Homework on UTXO vs Account Model

Ethereum 101
#2487

  1. it take less space for all the transaction, means faster transaction

  2. with the account model it is easier with the traceability, therefore less privicy

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#2488
  1. more participants operating which in turn means more decentralisation. Also, increased speed of transactions as less space is taken per block
  2. UTXO model offer more traceability as each UTXO can be traced all the way back to the miner. The account model is simply moving funds from one account to another and transfers are in units not as a mix of UTXOs as with BTC
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#2489

  1. The benefit of the account model not requiring as much space as the UTXO model is the fact that there is no need for totaling up the total amount of UTXOs available. The account always has a balance, which is a bit more simplified, but less private.

  2. The account model isn’t as great for privacy because people on the outside of the transaction can see exactly how much money is moving from 1 account to the other, where in the UTXO model, people cannot know which outputs are going back to the sender and which are going to the recipient.

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#2490
  1. The account model is more fungible in that 1 eth = 1eth no matter when or where it was spent. There is no transaction history tracing the specific Ethereum token. In the UTXO model you can trace the entire transaction history. Theoretically a Bitcoin with less transaction history could one day have a premium over a Bitcoin with a very lengthy transaction history. Say Bitcoin has a market value of $1 million dollars; a bitcoin with a transaction history of 2 could be worth say $1,005,000 and a Bitcoin with a transaction history of 10,000 could have a market value of $995,000.
  2. In an account model, the specific account balance is simply updated showing the new account balance after a transaction has been executed showing specifically where transactions were spent and received similar to a traditional bank account. In a UTXO model the transactions can be obfuscated through the transaction history.
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#2491

  1. The extra space in the account model over the utxo model allows for blocks to include more transactions and etherum has alot more stuff goin on snd needs the speed and space

  2. The account model encourages reuse of an adress and thats easier for anyone to see

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#2492
  1. Any space saving within Blockchain technology is a benefit. It makes the network and the wider process more efficient.
  2. UTXO model is considered better for privacy as it is far more difficult for individuals to find out where exactly funds came from. Eth is simply transferred to a recipient, where as a UTXO can be transferred to numerous recipients and it is next to impossible to know who these recipients are.
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#2493

1. The account model will apply the code of sending from 1 account to another without tracing that sum of transaction from different UTXOs so it takes less space which will help at reducing the sizes of each transaction. reducing the sizes of each transactions can fit more transactions into a block and also helps in increasing the transaction speed.

2. In the account model there is only one input and one output which makes it less private as you can see exactly where the money came from and sent to.

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#2494
  1. It makes the size of the blocks much easier to send and receive, as well as for approval to nodes that have both small and large computing capacity.
  2. The UTXO model allows for better privacy because transaction integration with bitcoin allows for multiple accounts to receive the bitcoin of a transaction, the account model however tracks the approved and paid addresses in a singular transaction.
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#2495

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    More room for faster transactions.

  • How is the account model not as great as the UTXO model for privacy?
    In UTXO you can do multiple transactions without showing which amount went where or who’s receiving what. In the account model exact amounts are shown in balance with one sending and receiving address.

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#2496
  1. It means each block will contain many more transactions leading to faster propagation and relatively lower transaction fees.
  2. The account model will not allow you to send some coins back to yourself as obtains with UTXO. So you cannot deceive the tracker.
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#2497

The account model from Ethereum requires less blockchain real state as it is not necessary to have a record of each UTXO. This is a benefit because it requires less storage.

On the other hand, it is less private as it is easies to track who do you send tokens to, or who do you receive them from.

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#2498

Homework on UTXO vs Account Model - Questions

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Blocks can include more transactions, and process faster

  1. How is the account model not as great as the UTXO model for privacy?

Transactions show from accountA to accountB. UTXO’s can have multiple inputs and outputs making it very difficult to track where the transaction is going.

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#2499

  1. It takes less time to process txs and more txs can be included in each block and this is also more efficient.

  2. There is no way to distinguish the transactions as they are just numbers that are changed. With BTC, the coins are non-fungible which makes them better for privacy transfers, when there is no way to know who the coins were sent to.

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#2500
  1. this is benefitial as the blocks can be smaller and the space for the node is smaller.
  2. you cannot send coins back to yourself, its easier to follow
#2501

  1. It requires less storage, this allows scalability and increases the speed of the network

  2. the account balance is clearly documented and can be seen at anytime. Transactions don’t have multiple inputs and outputs.

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#2502

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
The account model updates the sender and receiver account during a transaction.
This model takes less space on the blockchain.
The benefit is that the block size is reduced. In bitcoin, as we saw in the lecture before, block size determined the SEGWIT.

2. How is the account model not as great as the UTXO model for privacy?
If you send a transaction in bitcoin, you can send it to someone else, but also yourself.
No one from outside will understand that though.
In an account model, everyone sees the transaction receiver and sender, and how much you sent.
This reduces the privacy.

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#2503
  1. Because the blockchain blocks requires less space.
  2. Because i can not send money to myself. The eth goes to 1 account to another account.
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#2504
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • Less space means faster block making
  1. How is the account model not as great as the UTXO model for privacy?
  • The account model is not as good for Privacy because on the UTXO model it is very difficult to tell where the UTXOs are going looking from the outside in. On the Account Model other people can see when and where a transaction went through on your Ethereum Wallet.
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#2505
  • The account model requiring less space than the UTXO model has a significant benefit, in that it can fit more transactions per block
  • The account model is less private than the UTXO model, because the account balance is visible. i.e. With the Account Model it’s easy to ‘see’ the balance of coins in an account, because the observer doesn’t have to find all related UTXO’s for that account
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#2506

Answers to the “UTXO vs Account Model” Questions:

  1. It saves space on the blockchain.
  2. You can’t send money back to yourself in the same transaction as is possible with bitcoin UTXO model.
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