1- The account model doesn’t require much space as the UTXO model, why is that a benefit?
It updates balance of the account. It does not store ( in that account) history of the specific Eth. Transaction in Eth is like: Update acc A and update B with XY.
2- How is the account model not as great as the UTXO model for privacy?
You cant send Eth to yourself. Also its easier to track all transactions- you see that Eth goes from A to B specifically.
every space saving is good because that means more TX can be included in a block.
i cannot send money back to myself by creating different outputs where no one can tell who holds the private key. In the account model a TX just changes the balances in accounts, very traceable.
Since the Account model allows transactions to be smaller, more transactions can be fit in each block.
The Account model falls short in the sense that one cannot trace back a particular asset back to it’s origin.
To speak to your point in question 2, I think it might help to point out that when sending part of the funds to yourself in a UTXO transaction, you would likely not use the same address that you are sending the funds from. You would be sending it to another address that you ALSO control, Therefore anyone that queried the blockchain would just see a transaction that looks like any other. Keep in mind you can create multiple public addresses based off of the same public key. For the ultimate security you would only ever use a public address once. Which brings us to your question; How does this lead to greater security. Well the first time you use a public address, there is hardly any data to go off of in order to figure out a persons identity, however if you use the same address…the more transactions your make the more possible clues you give others to figure out who you are. Once your real world identity is tied to an address anonymity is gone forever for that address…but if you create new addresses frequently and funnel funds through multiple addresses you control on a regular bases it becomes harder to figure out who you are. There are also services that can do this for you…for a fee of course.
It takes up less space on the blockchain.
The only thing a transaction can do is transfer funds from one address to another. You are not able to send some funds back to your own adress.
The account model doesn’t require much space as the UTXO model, why is that a benefit?
It leads to less to propagate and therefore faster convergence.
How is the account model not as great as the UTXO model for privacy?
Well, any individual account balance can be seen and tracked over time in the account model. In the UTXO model it is hard to distinguish who is actually receiving money in the transaction as there can be multiple recipients, of which, one/all/or none could be the same individual who sourced the transaction.
Because with the account model all transactions update accounts, and you only move funds from A to B, the transactions doesn’t have inputs and outputs taking more space.
2.
Because we can see how the funds went to A from B, rather than having more inputs and outputs, which would gave more privacy.
Space saving is important in long term. More transactions can be stored in a node and information retrieval is more efficient.
The account model sends one transaction to one address. A person can see the exact amount of the transaction in the address. UTXO can separate one transaction into multiple addresses.
Homework on UTXO vs Account Model - Questions
The account model doesn’t require much space as the UTXO model, why is that a benefit?
It needs less less space, its faster.
How is the account model not as great as the UTXO model for privacy?
Its fungible. You can see the only direct transactions. So you can see the total that someone has. But in the UTXO model you have a lot of smaller transactions added together to a balance.
This is a benefit because it allows more space in blocks. On ethereal space is important because blocks contain smart contract code and state of smart of contracts as well as transactions.
Money moves from account to another account this simple model allows for easier tracking. UTXO model of bitcoin is messier and harder to determine the recipient of funds.
Blocks can include more transactions with less space, which means a lot more transactions (like for ERC 20 tokens) can happen at the same time very efficiently.
The account model easily shows where the money comes from and where it’s going. A UTXO model is harder to tell which money goes where, because one transaction can have multiple outputs.
1.Because you dont gotta track every UTXO.
2.You can see how much was send and to who.
1 transaction doesn’t take a lot of blockspace, but running a full Ethereum node is much heavier than than a bitcoin full node. Bitcoin doesn’t has an EVM full of smart contracts to execute.
Currently the bitcoin blockchain is 306GB.
A geth Ethereum full node is 3750GB
Don’t forget that every smart contract on Ethereum has to run on every node. Thats why Ethereum desperately needs to scale with sharding and moving over to Proof of stake.
Yes and most importantly, only your private keys knows wich addresses with utxo’s belong to 1 person. Every transaction has a different address while on ethereum, every account keeps the same address.
If you pay someone in ETH, you can check your transaction on the blockchain, and you will be able to see the balance of this account + all tokens it holds. Bitcoin is more private because every transaction has a different address. So you can’t know how much bitcoin he owns. In Bitcoin you can only track utxo’s while on ethereum you can track accounts
It is a simpler model, more efficient.
Because the UTXO model can hide transactions better. It is less clear where the outputs are going making it more private. Account model are transactions between one account and another for exact amounts without any “change” going back to your account.
1.It’s benefit because can handle more transactions - what makes ETH transactions much faster than on BTC network
2.The UTXO model have all input’s and output’s in transaction what is not that simple to know and track every transaction and Account model is simple because stores only total balance of the transaction from A to B and everyone knows( who sent, how much and to whom).