- It allows for more Tx per block.
2.From the output you can see the exact amount that was sent
and to what address it was sent to. This lowers the privacy of Tx.
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As each transaction only needs to validate that the sending account has enough balance to pay for the transaction, a large number of transactions can be propagated through the network with a much less input/output data transmission that would be needed for UTXO transactions.
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In the UTXO model, you can send money to yourself and to someone else at the same time. This situation makes it difficult to track who is sending what to who. Meanwhile, in the Account model, that is not possible. Therefore, the tracking is easier and less private.**
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- If the account model does not require as
much memory, then the network should
run more efficiently, possibly boosting the
rate of transactions per second. In
addition, new nodes may be added much
more quickly because less data would be
needed to bring them into sync with the
network. - The account model encourages the reuse
of addresses, so it is easier to link
accounts to one another.
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1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Higher storage capabilities in the blocks, faster transactions.
The benefits of the UTXO Model are:
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Scalability — Since it is possible to process multiple UTXOs at the same time, it enables parallel transactions and encourages scalability innovation.
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Privacy — Even Bitcoin is not a completely anonymous system, but UTXO provides a higher level of privacy, as long as the users use new addresses for each transaction. If there is a need for enhanced privacy, more complex schemes, such as ring signatures, can be considered.
The benefits of the Account/Balance Model are:
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Simplicity — Ethereum opted for a more intuitive model for the benefit of developers of complex smart contracts, especially those that require state information or involve multiple parties. An example is a smart contract that keeps track of states to perform different tasks based on them. UTXO’s stateless model would force transactions to include state information, and this unnecessarily complicates the design of the contracts.
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Efficiency — In addition to simplicity, the Account/Balance Model is more efficient, as each transaction only needs to validate that the sending account has enough balance to pay for the transaction.
Source: https://medium.com/@sunflora98/utxo-vs-account-balance-model-5e6470f4e0cf
2. How is the account model not as great as the UTXO model for privacy?
With the Ethereum Account Model, when someone is seeing the blockchain, they can see exactly how much money I sent, to which address I sent the money to, and they also can see what address received it. That will either be someone else’s address or my address. So privacy is lacking a bit with Ethereum.
It is not like that with Bitcoin, where there were many inputs and outputs and its impossible to know from outside who is sending and who is receiving.
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The account model doesn’t require much space as the UTXO model, why is that a benefit?
It is a benefit as the Ethereum block takes up less space which would mean faster processing times. -
How is the account model not as great as the UTXO model for privacy?
The account model allows users to send only a single output. So users cannot send a transaction back to themselves or to a second or third person for that matter.
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- The account model doesn’t require much space as the UTXO model, why is that a benefit?
- Because you only have th actualize the amounts on the accounts. Not every transaction in and out.
- How is the account model not as great as the UTXO model for privacy?
- The account model is better for privacy. I would say. Because maybe you can not direktly “anonymous” send to your own wallet but the coins also can not be tracked from there creation.
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1, it leaves more space and can fit more inputs within one block,
2, it can always be seen the sender and the recipient of the transaction as it only updates balances,
BTC uses UTXOs that can be sent to one or more recipient and within one transaction also to an other account that belongs to the sender. An outsider won`t be able to tell which belongs to whom.
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The account model doesn’t require much space as the UTXO model, why is that a benefit?
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How is the account model not as great as the UTXO model for privacy?
Answers
1). Less space requirement means more gain from increased transactions per block and more processing fee.
2). The UTXO model allows you to have two transaction outputs in a single transaction. Therefore, you can send money to someone and send the balance back to yourself and nobody from the outside can differentiate which output is for who thereby increasing privacy. But, the account model doesn’t allow this, it only allows single transaction output per transaction, making it less private as outputs can be more easily traced.
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Hey @Bhavan, hope you are great.
Did you forgot to type your answers to the second question?
If you have any more questions, please let us know so we can help you! 
Carlos Z.
1-You can put more transactions on a block & therefore full nodes may be more abundant or not require as much computer space. Also fees per transaction may be small as they use less computing time because they don’t calculate a balance each time a transaction is made & transaction speed may be faster than with UTXO model.
2-Transactions are not split into multiple outputs so it is easier to trace where ETHER came from, as well as the amount of each output is much more equitable to amount of inputs.
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The ethereum account model transactions take up less space, this speeds up transaction time, enabling lower fees and allows more traffic , more efficient.
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The account model is not as private as UTXO model as UTXO transactions can be obscured, as output destinations are uncertain with multiple outputs increasing privacy, where as the ethereum account model is transparent for everyone to see.
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The account model doesn’t require much space as the UTXO model, why is that a benefit?
It’s a benefit in the sense that that part of a transaction takes up less space on a block and requires less computing power to process. -
How is the account model not as great as the UTXO model for privacy?
Unlike UTXOs, which travel between anonymous addresses which can’t easily be traced to individual users, the account model keeps track of how many funds a user controls.
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- The account model doesn’t require much space as the UTXO model, why is that a benefit? The account model doesn’t require as much space. One block can store more transactions increasing efficient storage.
- How is the account model not as great as the UTXO model for privacy? Can easily determine where the money comes from and where it is sent unlike UTXO because one transaction could have multiple outputs.
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- The account model doesn’t require much space as the UTXO model, why is that a benefit? — more accessible as less hardware requirements for full nodes for individuals
- How is the account model not as great as the UTXO model for privacy? — cannot send money to self, so can only see that money was sent to another address
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1)As much space is not required by account model, the transactions will be smaller and more transactions can be stored in blocks ultimately it will save memory and makes network faster
2) As in UTXO model you can send back fund to yourself only and no will know it that it is send to receiver or yourself
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Space-saving is a great saving for any node operator, it increases the speed of transactions and also increases storage efficiency.
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The account model has no inputs or outputs so everyone can see and follow every transaction easily, the UTXO model makes it harder to track as you can have multiple inputs and multiple outputs.
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scaleability of transactions
you can not hide tx
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1 Because there would be more space for information on the Blockchain. It would also be more fast.
2 Because its possible to see the transactions: to who you send money, how much and when and were.
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- The account model doesn’t require much space as the UTXO model, why is that a benefit?
It allows for processing more transactions in a single block and overall takes up more space in the blockchain - How is the account model not as great as the UTXO model for privacy?
You can’t really trace the origin of a specific coin as you just see that it came from one single address.
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- You’ll get more space for other things in the block.
- The flow of currency is straightforward in the account model, while in UTXO model, when you send a transaction, you don’t know who’s getting which amount.
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