Homework on UTXO vs Account Model

Ethereum 101
#2608

  1. Account model allows the blockchain to store other things like code of the SC and the state of the SC.

  2. There is no privacy as everyone can see the exact amount and the address of both the sender and receiver.

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#2609

  1. It requires less space than the UTXO model, enabling more transactions, a higher throughput, and improved scalability.

  2. It is always clear how much ETH was sent and to what address.

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#2610
  1. The account model can fit more transactions in a block. Faster processing and cheaper fees.
  2. Every transaction is clear where the money is being sent and received, unlike the UTXO model.
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#2611

Hey @Madlearner, hope you are well .

Is not about conterfeit ETHs nor BTC is not secure enough

In UTXO:
Even the fact of sending funds back to yourself, means an output with a input, so you can send 1 BTC (1 input) divided for 8 persons, 0.1 BTC per person = 0.8 BTC for persons (8 outputs). The rest 0.2 BTC will be automatically sent to another address that you control from your private keys, so it counts has another output. Inputs must be spent completely, there is no way to spent like 80% of an input (0.8 BTC), this is why if you spend that 80% to persons, the 20% goes back to yourself in another address (create a new input with the rest of the funds 0.2 BTC).

From the human perspective, is quite hard to follow the track of 1 input with 9 outputs. This is when some kind of privacy comes from, since 1/9 output is yourself and 8/9 are the persons. How can you track from the outside which belongs to who?

The Account Model is quite easy to track the provenance of a wallet/account, since you can track “from, to, quantity, hash, time” on the blockchain in a way more simple than UTXO.

Hope this gives you a clear view of the subject, keep learning! :

If you have any doubt, please let us know so we can help you!

Carlos Z.

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#2612
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? faster transactions, less congestion in the block
  2. How is the account model not as great as the UTXO model for privacy? UTXO can process multiple input and outputs. Account models all transactions are transparent.
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#2613

  1. You can fit many more transactions in each block because they don’t require inputs or outputs.

  2. Account model is less private because you can see exactly what amount of an ERC20 token went to each exact wallet.

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#2614

  1. The account model taking less space than the UTXO model is a benefit because space on the blockchain is limited so more transactions can be processed with the account model.

  2. The account model is worse for privacy because you can see exactly how much Ethereum is being sent to each account.

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#2616
  1. Account model just updates rather than UTXO which can require more input and outputs.
  2. Account model is more streamline meaning they can see amount given, whereas utxo it can create a loop so the money is a bit harder to trace of what is actually given
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#2617

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

  • The main benefits of the model not requiring as much space are: because the fees (per byte) are smaller as each transaction is smaller, the actual account model is simpler and therefore takes up less space and the Blockchain node file grows slower.
  1. How is the account model not as great as the UTXO model for privacy?
  • As opposed to the Bitcoin Blockchain, the Ethereum account model is not as private because the account code and balances are public and each transaction must go entirely from one account to another. So unlike with Bitcoin, you cannot send part of a transaction back to yourself unless you own another account and want to make a transfer directly to yourself.
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#2618
  1. saving space in blocks for more transactions
  2. it shows where money will be send to
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#2619
  1. Because its more fungible you can see the balance transfer from one wallet to another
  2. Because you’re able to send funds to receiver and back to yourself in one txs
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#2620
  1. its more fungible
  2. Ethereum account model transactions contain only an event, not a specified input and output state.
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#2621
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?

Faster updates and transaction speeds. New nodes being added to the network would be updated more quickly.

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

Eth coin is part of a balance that is calculated. Without UTXO outputs your cannot distinguish between individual Eth. You cannot trace to see where that Eth has been in time or what wallets it was in. The UTXO model makes BTC more fungible and Eth less fungible.

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#2622
  1. Smaller size, more performance
  2. UTXO can follow the “coin” all the way back to the miner.
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#2623

The account model doesn’t require much space as the UTXO model, why is that a benefit?
The account model’s simpler design allows for more transactions to be processed.

How is the account model not as great as the UTXO model for privacy?
With the UTXO model, it is difficult to know which address belongs to who as you send Bitcoin to someone else and yourself. Whereas with the account model, it is clearer to see what transaction was sent to which address.

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#2624
  1. Account model doesn’t require much space as UTXO and is a benefit as it is faster to just do the updates and therefore the balance is in one variable. Whereas in the UTXO model, separately it would have to be updated for the recipient for example and the balance sent also to a separate address. This slows the processing.
  2. The account model is not as great as the UTXO model for privacy because while sending the bitcoins for example, it is easy to find out from where it came from but with UTXO model, once the money is sent to 2 separate addresses, it is not easy to determine, where they have gone.
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#2625

1.The account model doesn’t require much space as the UTXO model, why is that a benefit?
More transactions can be processed with each block.
2.How is the account model not as great as the UTXO model for privacy?
The account model shows the transactions with more clarity and less confusion. The UTXO model add a level of complexity by creating multiple outputs making it harder to figure what ammount was actualy sent to who.

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#2626

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The block space is limited so it can store more transactions per Block. This also improves the transaction / confirmation time in the network.

  2. How is the account model not as great as the UTXO model for privacy?
    The transactions just send the required balance to the receiver, so there is no return path to the sender. This makes the flow of ETH transparent and you can trace the payments easier.

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#2627
  1. it is a benefit because it has more space to keep track of the smart contract code and serve its intended function.
  2. the account model is less private because transactions are very clear and can be traced directly.
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#2628
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

It is beneficial as it allows for less network congestion. It also makes coins more fungible i.e. the network can treat all ETH the same instead of being able to blacklist certain UTXOs.

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

The UTXO model gives another layer of anonymity in a transaction because technically a transaction can be made up of several inputs and outputs including outputs to yourself. This makes it harder to distinguish where each UTXO has gone.

In the account model, a certain number of coins just moves from one account to another. In other words, there is only one input and only one output.

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