Homework on UTXO vs Account Model

[Alextrader01]

1. The Account Model doesn’t require as much space as the UTXO Model. This is a benefit because more transactions can fit into blocks increases the speed of transaction times.

2. The Account Model is not as great for security as the UTXO Model because you can’t track where each Ethereum coin has come from like you can with Bitcoin. With UTXO’s you can follow the coin back to the miners it came from. You can also send yourself BTC along with the person you are actually sending BTC to making it harder to see who the real transaction has gone to. With Ethereum neither of these two things are possible. You can see the address the Ethereum was sent from but you cannot track back the origins of the coin neither can you send yourself some when sending some to somebody else as there can only be an sender and receiver in an Ethereum transaction not multiple like in Bitcoin.

[Virginia]

1. The extra space in account model of eth allows for other things like smart contracts and the ability to store balances.
   2 the account model shows what account did what but the utxo model is not tracked by account and one cannot be sure where each transaction sent went

[Ebby]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   -Because the account model takes less space when he executes a transaction. It makes the blockchain works more efficiently, the transaction will be quicker confirmed.

2. How is the account model not as great as the UTXO model for privacy?
   -The account model is simpler technology to do transactions. It changes the data in the blockchain database that is open for everyone to view.
   It is easier to track what is the amount or to whom it is sending to.

[luciangregory]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   As it allows for there to be less information stored on the block. Nodes are hosted on personal computer so a smaller amount of memory required in hosting a node is more likely to increase general uptake.

2. How is the account model not as great as the UTXO model for privacy?
   It creates a simpler series of transactions that anyone who looks at the blockchain can see, and doesn’t allow for something like a change wallet, where I transfer a part of my funds to an address I already own so as not to reveal the actual amount I may have spent.

[FreeBird81]

1. It is less space for a transaction and therefore more transactions can be done at the same time and people won’t have to wait long for confirmed transactions.

2. In the account model you are able to see how much money you send and to which address you send it to, as for the UTXO model it is much harder for public to tell how much your sending and to whom you’re sending it to.

[dev]

1. More transactions can be added to each block, less cost per byte.
2. When you send ETH, it can only be sent to one account, not multiple. Transactions are more fungible.

[maf_86]

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

It doesn’t keep the transaction data the same way as the UTXO model does. Transactions in the Account model take less space as it does not store all the inputs and outputs, but instead operates with summary balance.

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

In the Account model, each transaction has only 1 output, which is easy to track. Instead, in the UTXO model, a transaction might have multiple inputs and outputs, and some outputs send money back to the funds’ owner, but it is impossible to track which of the outputs actually do that- this adds privacy.

[wincent_lehto]

1 account on eth takes less space in a block than UTXO so it scales better.

2 UTXO you can trace all transactions but can’t be sure who got what and did you send money to yourself on a new address. in account model it balances that shows where money did come from and where did you send money. personally, I think privacy is better on there because you can traceback if you use a tornado.cash protocols

[yodasaysso]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit? Less space and simpler coding translates to faster, less expensive fees.
2. How is the account model not as great as the UTXO model for privacy? All transactions are transparent and traceable on the blockchain with transaction amounts visible to anyone.

[Devin.Crypto]

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

The benefit of more space means it can execute more byte code faster. This also allows for increased tx speeds.

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

Easier to track all the tx history.

[StuartZW]

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

• the account model simply keeps balances on a debit and credit system, whereas the UTXO system actions transfers of the UTXO with ‘change’

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

• UTXO model does not maintain an account balance per se, the wallet adds up all UTXO’s that your key has access to. Account model simply keeps a balance on the blockchain with is public

[cryptocol]

1. The UTXO model uses a system of inputs and outputs to process transactions. Using my private key I can access unspent transaction outputs that have been sent to my public address and create a new transaction by using the UTXOs as the input data. The account model does not use input and output data in this way, but rather it maintains an account balance on the blockchain database and simply updates the balance with regards to the most recent transaction and therefore does not require as much space on the blockchain.

2. Transactions within the account model transfer exact amounts of value from one account to another, meaning that the public addresses of the sender and the receiver are evident to an outside observer. This is not the case with the UTXO model as multiple input and output public addresses can be used in the transaction.

[JasonM]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   This allows for my transactions per block, resulting in faster confirmation times and lower fees.

2. How is the account model not as great as the UTXO model for privacy?
   As the account model does not deal in inputs and outputs, there is a single transaction output when sending Eth

[MonikaGrabowska]

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

It does not have input and output really, just updates the database in the blockchain. It is simpler than UTXO model but it is less private.

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

Looking from the outside on the account model we can tell how much money was sent from which to which address. We cannot send money to someone else and ourselves in one single transaction like in Bitcoin. Bitcoin is more private as there is no way to see how much money was sent to ourselves and to someone else…

[bigbill]

1. Each transaction just update accounts. This takes less computer memory/code/text, which allows for more transaction per block.
2. Doesn’t have privacy as it shows the account balance and cannot confuse the reader by sending funds back as with the utxo model.

[DPrice67]

1.The account model doesn’t require much space as the UTXO model, why is that a benefit? This is a benefit because less space translates into faster tx processing times, and more opportunity for smaller nodes to participate in the network which translates into greater network security.
2. How is the account model not as great as the UTXO model for privacy? Ethereum’s account model lacks the privacy of a UTXO model because eth is sent or received based on a mathematical update of an amount in one’s wallet, which allows visibility into particular departure and destination locations. The UTXO model is based on a system of inputs and outputs to various addresses that are practically impossible to link to a specific individual.

[RichJamo]

1. Transactions don’t take up as much space, so once can fit more transactions per block, which means the ability to handle high transaction flow is better, and possibly transaction fees are lower too.

2. In the UTXO model you could send money back to yourself without anyone knowing that you are doing it, and without people being able to tell what you are sending to yourself vs to others. In the account model this is not possible.

[Mr_Mike]

1. Transactions don’t take up as much space. It is a simple transfer from one account to another. There is high fungibility and it is always the case that 1 ETH = 1 ETH.

2. UXTOs have a trail of the origin of each transaction that each BTC has ever been involved in. Therefore, it can be noted that some BTC may not be worth the same as others if they have been involved in a robbery or blacklisted for some other reason.

[ChloeN]

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

2. How is the account model not as great as the UTXO model for privacy?
   In the account model it shows clearly where is money sent from and where is money sent to while in UTXO which is hard to tell.

[ivory_elephant]

1. Etheriums account model is more efficient in terms of requiring less space to record a transaction, this will allow more transactions to be processed and require less storage space on the network to keep track of transactions.

2. The account model is worse for privacy in the sense that users cannot mask their transactions.