Homework on UTXO vs Account Model

Ethereum 101
#261
  1. Benefits of the account model is less space needed on block so quicker and more efficient processing time
  2. The account model only sends the exact amount directly to another address so its fully transparent and easy to track so not as private as UTXO,s which can send to different addresses or back to yourself .
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#262

Smaller transaction moves faster and cheaper.

You can send more transactions on UTXO model thus creating less certainty about where a coin went.

#263
  • The account model doesn’t require much space as the UTXO model, why is that a benefit? The account model can fit more transactions and smart contract code.
  • How is the account model not as great as the UTXO model for privacy? The funds are held in an account, and funds are simply transferred from one account to another. Anyone can see the amounts and destinations for all transactions and could trace all transactions in an account.
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#264

  1. Less space is required to track balances and blocks can contain more transactions or smart contracts which improves scalability.

  2. The account model is more transparent because balances are recorded and it is not possible to send tokens to multiple recipients including yourself in a transaction.

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#265
  1. The account model adopted by Ethereum has some benefits: It requires less space resulting in lower transaction fees per byte, smaller transactions and smaller blockchain node files.
  2. With Bitcoin you can kind of hide your transactions dividing it into multiple very small transactions and sending some of them back to your wallet. In Ethereum you simply transfer the amount needed to the target wallet. The account code is public and the account balance is also public.
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#266

  1. Less space means more room for smart contracts

  2. Because it goes from A to B, it doesn’t get split where you don’t see which is the recipient and which is the sender’s change address.

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#267

  1. Faster transactions and it can store more transactions

  2. UTXO model you can send transactions to yourself that are distinguishable from other recipients

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#268
  1. More transaction can be stored in the blockchain.
  2. Account model change the numbers in the blockchain only. There is no split of transactions to other
    s ore back to myself. Its much easier to follow the money in an account model. Means less privacy
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#269

More transactions can be included in a block, the network is more scaleable and faster.

The UTXO model can send transactions that could be harder to associate with a person, as a transaction can be divided into several outputs that can be sent back to the sending address. In the accounting model that Ethereum uses, accounts and transactions are more transparent. One address holds the sum of all received transactions, which makes it easier to identify a specific account. Transactions go from A to B.

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#270

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
The account model can only transfer ETH from account A to account B. The size of such a transaction is smaller than a transaction using the UTXO model. Therefore transactions on the ETH blockchain are cheaper and use less disk space on the nodes.
2. How is the account model not as great as the UTXO model for privacy?
ETH transactions are simply transactions between accounts. But transactions of the Bitcoin network are more complex, because you can use the BTC of several UTXOs to send the BTC to several receivers. Whether the reiceiver of a particular out is yourself or another person, you cannot tell. Therefore the Bitcoin blockchain has more privacy than the Ethereum blockchain. On the other hand ETH are more fungible than BTC, because you cannot distinguish between one ETH or another. But in case of BTC you can trace back the way of each UTXO through the blockchain. A particular BTC can be marked and you can possibly tell if this BTC comes from a hack of an exchange or not. Marked BTC may be difficult to sell, because these BTC had been blacklisted on exchanges. So if you are not careful enough you may even destroy the privacy the UTXO model offers. Due to this traceability of BTC many criminals have been caught.

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#271

On ethereum and in the account model you can also create a new address and send to the newly creates address every time you make a new transaction. So when you say that funneling fund throught multiple addresses makes your funds more private. Well you can funnel your funds through many adresses on ethereum too.

#272
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • It allows other data to take up that extra space savings e.g. ERC20 tokens, Defi, smart contracts etc all benefit from the space that would have been taken otherwise.
  1. How is the account model not as great as the UTXO model for privacy?
  • When you send a bitcoin transaction, a majority of the time, some Bitcoin will be sent back to you which increases privacy. With Ethereum, your account is simply updated with exactly what you’ve sent and recieved.
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#273

  1. It’s a benefit because it doesn’t require as much data and processing power for each transaction. There is only your balance as the sender/receiver and the other person’s balance as the receiver/sender, not a seemingly endless string of UTXO’s linking every block together

  2. Because transactions are so direct with ETH you cannot “hide in the forest of UTXO’s.” With the UTXO model you can have dozens of UTXO’s sent out and even add your own address to the transaction to further complicate tracing it back to you, with the account model there’s really no hiding your transactions

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#274

  1. Less processing power and bandwidth is needed for transactions. Blocks of same size would contain more transactions in the account model vs. UTXO model. All coins in an accounting model currency are highly fungible, because their history can not be traced as it can with UTXOs.

  2. In the account model, each entry in one account has to correspond to an entry in another account. It is not possible to send parts of the money to one recipient and another part to oneself.

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#275

  1. The benefit from this is that it doesn’t require much processing power and space on the blockchain, meaning there will be more space for other stuff like smart contracts.

  2. The account model is not as great for privacy as UTXO model because ETH transactions don’t have inputs and outputs, it is just a simple movement of ETH from one account to another, without the possibility of adding several outputs, so everyone that checks in the blockchain can know how much an address sent or received.

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#276

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? it is a benefit because it takes up less space and has a greater storage capacity.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model is not as great as the UTXO model for privacy because there are no outputs. Each transaction can be seen from the outside, how much was sent and to whom.

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#277

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
The Code running behind the Account Model TX is much more simpler than the Code running behind UTXO TX.
This is accomplished by the fact that the Account Model doesn’t have UTXOs and it doesn’t keep track of all Inputs and Outputs of the TXs.
In the Account Model you don’t have to find and sum all of the UTXOs in order to find out what is the balance.
The Account Model it is just updating Account Balances, very similar to Banks.

2. How is the account model not as great as the UTXO model for privacy?
When looking from outside into the ETH Blockchain, you can see exactly how much money it was send from address to address.
This is not the case in the BTC Blockchain, because when you make a TX, a certain amount of coin is being sent to the Recipient and the rest of the UTXOs are being sent back to you as change.
When looking on a TX on the BTC Blockchain, the website that is reading the Blockchain will “guess” what address belonged to the recipient and what address belonged to you.

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#278
  1. There is more space for actual transactions
  2. Can follow persons’ spending, without actually tracking the actual eth, which leads to fungibility.
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#279
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Saving space is always a benefit. You can have more transactions, it is lighter.

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

In UTXO one adress always empty when a trnasaction is made and one part goes to the recipient and one part probably goes to an adress that you control and it is impossible to know which is which. In the account model you can track the adress of who has been paid.

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#280

The account model doesn’t require much space as the UTXO model, why is that a benefit?
You can fit more transactions in a block, which increases the transactions per seconds of the Ethereum network.

How is the account model not as great as the UTXO model for privacy?
A transaction of the account model has one input and one output. Everyone can see the amount you receive and the amount you send. The UTXO model on the other hand has multiple inputs and outputs. With the multiple inputs and outputs you can mask the amount you send to someone else. One of the output can be your own wallet.

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