Homework on UTXO vs Account Model

Ethereum 101
#2809

Since the account model requires less space it means that it requires less processing power to complete transactions allowing the network to grow more easily.

The account model makes anonymity harder with the lack of change wallets since you can no longer have multiple outputs like with the UTXO model in order to hide the intent of your transactions.

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#2810

1, More transactions can be stored in a single block, witch leads to faster transactions.
2. You cannot have multiple outputs for a single transaction, in witch case it would be harder to to follow the real outcome of that transaction. In the account model transactions are more transparent.

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#2811

  1. The account model benefits the nodes and the users directly by requiring less space for each transaction, thus making them cheaper and making the blockchain take up less space on each node. This also affects the number of transactions to be allowed in each block, making the rate of transactions per minute higher overall.

  2. The account model does not use change addresses on transactions, meaning you can see that the entire transaction was specifically meant for each recipient. In the UTXO model, it is impossible to tell specifically how much of each UTXO is actually being spent on an intended transaction, and how much of it is change.

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#2812
  1. By having less space as the UTXO model, this allows for more transactions to fit into a block meaning less fees per transaction. Also an increase in speed of network.
    2.The account model is less anonymous than the UTXO model meaning that it is easy to verify and follow transactions, destination addresses and see where the money came from and where it gets sent to. This model doesn’t offer the same privacy/decentralization features that the UTXO model offers. The UTXO model allows for the distribution of payments to multiple outputs/wallets which makes it harder to track or follow where the money originates and gets sent.
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#2814

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

The account model is a benefit because it takes less information to move the coins around compared to UTXOs because it is not tracing the past history of all the unspent transactions. This decreases the amount of data it takes is a benefit because it allows for more room on the blockchain for smart contract information to be stored, and as a whole, it makes the network faster and have more available room for expansion.

The account model vs UTXO model also makes for a clear difference between how the two cryptocurrencies are treated in their own networks. In Ethereum all coins are fungible / non-distinguishable from each other. All Ethereum are recognized to be exactly the same. However, with bitcoin, because UTXOs track the entire history of a “coin” from the point it was created by miners and all the transactions it has been through, there can be coins that have a bad history. For example, coins / UTXOs that have been used in scams, or criminal activities may not be treated the same way as a coin that has been used ethically since the time of its creation. So there are a few benefits of the account model that make it more efficient and protect the currency from separating into good and bad transactions that carry on in its history.

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

The UTXO model allows for you to send a transaction output to someone and also send a portion of the coin back to yourself. From an outsider’s view, it is very difficult to know which amount went to your recipient vs back to you. This is a good privacy feature on bitcoin. Ethereum on the other hand has the account model and instead of using UTXOs and adding up your amount in your wallet for your balance, you actually just have an actual balance that can be adjusted from one to another. With this model, you can send exact amounts from one account balance to another. There is no need to send back change as there is with the use of UTXOs, Instead, the sender’s account balance is decreased while the recipient’s account balance is increased in the blockchains database. This makes the transactions more obvious in terms of how much you are sending, how much you own, and where you are spending your Ether.

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#2815

Excellent answers, It’s easy to understand. Please keep them like that :muscle:

Carlos Z.

#2816
  1. This enables faster and “smaller” transactions within the network.
  2. The UTXO model must have input = Output - fees. This means that instead of updating an “account”, all funds are sent and some a received back as “change”. This creates more privacy as it is difficult to distinguish what funds were actually sent/received back.
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#2817

Homework on UTXO vs Account Model - Questions

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • The less space required the more quickly TX’s can be processed and more TX’s can be stored in a block.
  1. How is the account model not as great as the UTXO model for privacy?
  • The UTXO model required unspent fund to be sent out along side the desired TX’s and thus you could send the money back to yourself at another address that you control and there is no way from the outside to know the owner of that address
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#2818
  1. The account model utilizes a balance, which automatically reflects the work of the smart contracts. The inability to trace every UTXO or the history of the outputs and inputs frees up large amounts of space used to increase transaction rates and times.
  2. With the account model, pertinent information is exposed that would otherwise be private, such as amount spent, seller, buyer, from and to where. With UTXO’s, all you see is input and output codes, no specifics.
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#2819
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The transactions are smaller so it won’t take up as much space.
  2. How is the account model not as great as the UTXO model for privacy
    One can see and follow the transactions. It the UTXO model, you can have several outputs at the same time and can hide, to whom and how much you are sending.
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#2820
  1. More transactions can be stored in a block which reduces transaction time.
  2. With UTXO you send funds to different addreses when making an transaction. This makes it harder to determine who got what. With the account model you can exactly see what amount was send to which adress. By simpley knowing which addres belongs to who you can easliy determine who was the receiver and what amount he did receive.
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#2821

  1. It is a benefit , because for programmers it is way easier to code a command . Also transactions weight less and this could increase their speed and the ability to fit more transactions into a single block

  2. The account model doesn’t have inputs and outputs which reduces the traceability . Eth coins become fungible which means that the dark past of a coin won’t affect its price. All transaction accounts are visible .

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#2822
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Shorter codelines, faster tx, more tx on a block,

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

UTXO tx can be sent to multiple addresses including your own, account model shows exactly what was sent where. However, the origin af each coin or part of a coin is not traceable, once on a balance it is just a number.

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#2823

1 The block can hold more transactions and is faster.
2 Account model, You can easily track transactions from one account to another. It is not possible to split a transaction and send it to yourself, for example.

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#2824
  1. Saving space means transaction fees are smaller as there are less bytes per transaction.
  2. You can only send Eth to another address and not back to the original address thus masking which recipient is which.
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#2825
  1. Space savings is a great feature generally for any network, more tx in a block faster processing etc
  2. In the account model it can be tracked who paid you, and who you pay. Whereas in the UTXO model due to the vast number of inputs and outputs it is essentially impossible to track
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#2826
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It means that it allows for faster and a larger number of transactions being processed in a given amount of time.
  • How is the account model not as great as the UTXO model for privacy?
    Because everyone is able to see your transactions, where you got your ethereum and where you are sending it
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#2827
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Becase the transactions are samaller, faster to process in comparisson with the UTXO model, and the file on the block chain node does not grow that fast as it did on the UTXO model.
  2. How is the account model not as great as the UTXO model for privacy?
    Because on the blockchain you can see how much you sent and from what addresses to what address, and there is no way to send to somebody else’s address and to yourself, this is why the privacy is a bit lacking on ETH compared to BTC
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#2828
  1. Because it is very easy to express the account model in code and in text compared to the UTXO model.
  2. There is no way to send money back to yourself and the transactions are easily traceable on the blockchain.
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#2829

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
It is then easier to operate and run nodes because it involves less hardware investment. It is also more efficient as more transactions can fit into one block.

2. How is the account model not as great as the UTXO model for privacy?
One cannot send coins or tokens anonymously back to oneself using an account model. The addresses can be tracked.

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