Homework on UTXO vs Account Model

Ethereum 101
#2950
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  2. How is the account model not as great as the UTXO model for privacy?

A.1. The account model does not require much space as the UTXO model. This is a benefit because more transactions can fit in each block. Moreover, there is no UTXO concept in the account model. The account balance is simply updated each time a transaction takes place. Ethereum transactions are faster as newly mined blocks are released about every 15 seconds in contrast to Bitcoin about every 10 minutes. However, Ethereum transactions are prioritised based on those with higher fees. On the hand, Bitcoin manage to reduce its higher transaction fees, increase its block size limit and speed up transactions through the Segwit and the Lighting Network implementations.

A.2. The account model is not as great as the UTXO model for privacy reasons because transactions can be traced to specific accounts including respective amounts. In the UTXO model OUTPUTS can be sent back as new INPUTS based on the rule OUTPUTS = INPUTS + Tx fee. Moreover, UTXO have unique addresses; by using a unique address to receive each UTXO, users can hide the connection between their UTXOs from the public. To an observer of the blockchain, it is difficult to pin point which UTXOs belong to which users.

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#2951

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    more tx in a block, less fee, faster tx.

  • How is the account model not as great as the UTXO model for privacy?
    the account model is easy to track. you can see how much and where from the money was sent.
    [/quote]

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#2952
  1. It takes less space to code and therefore procedure can be faster and store more datas or transactions.
  2. It can’t trace the history of each coin which makes it more fungible. Can’t distinguish the provenance and the quantity of transactions to each recipients. Doesn’t have the same privacy principle as bitcoin.
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#2953
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Blocks can have more TXs in that space

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

You don’t have information from where each coin is coming, but have info about which the addresses that send it.
It’s not completely anonymous

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#2954

The account model doesn’t require much space as the UTXO model, why is that a benefit?
A: It’s a more efficient model as the blocks can hold more transactions than would happen otherwise

How is the account model not as great as the UTXO model for privacy?
A: The ETH account model is more transparent as the amounts and destinations of the transactions can be easily tracked. The balance is also explicitly stored; BTC relies exclusively in UTXO’s where several transactions with different destinations can be combined making the identification of whether the recipients are different people or not more difficult.

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#2955

  1. Saving space is good because it takes less network requirements which makes it more available.

  2. The lack of the ability to trace the origins of the coin.

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#2956
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The TX size are smaller, faster and lower fees.
  • How is the account model not as great as the UTXO model for privacy?
    You can see every TX, to where you send money or access to your balance easily.
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#2957

  1. Because 1 block can store more transactions, increase storage efficiency.

  2. Because It is not as secure because you can see where it comes from and which account it goes to.

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#2958

  1. The account model doesn’t require AS much space as the UTXO model, why is that a benefit?
    less space means smaller blocks and therefore more transactions per block. Also it requires less code.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model only keeps track of the balances of each address. Hence it is easy to track how much of each coin or token was sent from one address to the other. With UTXOs it is possible to send money to a different address and back to your own address in one transaction. However, it would not be possible to figure out which UTXO goes where…

Question:
To me it sounds a bit like each UTXO would require a new address. So if I send money back to my own address in one transaction, where part of the money goes to Person B and part of the money back to Person A. Would the part that goes back to Person A go back to the same address? If so, why would it not be possible to trace that?

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#2959

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

Because it does not stores all the input and outputs, the Tx’s just updates de balance in each wallet.

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

The difference is that with UTXO it is posible to send many Tx’s and in them send money back to you, making impossible to know which Tx went to another user. With account model each ETH that is sent is for a specific address from a specific address so everyone can know how many ETH each account can have.

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#2960

  1. Txs take up less space on a block which means more txs can occur at the same time.

  2. You cannot use more inputs and/or outputs to increase anonymity. It is just from one account to another.

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#2961

1. The account model doesn’t require as much space as the UTXO model, why is that a benefit?
The account model doesn’t require as much space as the UTXO model. Each transaction size is smaller, hence, faster transaction speed and more memory per block. Equating to lower fees (theoretically).

2. How is the account model not as great as the UTXO model for privacy?
The account model enables one to trace and/or follow each transaction. In the UTXO model there can potentially be several inputs and/ or outputs. The UTXO model is considered more private in theory because the entire transaction (UTXOs) does not reflect the actual amount spent and to whom.

Best Regards

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#2962

1.Because you can include more transactions into a block(more
transactions can be done at the same time).

2.Because there’s no way to send money back to yourself. You can see exactly how much money you sent and to which address and know that this address received it (it is either your or somebody elses address/ you can track the address of who has been paid, whereas the UTXO model, funds can be spent to multiple accounts, one of which can be your own/better traceability/less fungiable).

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#2963
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

The blocks will be smaller, you can include more transactions, faster transaction

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

You are always able to see which account a transaction originates from and to which account it is sent to. It’s not private

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#2964

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? Ethereum nodes require less memory to store account balance compared to the UXTo model and so they can store mores transactions in a block.

  2. How is the account model not as great as the UTXO model for privacy? In bitcoin you can send transactions back to youself as well as to other recipients, whereas in ethereum you can’t do that from the same wallet, and thus ethereum transactions are more easily traceable.

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#2965

[quote=“filip, post:1, topic:8445”]

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    smaller blocks easier transferable and faster processing
  • How is the account model not as great as the UTXO model for privacy?
    Accounting model can track the addresses of who has been paid where as the UTXO model can pay out multiple addresses of which one or more can be your own address
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#2966

  1. Less space equals less processing time per block.

  2. Since there are no UTXO ,funds sent can be traced easily.

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#2967
  1. This will help with scalability.
  2. The UTXO model adds some obscurity, because it is not really possible to discern who received the outputs from the transaction. You could have multiple addresses that belong to the same person, or just send bitcoin back to yourself. In the account model, there is a balance kept, which is public…
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#2968
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    -There is more space for transactions
    -lower fees
    -lengthier contracts
  2. How is the account model not as great as the UTXO model for privacy?
    UTXO model is harder to tell whos sending transactions to another person as you can send the currency back to yourself with UTXO model
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#2969

  1. Less space means more trsnsactions per block are possible in comparison to bitcoin which also could mean more transactions per second.

  2. Because unlike bitcoin ethereum does not work with utxo’s and you can not send transactions to yourself. This makes it easy to see from which wallet every transaction originated.

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