Homework on UTXO vs Account Model

[IDN001]

Answers:

1. More transactions in one block. It saves space in the block.
2. In BTC network you can trace UTXOs but you can not say where the money is going as in same transaction you may also send it to your wallet, whereas in ETH network you can trace who sends which amount to which address. Therefore, privacy is a bit compromised with respect to BTC network.

[L.Sokol]

1. Less space for the transaction so increase in size

2. Account Model is less private as you can see the transaction history to and from accounts. But one large benefit that outweighs this is more fungible.

[nutrina]

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

2. How is the account model not as great as the UTXO model for privacy?
   Because you have one account (wallet) from which you will spend amounts of money as you need. Hence you can see the entire transaction history of that account.

[Sedna]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   Benefit is that TX takes less place and you can fit more of them in a block. And it allows faster TXs.

2. How is the account model not as great as the UTXO model for privacy?
   Because it sends the exact amount from your balance to a recipient address, while in BTC you send UTXOs that go to the recipient and a part goes to yourself. Ethereum is easier to trace.

[FranciscoNeto]

1. Blockchains grow in a fast pace, requireing huge space to store it. As it is a decentrilzed ledger in which every paticipant has a copy, it may result in a incredible waste of storege. As the account model requires last space, it contribute to a smaller blockchin that grows slower.

2. UTXO allows users to send a transactions to an account and to another one at the same time keeping all the records of previus transacations. Thereofore, useres can send transactions to one address and back to themselves making it hard to trace which account belogs to whom.

[OlgaB]

1. The benefit of account model not taking much space is that: more transactions fit into a block, and then the speed of processing is increasing.
   2.The account model is not as great as the UTXO model for privacy because there is no way to send back to yourself a specific amount of coins. Also, details such as amount and to whom it was sent is public.

[Cero]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   Basically everything that require less space is beneficial. Smaller block content leads to faster and cheaper transactions - more transactions fit in one block.
2. How is the account model not as great as the UTXO model for privacy?
   You do mot know provenance of transaction. Audit trail is not present here as it is in Bitcoin model UTXO.
   With UTXO model you have more privacy-you do not know the recipient of the transaction. Account model is less private-you can se the input and output transactions.

[frankiewalters]

@filip

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

1. More space = more transactions in a block = faster = cheaper.
2. Account model is less efficient when it comes to traceability. It is more fungible: it has the ability to be interchanged with other goods or assets of the same type. Although it simplifies the model, this also means there is a slight compromise on the aspect of privacy.

[mchiando]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   Less problems with block size and quicker
2. How is the account model not as great as the UTXO model for privacy?
   Cause you don’t save the account balances of the holders, but only the transactions and the addresses so it is more difficult to build the balance of each single address (wallet)

[R.Samson]

1. The account model doesn’t require much space because it doesn’t record every UTXO, it just automatically updates the balance, so therefore more space for new transactions on the block.

2. Account model is not as great as the UTXO model for privacy because it doesn’t record every UTXO, but it does record addresses of the wallets you send and receive the coins to and from, plus the exact amounts.

[Ruzz]

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

More space and higher transaction speed in the blockchain.

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

The account model is easier to trace as its just updating balances in the sending and receiving wallets as per the transaction specifications but the UTXO model allows you potentially set outputs to different wallet addresses (which you can potentially own) which makes it harder to trace individual identities.

[cashworth]

1. by not taking up as much space more transactions can be stored.
2. the account model is not as great as the UTXO for privacy because everyone can see all transactions. You just send the amount needed and don’t send any change back to yourself.

[PoeAslan]

1. Due to no inputs and outputs you will save space.

2. You can se which account the transaction is coming from and you can’t send to an account and back to your own account in the same transaction.

[Timschi]

• 1 Smaller transactions need less time to travel through the network and less space on the blockchain. So that should have a positive influence on transaction time, while more transactions can be put into a specific blocksize.
• 2 With the account model sender and receiver are directly linked together, meaning, what is deducted from my account gets credited to yours. With the UTXO model, as i understand it, you can create more “chaos” with several in - and outputs, making it harder to decipher a transaction at first glance.
  On the other hand, if you can track every milli Satoshi back to it´s origin as a freshly minted BTC, isn´t it just a matter of work you put into tracking until there is absolutely no privacy in both models?

[Krisztian_Lekrinczki]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   every transaction are simplier, continuing less privacy info so they are smaller.
2. How is the account model not as great as the UTXO model for privacy?
   it is easier to follow where the transaction came from and where did it go.

[Aniruddh_dhoot]

1. More transactions can be stores in less amount of memory, this increase the scalability of the blocchain.
2. It is not as secure because u can see it comes from which account and goes to which account.

[Beverley]

1. If less space is used, more transaction can be processed and transactions can be processed faster.
2. UTXO shows transactions, outputs spent and unspent. In the account model only the current set of accounts and their balances are shown.

[Darnell_Calhoun]

1. The benefits of the account model are 1. It is way more simplistic than utxo model, so there are no in- puts or out-puts, accounts are automatically updated taking from one account and adding to another. 2 each coin because it si not tracked retains its value making it fungible.

2. In terms of privacy the account model displays an account balance on Eths public blockchain therefore there is less anonymity

[SteveC]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   more transactions can be added into a block if they require less space

2. How is the account model not as great as the UTXO model for privacy?
   there is only one output address and so without multiple output addresses it is clear exactly where each output goes

[Grdylineman]

• The account model doesn’t require much space as the UTXO model, why is that a benefit?
  the account model is easier to follow and see where funds are coming from and going to where the UTXO model is not so clear.
• How is the account model not as great as the UTXO model for privacy?
  the account model includes a nonce in every transaction made by the account and if the account makes several seperate transactions but the first transactions fails to get added to the block the following transactions will also fail.