Homework on UTXO vs Account Model

Ethereum 101
#3070

1 - The account model makes it easier to know a balance - it’s just a single number and transactions are added or subtracted from that number to make a new/updated balance. A smaller block allows for faster processing.
2 - UTXO model lets you send funds to different addresses that you may or may not control. Account model has you send an exact amount to an address (single output) which makes transactions easier to trace.

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#3071
  1. It does not require the transaction history for each node. it just updates the balances as it progresses.
  2. Fungible vs. Non-fungible. There are no change wallets in Ethereum. The impact is that, for Ethereum, the destination address(es) are the ones originally specified. Bitcoin, on the other hand, sends any unspent UTXOs to a “change” wallet, and it therefor is more difficult for someone to know which of the addresses sent to are new individuals vs the sender’s change wallet.
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#3072

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Blocks can sore more transactions and increase storage capacity

  2. How is the account model not as great as the UTXO model for privacy?
    In UXTO model coins can be traced back based on inputs and outputs where as in the account model coins are fungible.

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#3073
  • The account model requires less space therefore it requires less storage and more transactions can be packed per block
  • The UTXO model obscures coins so it is difficult to track where these coins came from
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#3074

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It allows more transactions in a single block since it doesn’t require much space.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model allows anyone to see exactly where the transaction is coming from vs UTXO can have multiple outputs transactions from a single input.

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#3075

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Smaller transaction sizes, faster transaction processing times.

2. How is the account model not as great as the UTXO model for privacy?
Under UTXO you can send money to yourself and the recipient in the same transaction and there’s no telling who is the principle or the recipient in the transaction, whereas in the account model, it is clearer who these parties are.

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#3076
  1. Ethereum update the balance rather then track UTXOs.
  2. in UTXOs there can be many inputs and outputs even to yourself. ETH is from account to account.
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#3077
  1. Because block sizes and distribution times decrease.
  2. Because it is easier to just read one number than to track the history of all transactions of that account.
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#3078
  1. Each node needs sufficient resources (like memory) to operate. The fewer resources needed, the better it is for the node operators.
  2. In the account model, you have one account which is used for many transactions. In the UTXO model, many different addresses are referenced, even though those addresses are tied to the same account.
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#3079

  1. If a transaction has less to process the transaction will complete faster.

  2. With the account model you can not send money back to yourself. It is simply an update of account balances rather than the addition of all UTXO’s attached to that wallet.

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#3080
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

That is good because whenever less information needs to be handled on the blockchain - the full client for nodes and miners weighs less in GB used, so you could say it is more accessible to people. Also, blocks can include more transactions if they don’t operate from the UTXO model and on the account model

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

It is more easy to trace which account sent to which other account, but with UTXO’s in BTC there are many inputs to one TX and there can be just as many if not many more outputs from the TX. Apart from that some of these outputs might actually be travelling back to the initiator of the TX itself, making it all more complex and hence more private.

“To be left alone is the most precious thing one can ask of the modern world.”

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#3081

The benefit of the smaller size ethereum account model allows for smaller blocks which is important for transaction speed as well as the increased space necessary for smart contracts which can be added to the blockchain.
The account model keeps a running total of value rather than each transaction being seperate as in the UTXO model which also can have multiple outputs. This makes the account model easier to check how much one address owns whereas it is more difficult to assess that in the UTXO model due to the numerous transactions per address which makes it essentially more private.

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#3082
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? Because more transactions can fit into the block, therefore it results less race between me and others, can create lower fees, transaction time faster for example.
  2. How is the account model not as great as the UTXO model for privacy?
    Because we cannot track back a coin and others can see if I send back money to myself.
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#3083
  1. More transactions can be recorded in a single block
  2. Wallet transactions are easier to follow doe to simpler transaction path.
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#3084
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because more transactions can fit into one block. This could result into lower fees.
  2. How is the account model not as great as the UTXO model for privacy?
    With the UTXO model you can send money back to yourself, without other people knowing because they can’t see your balance. With the account model the transactions are less complicated and you can see the balance off an adress after a transaction. That’s why it’s easier to find out the wallet of an ethereum adress, therefore the account model is less private then the UTXO model.
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#3085
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

The UTXO model from Bitcon has to gather all UTXOs that you can spend to show you the balance, while each Ethereum transaction only updates an account balance. The data space used for storing both TX is different. In BTC network, UTXS uses more space.

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

The account model it is a transaction from one account to another. You can see the amounts and the addresses of the accounts.
One TX on Bitcoin network can have multiple outputs in one transaction and you can track all the outputs. You don’t know who is the recipient, you can send a part of the TX back to yourself.

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#3086
  1. it means lighter and faster transactions, also it will mean the nodes don’t need to store as much data.
  2. because only one transaction goes at a time and no ‘change’ is returned, it makes it easier to see what goes where.
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#3087

  1. The code is simpler. It doesnt need to follow each UTXO, imput and output. It could just be “send 1 btc from A to B”

  2. every account gets updated so you can know it’s current balance (eg: how much money is in it) while in UTXOs you don’t know where it was send neither where it came from

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#3088
  1. Space is everything. the smaller the size the faster and cheaper it is.
  2. Eth wallets hold the coin quantity where as UTXO tracks just the input and output of transactions.
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#3089
  1. it reducing the the size of the block
  2. anonymity is impossible with etherium
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