Homework on UTXO vs Account Model

Ethereum 101
#3150

1. The account model doesn’t require much space as the UTXO model, why is that a benefit? When a tx takes less space more tx’s can be mined, they can be put in a block without reaching its block limit which ends up helping with scalability and data storage issues (more tx per block).

2. How is the account model not as great as the UTXO model for privacy? We cant do one transaction with multiple outputs, because there are no outputs, in bitcoin we can create a tx that we can send some of the money to the specific destination while the rest we send ourselves.

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#3151
  1. this is a benefit as it takes up less storage, it is more fungible compared to BTC, and it is easier than counting UTXOs
  2. ETH shows one’s balances and shows where one is receiving money from others accounts, the UTXO does not have these features
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#3152

  1. Benefits of less space could be more room for the smart contract and faster propergation times of the network.

  2. Its less private than Bitcoin because you can track it easier

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#3153

  1. Transaction sizes are smaller, faster and cheaper

  2. 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 wa

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#3154

  1. The benefit is that we save space and reduce block size so, transactions will be sent faster and more efficiently.

  2. When we viewing the blockchain we can see exactly how much money we sent and to which address. There is no way to send both to someone else and to ourselves with only one transaction, like we do for example with BTC UTXOs model where with one transaction we can send funds to multiple outputs thing that doesn’t allows someone from outside to see which money went to which output.

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#3155
  1. It make space for more transactions in the block- faster and cheaper transactions.
  2. You can only send to one account in every transaction and not back to your self in the same transaction as in the bitcoin blockchain.
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#3156
  1. More transactions per block which increases storage and optimizes fees.
  2. Account model is more fungible as 1 eth in account a is equal to 1 eth in account b. In BTC with UTXO’s you can track the history of each individual “coin” through outputs whereas Ethereum just adjusts amounts in the ledger.
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#3157
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

This allows more space on the Ethereum network. More space means nodes don’t require demanding hardware in order to interact with other nodes on the blockchain. As long as the Ethereum network doesn’t require powerful hardware, more users can participate on the blockchain.

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

With UTXOs on the BTC network, no one can see what your balance is because money is just a series of inputs and outputs. The account model lets everyone on the Ethereum network see how much money you have as a balance. However, no one can see which Ethereum cryptocurrency one has as their balance.

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#3158
  1. Blocks can record more txs without overloading the node network. It enables higher decentralization.
  2. Account model reveals the actual account balance of every ETH address, whereas UTXO model keeps track of all the inputs and outputs, without revealing the real recipients directions of the transactions.
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#3159

[quote=“filip, post:1, topic:8445”]

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Faster to operate on the ETH blockchain and I assume it may not need as much computing power to reach consensus compared to BTC.

  • How is the account model not as great as the UTXO model for privacy?
    With UTXO’s within one transaction you could send money to multiple person including yourself.
    The ETH account model one transaction is from 1 wallet to another.

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#3160
  1. This is a benefit, because it can lower gas fees. If all you want to do is send currency, then the computing power its takes is likely much lower than using UTXO’s. There is also the added space. The simpler it is to exchange money the more space is available on the block.
  2. Its not as great because you can’t have multiple inputs and multiple outputs. Your account just reduces or increases your balance by the agreed upon amount stated in the transaction.
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#3161
  1. Account only stores the balances and whereas UTXO has more details like inputs and outputs. Account transaction is 1 input and 1 output making it very simple/lean structure and UTXO can have multiple Inputs and outputs.
  2. Account model only cares about the Balance, it is like transfer of funds from one person to other person (one add and one minus), In UTXO we can know from where each input came from and how much and where it is going to and can be traced from the creation by the miner till the current state of the output. Etheruem transactions goes from One Wallet address to Other which can be identified but Bitcoin we can only view the hash and we cannot figure out from which person to which person the amount is going - it is hard to identify.
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#3162

  1. So that more resources can be dedicated to storing and completing smart contracts.

  2. Because anybody can look up an account and see how much is stored at that account immediately.

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#3163

1 - The account model does not require as much space as the UTXO model, why is this an advantage?

A1 - Transactions can be carried out more quickly and in a larger quantity;

2 - How is the account model not as good as the UTXO model for privacy?

A2 - Transactions in the UTXO model enable privacy as it is possible to send them to yourself without being identified. In the account model, all recipients are identified.

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#3164
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

The benefit is that the account model uses less data to complete the transaction by not creating UTXO nodes to create the transaction.

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

The UTXO model had more privacy and security by creating the UTXO transactions, in each action and the addresses are encrypted with new addresses.

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#3165

  1. Each block will be able to hold more transactions. This leads to faster and cheaper transactions.

  2. In the UTXO model it’s possible to transfer money to several addresses where one or more of these may be your own. In the account model, there’re always only two accounts involved in each transaction and thus harder to hide who’s receiving the money.

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#3166

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    This means more transactions can be fit into a block and lower the transaction fees, and faster processing.

  2. How is the account model not as great as the UTXO model for privacy?
    The transactions can be tracked easily as from whom and to whom the transactions go to.

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#3167

  1. With more space, blocks can include more transactions.

  2. In Ethereum, there are no change wallets, each transaction has very direct addresses for sender and destination. Bitcoin has change wallets containing UTXOs, which are hard to track back to previous holders.

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#3168
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Blocks can include more transactions; this lowers the transaction fees and makes the processing quicker.

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

Transparency is gained at the cost of privacy. You can see the sender and recipient.

#3169

  1. The account model is the a change between wallets balances, it requires less code to translate it therefore less space, so the blocks can have more transactions.

  2. The account model with not good for privacy because the public key is always the same and it easy to track the transactions (balance changes) of that wallet on chain. UTXO’s in the other hand makes it difficult to track a wallet, because it can have multiple outputs, it can send fund to it self, etc.

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