Homework on UTXO vs Account Model

Ethereum 101
#3190

UTXO vs Account Model

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

    Block size and Blocktime are reduced resulting in faster processing and lower fees.

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

    The UTXO model is more private as it allows a complete audit trail of the inputs and outputs of all the UTXO’s. You can’t send anything back to yourself. The account model is much simpler, you can see where the transaction came from and where it was sent to, but does not offer the complexity of tracking the history of all inputs and outputs that UTXO offers.

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#3191
  1. because the block size is smaller or there is more space for other data inside of the blocks
  2. with the account model you can easily see origin and destination from tokens. In contrast with the UTXO model it is hard for somebody to find out which address was the actual receiver of a payment and which address is just for the unspent UTXO’s (change)
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#3192
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • We can add more transactions / block (more tx history can be added to one block).
  1. How is the account model not as great as the UTXO model for privacy?
  • UTXO are more private compared to the account model because you can send BTC back to yourself in the same transaction.
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#3193
  1. Blocks can include more transactions, which is crucial for Ethereum as not only ETH but also a large number of different ERC20 token including those of stable coins (USDT/USDC) and DEFI projects (uniswap) are moving on the blockchain.
  2. With the account model, you can see and follow every transaction and how it updates the sender and recipient account. It the UTXO model there can be different outputs at the same time and it is not visible to who and how much gets sent.
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#3194
  1. This reduces the size of the blockchain (just a bit), but is much more important with simplifying transactions.
  2. UTXO model allows for parsing transactions to multiple addresses at once, making it difficult to know which address belongs to whom
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#3195

1 Less data needs to be stored on the blockchain
2 in the account model the coins are fungible, in the UTXO model is more like non fungible and can track down a coin back to the miner, through the output and inputs.

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#3196

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It allows us to add more txs per block

  2. How is the account model not as great as the UTXO model for privacy?
    With the account model it is based more on simplicity vs privacy meaning with Ethereum there is only one output vs the UTXO model which consists of many.

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#3197

1-Saving space is the benefit, you can hold more transactions in each block.
2-The amounts and destinations can be seen in the account model.

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#3198

1)More space for transactions, scalable and faster process of blockchain.

  1. The account model funds are easily seen point A to B transactions and you can’t send money to yourself like UTXO. UTXO can make multiple transactions to accounts and can’t be determined if it’s for yourself included.
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#3199

  1. Because more transactions can be persisted in the block

  2. Because accounts in Ethereum are completely open, whereas UTXO hides them behind the several transactions

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#3200
  1. The benefits of the account model not requiring as much space as the UTXO model is that you will have space for more transactions per block, which in turn would reduce the transaction fees. The requirements for the nodes storage space can be lower than it would have to be with the UTXO model, thus making it cheaper to mine=more miners=better hash power= better security.
  2. The account model is not as great for privacy because you can only send money from one wallet to another (only one input and one output) this makes it a lot easier to trace the money, therefore knowing exactly where the money was sent from and to whom it was sent to. You cant for example send founds back to yourself aswell as to another person like you can in the UTXO model.
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#3201
  1. Transaction sizes are reduced, meaning faster & cheaper transactions, and more transactions can fit into a single block.
  2. Transactions are simpler with Ethereum in that the exact transaction amount is recorded as being sent to a particular address, whereas with the BTC UTXO model of accounting, one transaction includes a balance of both inputs and outputs to & from multiple addresses, making it harder to decipher who individual addresses belong to. That being said, individual BTC may be distinguished from others and in theory have a different value (and even be outlawed if involved in nefarious txns).
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#3202
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • saving space in blockchain is always a benefit, also complex applications / smart contracts on ethereum need more space.
  1. How is the account model not as great as the UTXO model for privacy?
  • it is more easy to track transactions in the account model, exact tx-amount is sent from A to B (no inputs & outputs)
  • higher degree of fungibility on ethereum
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#3203
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • Transactions take less space, so this makes the process easier, more transactions per block
  1. How is the account model not as great as the UTXO model for privacy?
  • Account balances are public, and you can track transactions from A to B.
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#3204
  1. The account model doesn’t need as much space as the UTXO model so it makes TXs faster.
    Besides that you don’t have to save as much data so its more compact and you don’t got this blocksize problem BTC had before.
  2. With the UTXO model you have to send the whole UTXO and get back the change. Nobody knows what the change was and what the spent sum was if you send the change to another address you own. On ETH there is only “person a sends x ETH to person b”
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#3205

1.it is a benefit because the state is saved in nodes, making the information passing through the network smaller and the transmission amounts less.

  1. in the UTXO model users are encouraged to use new addresses for every transaction. Also transaction inputs are always linked to existing UTXO’s’ , making the linked transaction to not be replayed in the same chain, making it easy to verify.
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#3206

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
It is benefit in processing transactions, there is not so much data attached to UTXO or similar coin history representation.

2. How is the account model not as great as the UTXO model for privacy?
In a way it is less great as having.banknotes and knowing serial number of each and every banknote in your wallet. So in case of any wrongdoing, those banknotes can be traced. And even origin and history of that banknotes could be tracable. In that matter, Bitcoin is more nonfungable than Ethereum. It means that each Bitcoin regarding its same nominal value is not exactly same as another Bitcoin.
Ethereum is fungable, it means that each and every Ethereum is practically
equal.

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#3207

  1. Any space savings is a benefit

  2. funds go from 1 account to another account, It’s easier to see who sends to who

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#3208
  1. More space on the blockchain is available for more complex transactions like smart contracts
  2. You can see who is sending how much of what to where because there is no need to send excess funds anywhere
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#3209

The account model doesn’t require much space as the UTXO model, why is that a benefit?
How is the account model not as great as the UTXO model for privacy?

Less space = faster computing.

With ETH’s account model only the coin balance is showed: address A and address B are visible which makes it less private.

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