Homework on UTXO vs Account Model

Ethereum 101
#3250
  1. Bc the tx are smaller and so it’s less consuming for miners so that permit to reduce fees for users
  2. Account balances are public.
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#3251
  1. This is beneficial as it allows for smaller, faster and much more economical transactions to occur which results in a much more efficient ecosystem. (theoretically)
  2. Account model transactions have a single output destination whereas UTXO can have multiple outputs.
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#3252

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    This is a benefit because it is a more simple model and easier to express in code allowing to only update numbers in the database.

  2. How is the account model not as great as the UTXO model for privacy?
    With the account model, transactions only update the balances or the account itself and it is easily determined which accounts have sent you money but you cannot send money back to yourself. With UTXOs you are able to send money to someone and to yourself all within the a single transaction.

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#3253
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    faster transactions, cheaper
  2. How is the account model not as great as the UTXO model for privacy?
    every transaction can be more easily traced on the blockchain
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#3254
  1. The account model doesn’t require as much space as the UTXO model, why is this a benefit?

Compared to the UTXO model, a transaction in the account model contains less data, hence requires less storage capacity and can be processed faster. This enables more transactions to be saved in the same block space as compared to the UTXO model, which opens the possibility to proceed more transactions per second and have a higher data throughput. Since the account model has a more efficient memory usage, less data (corresponding to less time) is required to get new nodes in synch with the network (when comparing two networks, account & UTXO, with identical transactions).

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

In the account model, a transaction can only be made between two accounts, from the sender to the recipient. It is public to see which account has transferred how much funds to another account. In the UTXO model, a transaction can consist of numerous inputs and the funds can be sent to numerous recipients, possibly including an address that belongs to the sender of the funds. This makes it much more difficult to trace funds to a specific address and thus induces a higher level of privacy as compared to the account model.

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#3255

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

By adopting the account model instead of the UTXO model, the Ethereum network can save space in blocks allocated to storing transactions (no longer necessary to keep track of several different inputs and outputs of a transaction) and focus more on running smart contracts, which require a lot of storage.

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

From my understanding, the account model does not have multiple inputs or outputs within a transaction because you can just transfer the exact amount of Ethereum to someone else and subtract from your own account the amount that is added to the recipient’s account - there is no need to add up the UTXOs, send extra change back to yourself, etc.

This is unlike the UTXO model, where you can have several different recipients in a transaction and it is impossible to tell if one or more of the receiving addresses actually belong to a specific individual. With this model, there is greater privacy with regards to the recipients’ identities.

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#3256

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? Probably the two most obvious benefits to the account model would be the increased number of transactions per block and network speed. Also transaction fees should be smaller but that is not actually the case.

  2. How is the account model not as great as the UTXO model for privacy? Since the account model ties an account to an individual, it is possible that the person or entity associated with an accont could be identified. Also, you can’t send ETH from yourself back to yourself in a single transaction like with Bitcoin, so following transactions might be easier.

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#3257
  1. More transactions per block.
  2. You cannot as readily send yourself Ethereum in the same way you can Bitcoin.
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#3258
  1. Because faster transaction processing
  2. UTXO model (BTC) : quasi non fungible, you can track at coin level so you can know when a BTC has served for fraud,
    whereas Account model (ETH) makes ETH fungible (all coins are the same) and you can track balance and transactions but not at coin level (account code and ballances are public)
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#3259

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

  • wallets do not have to sift through the growing chain of past transactions to understand how much to send.
  • the blockchain node file grows slower.
  • Smaller queries allow for smaller fees due to the more efficient transfer of less data.

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

  • You cannot obfuscate the identity of who is receiving what quantities of the currency, it is clear in the account model that an amount of a coin is being sent from one account to another account.
  • the account code and account balance are public.
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#3260
  1. This results in less space required in the blockchain
  2. You cannot send transactions back to yourself to obfuscate who is receiving what amount.
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#3261

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    it is not tracking every transaction the same. In BTC blockchain you cant trace more a coin further back. All the UTXO’s of that coin are on the blockchain. In Ethereum you just have accounts. Some can see this account has X and got that X from ABC, but not where ABC got that Ethereum they sent X.

  2. How is the account model not as great as the UTXO model for privacy?
    In the account model funds are only transferred from one account to another, not to multiple accounts. One can not send funds back to themselves to “mask” where funds are going. Everyone can see X’s account received funds from Y’s account, but X can not also send funds back to his own account.

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#3262

  1. The account model doesn’t require much as the UTXO model because only the balance is shown but no UTXO transactions. Each transaction just updates the accounts but there are no notion of UTXOs, so the transaction takes up less space.

  2. The account model is not as great as the UTXO model for privacy because it is fungible. Since it is fungible, it cannot distinguish between each coin and therefore cannot be banned if nefarious transactions occur. It also sends any unspent UTXOs to a “change” wallet, and it therefore is more difficult for someone to know which of the addresses sent to are new individuals vs the sender’s change wallet.

2 Likes
#3263
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Full nodes data growth is slower, less space = less fees (as the fee method is per byte of data), blocks can include more transactions

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

The account model uses only 1 input and output, therefor it’s easier to track where funds came from/ are going to. Transactions simple update a balance. As with the UTXO model, you have a change wallet, a tx can output 4(or more)utxo’s at once. It’s harder to track which wallet its senders, recievers, change,…

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#3264
  1. The account model doesn’t require as much space so every transaction is smaller, blockchain node file grows slower, smaller transactions mean smaller fees.
  2. The account model is not as great for privacy because there could be dummy transactions, balances are public, and account code is public.
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#3265
  1. The system is compect and quicker.
    2.you can do multipule transection at one time in Bitcoin including your self . but in ethereum you can not send money to your self.
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#3266
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Less space requires less computing power and storage and therefore less processing time making it speedier.
  2. How is the account model not as great as the UTXO model for privacy?

Transaction history can be traced completely and more easily.

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#3267

1.- The use of a simpler way to update, translate in less use of space so every block of the chain can have more transactions that at the end is beneficial to the system velocity.

2.- though the UTXOs are possible to track the way the system of Bitcoin work help to hide where and how much is transfer, because normally there is more than one output, but the Ethereum blockchain is more direct and the one transaction that we see is clear so anyone can see the transfer of coins without any distractions.

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#3268

  1. The benefit of using the Account Model in Ethereum is that by not having to store the UTXOs on the blockchain it frees up more space in the block resulting in faster transaciton times.

  2. The privacy issue in the Account Model is that anyone can see the address of who is making and receiving the transactions, where the UTXO model there is mutilple input transactions and the possibility of multiple output transactions giving greater privacy as to who is sending and receiving the transactions.

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#3269
  1. The account model makes transactions faster on the blockchain.
  2. Transactions on the account model just updates account balances
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