Homework on UTXO vs Account Model

Ethereum 101
#3351
  1. It will have better network performance and would be less likely to hit block limits.
  2. With utxo’s it’s difficult to identify the sources(inputs) and destinations(outputs), so it is more private
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#3352

1.less space more Tx, more transparent Tx , fungiable

  1. UTXO model has multiple inputs and numerous outputs while ETH has one clear indication of address A to address B per Tx
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#3353

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    That’s a benefit because it leads to more data that can be stored in each block, and faster transaction time.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model is not as great as the UTXO model in terms of privacy because it literally transfers from account A to account B without the whole Input Output mumbo jumbo. This means theres easier traceability of each transaction – less privacy.

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#3354

  1. The account model requires less space than the UTXO model. This is a benefit because more transactions can be held on a block because there is fewer data per account-model transaction.

  2. In the account model you are only changing a number (your balance), which means the traceability on a wallet to wallet basis is much easier to track than a UTXO model. in the UTXO model, you can send unspent transaction back to yourself (amongst other transaction) and there is no way for an outer party to tell which UTXOs went where.

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#3355
  1. Saving space means more transactions can be done on the blockchain at the same times and they can be faster.
  2. Using the UTXO model we can split a transaction which can be sent to 2 different addresses or both to the same address. We cannot see this on the blockchain so its more private.
    Account model is faster but the transaction cannot be split so we can see the address the ETH has been sent from and the address that received that ETH.
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#3356

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    A: A lot more transactions can be processed per block on the Ethereum network.

  2. How is the account model not as great as the UTXO model for privacy?
    A: Ethereum transactions are simple fund transfers usually from one party to another, which are easier to trace, unlike the UTXO model where one transaction can involve using multiple UTXOs as the source of payment and result in the output of multiple UTXOs to several parties, including the initial contributor. Also, the fact that smart contracts stipulate who and when payments should be made to, it offers no transactional ambiguity and clearly identifies the Ethereum accounts involved.

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#3357
  1. It’s a benefit because it makes ethereum more efficient and more transparent.
  2. You can see exactly where the money is going to in a transaction while in BTC some money can be addressed back to your account
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#3358

  1. The less space required for the account model, is a benefit because it means less information needs to be stored on the blockchain and means that the blockchain can be more scalable.

  2. The account model is a little less private in the sense that everyone can see the sender/receiver of transactions. There is no sending coins to your own address(which can muddy the waters a bit in terms of knowing who is who). The account method is easier to follow than the UTXO method which makes it a bit less private.

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#3359
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Reduces the size of the blockchain (database) and therefore increases speed.
  2. How is the account model not as great as the UTXO model for privacy?
    Ethereum transactions can only be sent to one other account. It is public from which a coin is sent and to which account received it. This is different than the UTXO model where one transaction can go to multiple accounts in a single transaction and thereby achieving obfuscation.
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#3360

1- Transactions are not as large as in Bitcoin, so you can fit more transactions into a single block. This can lead also faster transactions.

2- You cannot send coins to multiple accounts in a single transaction. They are either your own accounts, or all of them are recipient’s accounts noone can tell. But in Ethereum, you can only send coin to one account in a single transaction.

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#3361
  1. Smaller transactions mean more transactions included / block and less overall space requirements for nodes.
  2. A transaction can only have one recipient as opposed to the UTXO model therefore transactions can be tracked more easily with the exact amounts.
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#3362
  1. Blocks can store more transactions
    2.In UTXO you can have several outputs and inputs and the same time and hide through that to whom and how much you are sending
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#3363

because you’re not taking up so much space with the UTXO’s their is more space on the block which makes it faster and more efficient.

With the UTXO model there is the input and outputs, you can have multiple, including to yourself this makes it harder to track. with Eth its a single transfer and easier to track.

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#3364
  1. Account model allows to be more scalable (pack more txs in one block). It leads to smaller fees and slower growing of blockchain size.
  2. Account model does not allow to send coins to multiple addresses in one transaction what lead to decreased privacy (you cannot hide recipient inside multiple transactions).
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#3365

1- It is way more simpler and can process faster and more transactions within a block.

2- Because as the transactions are based on utxo’s, they needs to be split into different adresses because of partial amounts of the utxo’s, so it is hard to tell who the adresses are.

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#3366
  1. More space is allocated on the account model which enables codes to written easier, making the system more efficient
  2. The account model indicates which transactions went where while the UTXO model doesn’t indicate the which went where
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#3367
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Takes up more transactions in a block
  2. How is the account model not as great as the UTXO model for privacy?
    You can’t remain completely anonymous. The public can trace the sender by observing transactions
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#3368

  1. All else equal, a transaction on the account model does not need to add up all UTXO’s as inputs, which consume additional space on the block. The same goes for the output of a transaction, as there is no need for a second output for ‘change’ if the sum of UTXO’s exceeds the amount being sent to the receiver of the transaction. On an account model, there is a simple deduction of balance from the senders address, and increase in the receivers address. The calculation of an addresses balance is far simpler on an account model.

  2. The UTXO has superior privacy as you can not distinguish between the addresses of the outputs of a transaction. This means that when there is more than once output on a UTXO transaction, all of the UTXO’s could be going outbound to a foreign address, or some of the funds could be returning to the sending address. Or all of the funds could be coming directly back to the senders address, through multiple outputs. With the account model, the receiving wallet of a transaction is clearly defined and an entity auditing the blockchain can easily identify which wallets are receiving what, and when; and also their balance. An account model blockchain (e.g. Ethereum) is more transparent than a UTXO blockchain (e.g. bitcoin), however this comes at the cost of lesser privacy.

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#3369

1.More txs in the block.
2.Because we can see the transfer of balance from which wallet to which wallet.

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#3370
  1. more transactions can be processed and verified
  2. you can track the address / account balances, whereas in the UTXO model a transaction con have multiple outputs
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