Homework on UTXO vs Account Model

Ethereum 101
#3411
  1. It’s saves space thus making the block faster to process.
  2. You can’t send funds to yourself as payments or change.
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#3412

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    lowers the storage and bandwidth requirements for nodes

  • How is the account model not as great as the UTXO model for privacy?
    With the account model you can see the balance and transaction in each account clearly and can possibly attribute it to an entity while in the UTXO model it is difficult to determine the sum total of the “holdings” that someone has because the holdings are represented as possibly many UTXOs on the blockchain.

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#3413
  1. It is a benefit because every Ethereum node runs a full version of the blockchain, space/storage is precious.
  2. All transactions/addresses are public and can be readily viewed. You can see Who was sent money and How much.
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#3414

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

It’s a benefit because it means blocks can include more transactions, and space-saving is a benefit. As the network full nodes are meant to be operated by individuals rather than data centers the lower the data requirements the more potential participants.

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

The account model is not as good for keeping transactions private because it’s simply a transfer from one account to another. Anyone can view the amounts and destinations for all transactions easily. Someone would just need to learn who owns a particular address to trace all other transactions connected to that address back to them. While in the Utxo model the coin does not have an owner, if the user utilizes a new address for each transaction they receive, it will often be difficult to link accounts to each other.

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#3415
  1. Because of the fungibility of the account model, each asset is always the same as others in the blockchain.
  2. Because with the account model, you can’t send funds to yourself anonymously.
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#3416
  1. It doesn’t have to keep the details that the UTXOs model needs to arrive the wallet’s balance
    2… As its shows the account balance readily on the blockchain. The UTXO model does not
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#3417

  1. The account model requires less space than the UTXO model therefore it requires less power to verify (prove) the transaction. Less energy than the UTXO model also as hashes do not need verification.

  2. The UTXO model is slightly less fungible as you can track the money trail back through UTXO strings on the blockchain whereas in the account model it is more fungible (interchangeable), or private as it is difficult to count which ether came from where. Once in your wallet account balance the Ether is pooled and your wallet delivers and account balance, unlike in Bitcoin where the unspent UTXO’s become your balance.

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#3418
  1. this way the block size issue doesn’t have to show up as often
  2. In the account model every aspect of the transaction is completely transparent whereas with UTXOs, since you can send UTXOs back to yourself, it’s a little more private.
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#3419

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Transaction data will occupy less space within a block

  2. How is the account model not as great as the UTXO model for privacy?
    Because Ethereum transactions are simpler in that it debits the sender and credits the recipient in a singular transaction. There aren’t multiple outputs that obscure the intended recipient from transactions sent back to the sending wallet.

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#3420
  1. This can allow for smaller block size and allow for more transactions to go through.
  2. UTXO model can have multiple addresses when you send bitcoin making it hard to tell where it is sent or how much was sent to who, ETH just updates the balances of each account so it is easy to tell what is being sent where
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#3421
  1. So you can fit in the code and the stae of the smarts contracts.
  2. Because when you send BTC you are able to send it anonamously but the ETH you are sending it to a specific address.
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#3422

1.block can have more transaction and size block making it faster
2. it is easy to track the address but in UTXO it pay out mutilple account outputs

#3423

The account model doesn’t require much space as the UTXO model, why is that a benefit?
because this allows for each block to be smaller effectivly helping miners get it onto the network faster

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

because you cant see where each coin came from but since Ethereum sends a set amount from one place to another you can track addresses who have already been paid

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#3424

Questions:
. There will be more space available for transactions to occur and there is less data usage meaning transactions can occur more quickly and are less expensive.
. The account model has greater transparency as it is possible to view how much has been sent as well as the identity of the sender and recipient.

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#3425
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

More space frees up more space on the blockchain for transactions and smart contract code, making the network more efficient.

  1. How is the account model not as great as the UTXO model for privacy?
    The UTXO model means transactions include multiple inputs and outputs, which are impossible to trace to individuals, where as in the account model payment goes from one account to another in one step.
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#3426

Less space for transactions means more transactions can be done faster in the same block.

With UTXO model you have a full information on all inputs and outputs which also means not all bitcoins are fungible meaning some bitcoins could be blacklisted if proved to be stolen or hacked. However privacy comes when outputs can be payments to oneself who controls a different wallet.

#3427
  1. Less Space = less computing power and storage -
  2. Less Security
#3428
  1. Smaller block could be processed faster, less space, less memory which means scalability as well.
  2. All the ETH transactions are easily traceable as an amount goes directly from one account to another . Not possible to sent to different accounts : own and strangers in the same transaction because the concept UTXO doesn’t work here.
#3429

1… because its a simple update of the balance and space saving
2. because you can trace TX completely where with UTXO on BTC you can send in one TX to tons of ppl.

#3430

The benefit is that it saves block space and transactions will be faster than the UTXO method.

It isn’t as great because you can only send funds 1 account at a time. But with UTXO’s you can sent it to multiple accounts including yourself.

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