Homework on UTXO vs Account Model

Ethereum 101
#3651
  1. Because it will allow for more transactions on each block and make the network faster.
  2. Because you can see exactly where a transaction is going in terms of addresses whereas in the UTXO model you can send to more than one address and you will not know which is the transaction and which is the surplus of the UTXO.
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#3652
  1. It makes the network faster, can fit more transactions in a block, allows you to use that space to code some functionality, does not overload the nodes with too much data, and also makes the Ethereum more fungible than the BTC UTXO model.
  2. UXTO model provides a higher level of privacy, as it can combine transactions and send funds to multiple parties simultaneously. So there can be several outputs in one transaction.
    On the account model, you see a balance so you only need to track the balance history. By doing so, you can see how much money was sent/received from a given account and how did that affect the balance.
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#3653

  1. The Ethereum account model don’t require as much space as the UTXO model and that is a benefit b/c transactions are faster.

  2. The account model is worse for privacy b/c when a transaction is sent the accounts are just updated with the new amount.

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#3654

Homework on UTXO vs Account Model – Questions

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

Main benefits:

  • Smaller transaction sizes
  • More transactions can fit in a single block (as a result)
  • Smaller transaction fees (since there are fewer bytes to pay for)
  • Wallet balances are easier to update and to read (no summing of UTXOs)
  • Ethereum coins are more fungible thanks to Account Model (compared to less fungible Bitcoin with UTXO model)

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

The account model is not as private as the UTXO model because you can track the address of a payee, while with the UTXO model one can pay out multiple accounts with one maybe even being one’s own.

The account model is not as great as the UTXO model for privacy because there are no outputs. Each transaction can be seen from the outside, how much was sent, and to whom. With the UTXO model, you can have several outputs at the same time and can hide, to whom and how much you are sending.

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#3655

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Using less space on the blockchain means faster throughput, faster confirmation, a faster network.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model maintains a balance rather than adding up all of the UTXO’s. The UTXO model allows for multiple outputs which can belong to the ultimate recipient and/or the original owner.

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#3656
  1. Absent of UTXOs in order to transact making it less space in the block.
  2. Can not send funds to self similar to BTC UTXO model and all of ETH are the same (1ETH = 1 ETH) Therefore can be known and tracked.
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#3657

  1. It’s a benefit because all the space you can save makes the blockhain more lightweight. Making for example hardware specifications to run a node, lower.

  2. In UTXO model, one single input can have multiple outputs, whereas in Account Model, you have a visual representation of where the money came from, and who went to.

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#3658

1- Since a UTXO transaction specifies the state after the transition (the newly generated transaction outputs), it needs to include more data than an account transaction. It may also consume several UTXOs as inputs, whereas the account transaction only specifies which account balance to deduct an amount from.

2- When it comes to privacy, there are merits to both the UTXO and the account model. The UTXO model makes it harder to link transactions, whereas the account model provides better fungibility.

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#3659
  1. The account model is much simpler than the UTXO model and takes up less space making transactions more lightweight (faster/cheaper)
  2. It is not as good as anyone can see how much has been sent in a transaction and knows that the receiver has received that exact amount where as this is not the case with utxo model
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#3660
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because the account model does not need to take care of all the UTXOs(a transaction could consist of many) where as the account model have lesser need(account A, account B, amount). This would give a faster overall network which is a benefit.
  2. How is the account model not as great as the UTXO model for privacy? Transaction in ethereum using the account model is more transparent when it comes to seeing where a transaction goes and comes from. In the UTXO model it is not as visible.
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#3661
  1. It takes up less space in transactions, thus more transactions per block. This leads to a faster processing pace.
  2. With the UTXO model, transactions are less easy to follow. You can for instance send money to yourself and people wouldn’t know. To do this with an account model, you’d need two different accounts.
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#3662
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It allows for a more efficient and faster network model.
  • How is the account model not as great as the UTXO model for privacy?
    It does not allow for multiple sends in transaction including one to yourself essential creating an anonymity layer. With the account account model there is more transparency with which address is sending and receiving.
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#3663

1: Using the account model over the UTXO model means that network full nodes can operate as intended, that is by individuals instead of data centers.

2: In the account model, the sender sends the funds directly to the one receiving it. In the UTXO model, you can send transactions to yourself, which is harder to differentiate from sending it to someone else instead.

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#3664

Each block can include more transactions which make it more efficient to run on the network.

The account model is much easyer to trace, its from one peer to another. With UTXO tracing you would have alot more trouble tracing it as it can have multiple outputs.

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#3665
  1. Large space savings because every transaction need only make one reference and one signature and produces one output thus resulting is more and faster transactions.
  2. Unlike UTXO, Account model does not have change addresses thus it it is easier to track a ETH/ERC20 address.
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#3666

Homework on UTXO vs Account Model - Questions

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Answer: 1. Account model does not save each UTXOs as it stores only the balance of the transactions thereby reducing size and the block processing is faster.
  2. How is the account model not as great as the UTXO model for privacy?
    Answer: The model literally just compares balances between one retriever and one receiver hence the privacy is slightly lagging behind on the Ethereum Blockchain. Whereas in the UTXO model in one transaction alone (which represents my new balance) i could send different amounts to different people (including myself) simultaneously and I wouldn’t be able to see which amount goes to who.
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#3667

1). ETH’s TX’s require less space in the block as compared to BTC. There are no TX I/O or UTXO’s. This makes TX’s happen quicker.

2). You can’t send money back to your self in a more conspicuous way such as with BTC. You would have to send money from 1 account to the same account and we can all see where the $$ is going.

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#3668

  1. it can be faster that way. include more tx, therefore it might be more scalable.

  2. because each tx goes directly to one wallet and changes the wallets balance.
    With UTXOs in BTC it is not visible which one of the transaction went in what amount to which wallet.

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#3669

  1. The less space a transaction requires the better. It makes the blocks smaller and the total size of the blockchain smaller. A smaller blockchain lowers the hurdle for anyone to run a node, which encourages more nodes to be run, which in turn makes the network stronger.

  2. For every account in the account model it is plain to see which account you have sent funds too. There can be only one output, so you cannot send funds to yourself (unless you happen to own both the sender and receiver account). In the UTXO model you can have any number of inputs and outputs so it is easier to mask who the actual recipient of any funds are. In the UTXO model an address is commonly used only once, whereas in the account model address reuse is implicitly encouraged, which makes creating a transaction history for a single user easier.

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#3670
  1. It makes the blocks smaller and faster to create.
  2. Because anyone looking at the blockchain, can see how much is send and to which address thereby knowing the account balance.
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