Homework on UTXO vs Account Model

Ethereum 101
#3691
  1. It makes the network faster
  2. The account model doesn’t let you send money back to you on the some transaction. Therefore anyone can see how much did you send and to which address. Also you can not blacklist one single ethereum coin.
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#3692

  1. It can handle more transactions.

  2. The account model allows tx information such as address that sends or receives funds to be visible. The UTXO model model prevents one from differentiate which accounts a tx belongs.

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#3693

The account model is faster and more efficient than UTXO model.

Because of the smaller space that the account model transactions need there are more space for more transactions. Smaller transactions are also faster and require less resources.

Account model transactions are more transparent than UTXO transactions.

Looking at transactions on Ethereum network from outside the transactions are more specific.

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#3694

  1. it benefits because doesn’t take as much space in the block size, therefore it won’t run into problems with scaling

  2. in the account model, one transaction goes to one place, there are multiple streams of utxos that make it harder to trace

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#3695
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Simplicity - It’s a simpler model. Efficiency - The account’s transactions are smaller because each transaction only needs to validate that the sending account has enough balance to pay for the transaction.

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

UTXO’s you can see exactly where each transaction in coming from and it can be traced back to the miner. With the account model it is less private because you cannot see which individual coin represents which transaction. You can only see which accounts have sent you money.

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#3696
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

–> it is faster and more efficient since not the history of the transactions needs to be checked eveery single time

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

–> you cannot connect the transaction to a specific “coin” but you can tell which accounts send and receive this specific coin. In UTXO multiple streams of transactions within one transaction is possible (harder to trace)

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#3697

1- The simplicity of the account model increases the overall efficiency of the network by eliminating the need of storing the whole tx history of each unit of currency (eth in our case).
2- The account model decreases privacy due to the fact that the transactions sender and receiver can be fully identified.

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#3698

1.- Because it allows to save space in storage files, thus making the network more efficient.
2.- Because coins are not traceable, they got a fungible property under account model.

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#3699
  1. As the account model doesnt require as much space as the UTXO, the benefit is you can fit more transactions into one block as each transaction takes up less space.
  2. The account model is not as good for privacy as you can see exactly where a coin came from and how it was sent/where it was sent
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#3700

-With less space on the Blocks theoretically more transactions can be made in less time with fewer fees
-In the UTXO you are able to send BTC back to you and to other addresses in the same transaction, while in Account model that is not possible

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#3701

  1. One block can store more transactions than with the Bitcoin blockchain.

  2. Ethereum doesn’t have as good privacy as Bitcoin because it doesn’t use UTXOs which allow multiple outputs to different wallets and it can be difficult to trace who’s wallet is who’s where as on Ethereum it just updates the account balance to show who is sending and receiving money when the smart contact is complete.

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#3702
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

More transactions fit in a block.

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

UTXOs are harder to interpret, because there can be multiple UTXOs. On Ethereum you can directly see who sent what and where.

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#3703
  1. This is a benefit as more transactions can fit into one block on the ethereum blockchain.
  2. The account model is not as great as the UTXO model for privacy, as you can only see senders and receivers in transactions, compared to UTXOs, where it is hard to trace accounts but easier to trace individual coins, all the way back to when they were mined.
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#3704
  1. because there is no need to sum up all the utxo’s and output them to another adress rather just input of 1 eth transferred from a to b
  2. because it is impossible to send 2 transfers and 1 be to yourself in the same incognito magnitude possible in utxo form
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#3705
  1. less space = faster execution
  2. all transactions can be tracked, therefore if someone sends tokens from their wallet to another of their own wallet, we will still be able to see where that came from originally. On BTC network, the addresses change making it impossible to identify if some of the transactions were sent back to yourself.
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#3706
  1. saving space on block level will lead to smaller blocks witch will propagete much faster to other nodes in the blockchain.
  2. Transactions will go from A to B, and they are more transparent as you can not send the ETH back to your self.
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#3707

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Both, the accounts as the UTXOs are part of every block on the blockchain. The bigger the data is, the less can be put in one block. This makes the process of blockbuilding slower and more expensive.
    Furthermore, the smaller size of the account model allows the blockchain to store more information such as smart contracts and their states.

  2. How is the account model not as great as the UTXO model for privacy?
    In the UTXO model there are no actual balances on the blockchain. Only by indicating all the UTXO to one wallet, the balance can be summed up. Additonally, a sender can receive from its own tx and from outside no one can see who it is.
    The Account Model updates every balance after a “transaction”. It is much simpler: A sends to B. But everybody can see that A sent to B at a glance.

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#3708
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit : The account model basically tracks the balances between transacting accounts and not the number of UTXO’s that makes up a balance for the specific user address.
  2. How is the account model not as great as the UTXO model for privacy : On a UTXO model one cannot track from the block transaction information who has received the funds where in an account model there is more visibility on transaction details between different accounts.
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#3709
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

A benefit for this would be the addition of the smart contacts and the possibility to reduce the cost of transactions, because calculation the UTXOs of thousands of transactions could be cpu resource intensive for miners/nodes.

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

Transactions can be linked easier on an account model. Since they could be linked to a particular wallet and there is a balance check review of the data. So if one wallet is sending money to other wallets, these transactions could be tracked on the ethereum

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#3710

  1. Makes it easier to express in code and in text. Less granular than the utxo

  2. Because the account model allows to see what address sent a token and the recipient, a lot more simple. UTXO model transactions can be sent to another wallet and back to the sender in a single transaction and from the outside you cannot tell which transaction is doing what action so there is a bit ambiguity/privacy there.

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