Homework on UTXO vs Account Model

Ethereum 101
#3932
  1. Lesser space implies more transactions in a single block, thus reducing latency of each transaction.
  2. In account model, you can send single instance of transfer from A to B. In UTXO model, multiple instances of transfer (both to self and others) can be included in a single transaction, thus increasing privacy.
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#3933
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? Faster transactions. More transactions within the block is more efficient with resources and costs.
  2. How is the account model not as great as the UTXO model for privacy? It is less private. With bitcoin you can send money back to yourself with two different addresses. With ethereum you can’t send money back to yourself.
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#3934
  1. cause transaction data can be simpler and therefore take less space
  2. it’s easier to track funds movement and for example is not possible to split a transaction into different outputs, reducing obfuscation
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#3935
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    [Ans] It will take less space which eventually would mean lesser size for transactions and hence less transaction fee. This would also help in saving storage and its maintenance on each node in the network as it will grow at a lower rate.
  2. How is the account model not as great as the UTXO model for privacy?
    [Ans] Account models make the balance directly available without the need for derivation which is the case for the UTXOs model. In the case of Bitcoin, the transactions are made up of input and outputs and it is difficult to identify from transaction what has gone from whom and to who.
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#3936

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefit because the block will be smaller therefore can contain more transactions and cope with more adoption of the network.

  2. How is the account model not as great as the UTXO model for privacy?
    Because all transactions are completely visible to everyone and is more fungible as Bitcoin (it is not possible to send crypto back to ourselves like in Bitcoin for example).

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#3937

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Transactions are more efficient and faster.

  2. How is the account model not as great as the UTXO model for privacy?
    Account model is not great has UTXO because you can only send transaction from one account to the other and multiple transactions can not be send through one transaction(UTXO can send multiple transactions in one transaction) which make it easy to know where and how transaction was made.

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#3938
  1. It gives more space on the block for more transactions to be added
  2. UTXO has outputs and inputs that will have more privacy. When using the account model you have transaction from one to the other and it will show who and how much, less privacy.
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#3939
  1. account model doesn’t store all input transaction, it just change the value (+ / -)
  2. everyone can see all transactions
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#3940
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Blockchain and it’s Nodes are easier to storage this way, smaller size of blocks. Also it’s easier to track balances this way.

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

UTXO model is harder to tell where wich transfer goes, as one transaction can have multiple transfers including inputs (sending to yourself). On Ethereum (account model) it’s different, you can’t send to yourself and outside at the same time(transaction)

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#3941

  • The account model doesn’t require much space as the UTXO model, why is that a benefit? More transaction can be put into a block which provides more efficiency

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

Account model is more traceable, because with Bitcoin (utxo) you can send the coins to multiple wallets in one transaction which makes it more difficult to track while you can’t do that in the Account model (ETH)

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#3942

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Less data means less storage, more efficient blocks, lower gas prices.

  2. How is the account model not as great as the UTXO model for privacy?
    As only deductions are recorded, you can’t disguise a transaction as larger than it actually is by sending yourself a chunk of change back into your account.

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#3943

The account model doesn’t require much space as the UTXO model, why is that a benefit?
=> You save space on Nodes as they have to hold all the transactions that have ever happened.

How is the account model not as great as the UTXO model for privacy?
=> Well, in fact the Account model is better for privacy as coins are fungible once they get into an account. In Bitcoin, UTXOs can be traced back all the way to the miners.

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#3944

  1. It allows for more transactions to fit into blocks leading to faster processing.

  2. Account model doesn’t let you see where each individual “coin” comes from, unlike BTC where you can trace each UTXO individually, giving you the ability to distinguish between different coins.,

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#3945

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

Less space is equal to more transactions in each block, faster to propagate etc.

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

Because there is no notion of UTXO’s on the ethereum account model, there is less privacy.
This means that every Ethereum transaction is always 100% traceable from A to B.

Whereas with Bitcoin’s UTXO model, we can create multiple outputs some of which controled by ourselves making at harder to trace with 100% certainty.

For example if i send a BTC transaction of 1 BTC with 2, 0.5BTC outputs. An outside viewer will not be able to know which 0.5 is spend and which came back to me. Increasing privacy, while still transparant.

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#3946
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Less space needed means more space for transactions per block.
  2. How is the account model not as great as the UTXO model for privacy?
    UTXOs can be traced to every wallet they have ever been through. If that UTXO was involved in something nefarious it may be blacklisted by exchanges making it harder to sell.
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#3947
  1. It allows for more transactions to be submitted per block improving efficiency of the blockchain.
  2. It doesn’t allow for private transactions like the UTXO model does. The full transparency of transactions is unavoidable with the account model.
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#3948

Hi there, my answers are below:

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
So that the Ethereum blockchain has more space to store bytecode of smart contracts

2. How is the account model not as great as the UTXO model for privacy?
Because with the account model, people can tell how much eth you receive or send to another account by tracking your account balance.
UTXO model lets you create outputs to new accounts which other people don’t really know how much btc you send to another recipient or how much change you get back. (except they have enough skills and tools to trace your activities back to the beginning)

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#3949

Homework - UTXO vs. account model

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

Because it will use less data to transfer, meaning less space in the transactions.

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

Because in the account model transactions can be tracked a lot easier compared to the UTXO model. Sending 1 ethereum shows as that you sent 1 ethereum. While if you send a bitcoin you can track where you send it but also have to send the change back to yourself.

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#3950

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Since less space is required the benefit would be that each block may contain more transactions as well as greater smart contract code allowing for faster processing and efficiency.

  2. How is the account model not as great as the UTXO model for privacy?
    In Bitcoin moving your UTXOs to various addresses affords you greater anonymity, however Ethereums process is quite different since it shows a direct balance and exactly who the funds are being distributed to or received by, so privacy is lacking.

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#3951

  1. Reduced space-requirement means that transactions are smaller, which makes them cheaper (as the byte-size matters) as well as faster. Nodes are capable of processing them more quickly. = scalability. More transactions within one block.

  2. The UTXO - model allows you to have multiple transaction outputs - therefore one transaction can be used to transfer cryptocurrencies to one or more addresses, where one address can be associated with yourself. Whereas the account model stores exactly every balance of every account publicly.

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