Homework on UTXO vs Account Model

Ethereum 101
#3952

1/One block can store more transactions, increasing storage capacity and faster processing thus increasing the scalability of the blockchain
2/For the account model you are either sending money to someone else, or to another address you own. With the UTXO model, you can ‘mix’ transactions together, doing multiple transactions to both you and someone else. With Ethereum we can see exactly what amount was sent and to which address. It is less private than BTC, because with Bitcoin we can send funds to multiple addresses simultaneously making it difficult to tell the recipient.

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#3953

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?
    More transactions can fit into a block for better scalability.

  2. How is the account model not as great as the UTXO model for privacy?
    It has one output vs UTXO having multiple outputs, which could include yourself. The account model is easier to track transactions.

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#3954

1.you can fit more transactions in a block, thus the adoptability and confirmation time improves.
2. Less anonymous, easily to track the wallets and the movement of eth between them. Can’t send the money back to yourself.

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#3955

The account model doesn’t require much space as the UTXO model, why is that a benefit?
Because it takes less place to code and write in a programming language. And the transaction doesn’t have input and output which makes it smaller.

How is the account model not as great as the UTXO model for privacy?
Because you can send a transaction to yourself in the account model.

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#3956
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

It’s a benefit because it allows the block to contain more txs.

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

It’s not as great because the utxo model offers complete anonymity whereas the account model is public

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#3957

  1. The account model requiring less space helps with transaction times. There is less space for previous information a UTXO would have and more space for transactions.

  2. When you have a UTXO you cannot tell which output went to who. Where as with the account model you are just adjusting the numbers in the account which makes it easier to trace.

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#3958
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

You just have to update numbers in the blockchain for ETH. Transactions are taking less space so you can put more transactions on one block.

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

In the UTXO model you can move the UTXo’s to different addresses even including yourself while with ETH you have a balance from received coins and where it can go to so there will be less privacy in this case.

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#3959

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

Smaller blockchain. Easier to see balances. Takes less resources to execute transactions.

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

Less ambiguity around transaction recipients, intent of transactions is clearer.

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#3960

UTXO vs Account-

  1. Less data per block. Faster and cheaper fees.

  2. Can’t send money back to yourself and someone else at the same time. Balances are public.

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#3961

  1. We don’t have to worry too much about the full block issue we talked about in Bitcoins and blockchain.

  2. You cannot send like multiple outputs at a time, including those that go back to you. You don’t have to send any amount back to you because you send a specific amount. Ethereum network is more simple by just updating balances instead of tracking transactions and seeing where your balance came from. No UTXOs in Ethereum.

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#3962
  1. More transactions per block which would make transactions faster and blocks more efficient
  2. Each transaction can only have one output vs. the utxo model which can have multiple outputs making it more difficult to trace.
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#3963

  1. More transactions can be stored, so it will scale easier

  2. You can clearly see how much money was sent in each transaction.

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#3964
  1. Its smaller, cheaper, faster processing and easier transferable blocks.
    2.With an account model it is easier to associate transactions issued by the same party.
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#3965

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

  • The account model being smaller in space is a huge benefit considering it takes less time to process and sparing more space for other transactions.

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

  • The account model directly transfers the transaction to the recipient and records how much and to whom it was sent. It is easier to trace the transactions because you can directly read the address of the recipient and the amount sent. Unlike the UTXO model, you cannot trace how much was sent. You can trace to whom it was sent in the UTXO model but now how much. You can also trace back further on the UTXO model and check if it is bad or not.
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#3966
  1. This is a benefit because it makes the amount of information that is allowed on a block to contain more transactions than a bitcoin block. The size of the transactions are smaller, and therefore more fit per block.
  2. With the UTXO model you can disguise the amount you send to people by sending some bitcoin back to yourself. With Ethereum this is not possible, as all that happens is accounts get updated in balance. When you send to someone its clearly visible what amounts your accounts updated.
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#3967

The benefit of the account model is that you can store more transactions per block, which is good for scalability.

With the UTXO model, all bitcoin in an address must be sent. Of course, the receiver will get their bitcoin, but the remainder that is left over in a UTXO address will be sent to a new UTXO address that belongs to the sender. To someone who is viewing the blockchain, it is difficult to differentiate between who is the receiver in a UTXO transaction, and who is the sender (the person who receives the remainder in a new UTXO address). Of course, this is good for privacy. Under the account model, it is much easier to tell who is the sender and who is the receiver. This makes the account model less private.

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#3968
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

It takes less space so it runs faster.

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

It can be seen how much ETH has been sent in one transaction and to who.

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#3969
  • it is more simple - takes less space so needs less computer power and storage. Just and update the balance on the smartchain database.
  • the transaction is simple and direct, while the input and outputs from UTXOs in BTC means you can pay money back to your self in the same transaction as you pay others, so a little less private.
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#3970
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    it can provide better scalability; in theory, transactions with smaller sizes would require less capacity; thus the nodes can run more transaction in a space of time.
  2. How is the account model not as great as the UTXO model for privacy?
    everyone can see the balance, sender and receiver easily ; without tracking back previous blocks and without allocating multiple transactions in one block; in this sense is less secure and less private
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#3971
  1. This increases the speed of the network and makes the code more simple to write
  2. In the account model it is possible to see exactly who sent how much money and where. The UTXO model, however, is not so clear and there can be multiple outputs going to multiple inputs.
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