Homework on UTXO vs Account Model

[shiv1]

1. Any space is great
2. Because you can’t trace the coin history.

[GrettaIsBack]

1. Data requiring less space can make the blockchain more efficient and scalable, at first glance (depends on other factors and implementations, but in short, enhances the possibility of that).

2. On the account model Ethereum uses, each address has a easy to check balance and transactions goes from a clear sender to a receiver, being easier to track the flow of transactions and know exactly what happens with any account associated with an address. While in an UTXO model you can have multiple outputs from many UTXOs, including sending money back to yourself, that way making the chain analysis of an address or flow of money a bit harder and not so straight-forward such as in an account model.

[aakash03]

Hi @filip
I couldn’t understand the Non- Fungibility argument for Bitcoin
I understood that the UTXOs are traceable but how would it affect the Bitcoin Value
and in what scenarios- 1 BTC != 1BTC

[tutatenso]

1. That prevents congestion issues and high gas fees due to saving memory
2. In ethereum account model its hard to track each token since a single transaction can handle many tokens, however, its very easy to track the single transaction, causing less privacy from account a to acount b. In bitcoins UTXO model every utxo can be tracked if needed, however, its harder and takes more time.

[sarah1]

1. More transactions can be stored with less memory, this increase the scalability of the blockchain.
2. UTXO’s can be traced back so you know exactly where it came from all the way back from when the coin was mined. The account model is based on the balance and can not be traced back.

[Retekh]

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

Now more transactions can be stored on each block.

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

Because you can track who sent what transactions to who. Unlike with UTXO’s on bitcoin which it’s hard to tell what transactions are sent where since some are sent to yourself.

[Retekh]

@ivan

Why can UTXO’s be traced all the way back to the origin (when the miner mined it) if it is hard to tell where someone sent a UTXO? Since they can send it to multiple people and their self without someone else knowing where it was sent. Why can you trace it back to origin but can’t see where one UTXO transaction went?

[VickyP]

1. More transactions can be processed and stored more efficiently.
2. Using UTXOs you can send part of a transaction back to yourself and the balance
   is not stored on the blockchain. For the account model the balance is updated
   whenever a transaction occurs and you can see what was sent and where it went.

[AndreGu]

@filip

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

Smaller transactions mean that more transactions can be processed in a certain period of time. This also allows for lower transaction fees.

@filip

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

The account model provides less privacy than the UTXO model. In the UTXO model, you always need to spend all your bitcoin even though you’re paying only a small part of the bitcoin there is in your wallet. Some of this will return to your wallet in change. The UTXO system also allows you to perform various transactions in one. This creates a fog of transactions. In the account model, the transaction is simply subtracted from the balance. The account model is definitely easier to understand, for laymen like me and for auditors.

[idaB87]

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

• to reduce the load on the network and save space

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

• it shows the wallet addresses of transaction and does not allow for multiple outputs, making them traceable; utxo allows sender to return some of transaction amount to self in addition to payee(s) which makes it less obvious where the money flows.

[euanmiller93]

1. It takes up less storage space. Which means things can be executed quicker on the blockchain.
2. You will be able to know who sent which ETH to another. With UTXO’s you can send a portion back to yourself or others which makes it harder to track.

[Rameshsampang]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   a. Eth transaction move from A to B very simple and you just update number in data base which is the blockchain. so there is no notion of UTXO, which makes trasactions are taking less space.

2. How is the account model not as great as the UTXO model for privacy?
   a. It has clearly shows one adress to another adress , everybody able see how much is out and recieved in Blockchain.

[Adrienn_Rimbauer]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   You can store more transactions in one block.

2. How is the account model not as great as the UTXO model for privacy?
   The account model is a transfer from A to B and it is only your balance that will be updated. Anyone can view the transactions and could trace all transactions. ETH is fungible. While UTXO combines transactions and can send them to multiple addresses at the same time and the sender is anonymous.

[kenny_escobar]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   A// That is a benefit because if less space is require it means there can be more blocks in a transaction and it would be a faster procedure.

2. How is the account model not as great as the UTXO model for privacy?
   A// The account model is not as great as the UTXO in privacy because it is only move funds from one account to another so is very easy to track , in UTXO model one transaction can have 2 or 3 outputs where the funds come from.

[Goran75]

1. Having transactions that take less block space benefits the network in many ways like up scaling on transactions, faster times, lower fees.
2. This model effects privacy by showing exactly the origin and destinations of all transactions

[CRYPToNi4e]

1. The Ethereum account model utilizes less space therefore more transactions can be included per block, this helps with scalability.
2. The account model not as great as the UTXO model for privacy as the Ethereum account model shows the individual transactions 1 input = 1 output. The UTXO model however can have a single input with several outputs this is harder to track which helps with anonymity.

[Jasonm444]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   It decreases transaction time and fees and increases the amount of tx’s in each block

2. How is the account model not as great as the UTXO model for privacy?
   The UTxO model tracks each UTxO to its output address which can be sent back to you, increasing security by adding a layer of unknown addresses. The account model tracks the address to whom the ETH was sent to directly so you can track addresses much easier

[RedPa]

1 it is a benefit because it decrease tx weight and therefore there can be more txs in one single block, improving scalability.

2 every transaction on bitcoin is divided into 2 different txs: one that goes to the receiver and one that goes back to the sender with the utxo. it is not possible to determine which of the two txs goes where. it is an additional privacy layer that ethereum does not have

[Opalhazel11]

• The account model doesn’t require much space as the UTXO model, why is that a benefit? - It is less space for transactions, and easy to move in code and text

• How is the account model not as great as the UTXO model for privacy? Its fungable, which can not track or distigish the coins, no privacy because you can see who and where the money goes.

[Yinka]

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?

It allows for more transactions in each block.

2. How is the account model not as great as the UTXO model for privacy?
   With UTXO model, outputs are usually multiple and there is no way to tell the ones that comes back to you or goes out. Account model loses this privacy feature.