Homework on UTXO vs Account Model

Ethereum 101
#4033

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    This is a benefit because miners can get more transactions into a block, and this promotes mining to individuals which strengthens the network as more individuals are likely to get involved in the process.

  • How is the account model not as great as the UTXO model for privacy? You cant send funds to yourself so you will see where the funds are going. Much easier to track.

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#4034
  1. Lower fees and more transactions per block
  2. Your account keeps a balance, money either leaves it or enters it
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#4035

  1. It is a benefit because the account model has more efficient memory usage as it only requires the account balances to be saved instead of keeping all the UTXO’s in order to compute the total balance of every user. Also the transactions in the account model are much more smaller because they only need to specify the sender, the receiver, the transfer amount and a single digital signature, unlike with the UTXO model where all the change outputs of every transactions have to be kept. The UTXO transactions specified the state of the system after every transaction which includes all the newly generated transaction ouputs, which means that more data has to be included. Also, every transaction may consume several UTXO’s as inputs. In the accounting model, the account transaction only psecifies which account balance to deduct an amount from. Another benefit is that it would be faster to get nodes online as less data is needed to syncronize them. Also, the number of accounts inthe account model will be also smaller thanthe total amount of UTXO at a system level.

  2. The UTXO model makes it very hard to link transactions as change addresses are always used which makes the tracking of the ownership of coins harder compared with the account model. A new generated address doesn’t have a known owner, requiring advanced chain analysis techniques to link that address to a single user. Instead, the account model encourages address reuse which makes it easier to track the history of a single user.

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#4036
  1. It is of benefit because having more space means that more transactions can be carried out more quickly.
  2. utxo has more privacy since when making a payment there is almost always a “change of return” and this makes it impossible to trace who that wallet belongs to.
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#4037

  1. The account model does not store each utxo it just stores the balance of the transactions. This makes it faster and take up less space to verify and validate transactions.

  2. The account model is less secure than the utxo model. The account model only shows what account the transaction came from and was sent to. Uou can"t see the history or past transactions of the coin. The UTXO model allows you to see the history of me Bitcoin. You can also hide the identities and can send some back to yourself.

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#4038

  1. It allows higher storage efficiency, since each block can store more transactions.

  2. You can follow every transaction in the account model, whereas for the UTXO model you can have multiple outputs.

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#4039

  1. More data can be input into blocks. Better storage optimization.

  2. Privacy is not as good because everything can be tracked and you can not send back certain funds to yourself. With UTXO you can send to multiple places and send back to yourself as well.

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#4040
  1. the blockchain carries less transaction information. this helps to speed it up
  2. you cannot send money back to yourself. this means that everyone can see exactly what others have.
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#4041

  1. The account model doesn’t require as much space as the UTXO model. Why is that a benefit?
    More transactions can be stored in each block which increases the scalability of the blockchain.

  2. Why is the account model less private than the UTXO model?
    More transparent and simple.

Account model:

  • A transaction has 1 input and 1 output
  • Identifiable wallets
  • Identifiable amount of coins/tokens

UTXO model:

  • A transaction can have multiple inputs and outputs
  • Unidentified wallets (one of the receiver wallets could be the same as the sender wallet)
  • It’s not clear how the coins/tokens were divided between all the receiver wallets
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#4042

1 More possible miners, smaller blocks, making them faster.
2 ETH is less private, but at the same time is more private, because of BTC tracings.

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#4043

  1. Each block can carry more transactions.

  2. In the UTXO model you can funds to yourself and to someone else, but it is impossible for an outsider to know which is which.

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#4044

Homework on UTXO vs Account Model - Questions

The account model doesn’t require much space as the UTXO model, why is that a benefit?
A benefit of the account model using less space than the utxo model is a boost to computational ability and speed. Because ethereum miners and nodes do not
have to look up all of the utxos to determine a “balance equivalent,” they can more readily validate coin usage. This probably also causes ethereum mining to be less
energetically costly.

How is the account model not as great as the UTXO model for privacy?
The account model allows ethereum users to see who sent money to who. Contrasted to bitcoin, where you can see transaction inputs and outputs but not recipients, ethereum
allows you to see what was sent and to whom. You can backtrace who sent money to whom, as well.

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#4045
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

This is a benefit because we spent less resources to retrieve the balance and interact with another smart contracts

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

Because with the account model we can’t track the coins at granular level,and the accounts are updated the balances and we can see quickly the balances from different accounts

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#4046

  1. TX’s happen faster, more can be fulfilled.

  2. With lots of inputs and outputs you can make it harder to find you and those you transact with. Where as in ETH there is only one tx from one account to the other.

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#4047
  1. The account model requiring less space than the UTXO model is a benefit because, just like a Bitcoin block, an Ethereum block is limited in size as well. But if more transactions can fit into a single block due to less space consumed, Ethereum transaction fees tend to be lower than in Bitcoin.
  2. In the account model, when coins or tokens are transferred between two users (addresses), the balances of both addresses are just updated on the ledger. The funds have simply moved from one account to another account, and the money flow between accounts can be traced well on the Ethereum blockchain. For user identification, one would “only” need to know which user controls which account(s). The UTXO model allows for a bit more privacy since in Bitcoin it is possible to spend BTC and transfer BTC between own addresses within a single transaction. So from the outside it is harder to determine the amount of UTXO the sender still controls, versus the amount of UTXO that was authorized to be spent by a different receiver.
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#4048

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    less space used means more data efficiency

  2. How is the account model not as great as the UTXO model for privacy?
    There’s a clear code showing what amount was sent to where.

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#4049

  1. you can put more transaction on a block

  2. there is no way to back-track all the transaction that happend with that coin

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#4050
  1. because you only change the balance and can not see where previous transaction came from
  2. because you easily see where the money comes from and what is the balance left
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#4051

  1. The Ethereum nodes don’t have to keep record of all previous transactions for each coin. This theoretically speeds up the network and reduces storage.

  2. UTXO model allows multiple recipients in the same transaction thereby limiting visibility of who received what.

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#4052

Faster finality, as miners can include more transactions into their block. These means also less fees and better scalability.

Because one can see exactly which address has transferred what amout to another address. The transactions aren`t split anymore.

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