Homework on UTXO vs Account Model

Ethereum 101
#4073

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    a. It requires less space because the blockchain doesn’t have to save all the UTXOs with their history and instead just accesses a wallet balance directly. This is a benefit because it uses less ressources to save and retrieve that data. It is cheaper to save (Uses less space and so on gas), the blockchain stays smaller which is easier downloadable by nodes and it is easier for wallet to just get the balance instead of going through all the UTXOs

  2. How is the account model not as great as the UTXO model for privacy?
    a. Ethereum is more fungible since it’s impossible to track the funds to the miner/origin as you can with bitcoin. When 2 people sent the same amount of ETH to 1 Address, you don’t know which amount came from where. You just have a balance.

#4074

  1. The account model is typically less noisy so there is very limited “shady business” going on as 1 ETH is 1 ETH on all networks, whereas 1 BTC may not be the same as 1 BTC on the network because of hacking, blacklisting, etc.

  2. The UTXO model has a lot of privacy because you can’t tell how much money is sent because someone can send bitcoin to himself and somebody else in one transaction so nobody knows how much is sent and who is it sent to in one transaction. Whereas the account model, you can trace back all transactions sent to other people directly, there is no partial sending in one transaction.

#4075
  1. Better network performance.
  2. Less privacy
#4076
  1. The account model used in blockchain technology, such as the one used by Ethereum, requires less space than the UTXO (Unspent Transaction Output) model used by Bitcoin. There are several benefits to this:
  1. Lower storage requirements: The account model requires less space to store the blockchain data, which can lead to lower storage requirements and lower costs for running a node. This can make the blockchain more accessible to users who may not have as much storage capacity.
  2. Easier to program: The account model is easier to program and reason about than the UTXO model. This is because it treats transactions as transfers of value between accounts, rather than as the manipulation of transaction outputs as in the UTXO model. This can make it easier for developers to create smart contracts and other applications on the blockchain.
  3. More efficient: The account model can be more efficient for certain types of transactions, such as those involving multiple inputs and outputs. This is because the account model allows for more complex transactions to be processed in a single step, whereas the UTXO model requires multiple steps to process the same transaction.
  1. This is because the account model reveals more information about the transaction participants.

In the account model, transactions are recorded as transfers of value between accounts. Each account has a balance that reflects the amount of cryptocurrency it holds, and transactions involve updating the balances of the accounts involved. This means that when a transaction occurs, it is clear which accounts are involved, and how much cryptocurrency is being transferred between them.

In contrast, the UTXO model is based on the concept of unspent transaction outputs, which are the individual units of cryptocurrency that are available for spending. When a transaction occurs, it consumes some of these outputs and creates new ones as change. This makes it harder to determine which parties are involved in the transaction, as the inputs and outputs are not linked to specific accounts.

#4077
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

The account model is a simpler model for recording transactions in a blockchain network compared to the UTXO model. In the account model, the balance of each account is maintained in a central ledger, and transactions involve updating the balances of the sender and receiver accounts. This means that the amount of data required to represent the state of the blockchain is smaller in the account model, which can be a benefit for scalability and storage requirements.

In contrast, the UTXO model requires each transaction output to be treated as an independent and unspent transaction output, which must be tracked and verified independently. This requires more data to be stored and verified, which can be a challenge for larger blockchain networks.

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

One of the key benefits of the UTXO model is that it provides greater privacy for users compared to the account model. In the UTXO model, each transaction output is unique and can only be spent once, which makes it difficult to trace the flow of funds through the blockchain network. This provides some level of anonymity for users, as it is difficult to associate a specific transaction output with a particular user.

In contrast, the account model maintains a central ledger of account balances, which makes it easier to trace the flow of funds through the network. Each account has a unique address, which can be linked to a particular user, making it easier to track their transactions. This makes the account model less private compared to the UTXO model.

#4078

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

    This is because the account model only stores balances, and the transactions only say how much money has to be moved from wallet A to wallet B. On the opposite, a UTXO transaction needs to track all the UTXOs in input and output, which makes the transaction much more heavy. This is a benefit because transactions occupy less space, so the network is faster and transactions are cheaper.

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

    With the UTXO model, in each transaction you send money to somebody else and to yourself at the same time, so it’s more difficult to track you and understand if a certain UTXO went to you or to somebody else. Since with the account model the blockchain stores balances, it’s much easier to track people’s money and balances.

#4079

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Blocks can include more transactions, which is crucial for ethereum which has hundreds of ERC20 tokens settling on the ETH blockchain.

2. How is the account model not as great as the UTXO model for privacy?
UTXO Model: The UTXO model inherently provides a higher level of privacy compared to the account model. Since Bitcoin transactions consume specific UTXOs, it can be challenging to link individual inputs and outputs, making it harder to trace the flow of funds between addresses.

  • Account Model: In Ethereum’s account model, transactions are more transparent as they directly update the account balances. This transparency can make it easier to analyze and trace transactions on the Ethereum blockchain
#4080

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

Simply speaking because the account model is a lot easier, is not composed by the combination of the UTXO’s, it’s just an address and balance. Each transactions is smaller it takes less space, it’s easier to propagate it through the network, that means lower transaction-fee.

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

Because both your balance and your account address are public, you can’t easily transfer back moneys to your account in a sort of dummy transaction

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#4081
  1. Speed? Efficiency? Performance?
  2. Because you can not shadow a transaction by sending it both to you and to somebody else, without actually knowing who got what.
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#4082

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

  2. How is the account model not as great as the UTXO model for privacy?
    UXTO doesn’t identify the owner of the coin. Account models shows balances of each account.

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#4083

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 makes the block faster and you can fit more information on it.
  2. How is the account model not as great as the UTXO model for privacy?
    It compromises a privacy, because transactions is just moveing and accout beeing updated, not like BTC where you can send back the change to your self.
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#4084
  1. The benefit to not requiring as much space is that less information needs to be sent for each transaction, thus speeding up the transactions per second as well as increasing the amount of transactions able to be sent per block.
  2. With the account model it is easier to trace where coins are going vs with the UTXO model you could be sending transactions to multiple places and these are non identifying. Although the BTC network is more traceable with UTXOs it is more anonymous and thus secure in your personal privacy.
#4085

[quote=“filip, post:1, topic:8445, full:true”]
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?
    A. It makes it where more transactions can occur by condensing the transactions to create more space

  2. How is the account model not as great as the UTXO model for privacy?
    A. Transactions in ethereum is not a special transaction. 1 eth is equal 1 eth, there are no special eth unlike bitcoin.

#4086
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • Blocks include various inputs to confirm the the UTXO, accounts have tokens with a set value on the chain which is fixed and uniform. Thus reducing block size and making it faster
  1. How is the account model not as great as the UTXO model for privacy?
  • It’s very poor at handling traceability, scalability and verification of initial transaction and is susceptible to double transactions. UTXO has a stateless environment which in turn encourages users to use a new address for every transaction thus improving privacy
#4087
  1. The lesser the space consumption the better
  2. The UTXO can be tracked but the account model does not have a history so its difficult to track
#4088

  1. Hardware requirements should be less and processing speed is greater.

  2. Account model clearly show exactly what coins went where. UTXO model is more ambiguous.

#4089

[quote=“filip, post:1, topic:8445, full:true”]
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?
faster accessibility to data.
storage spaces is less.

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

  1. account model keeps a running balance Shows transaction from person A to person B.
  2. UTXO do not.
#4090

  1. The account model of the Ethereum blockchain uses less space than the UTXO model and therefore results in efficiency. Running a full node requires less storage space which may allow more entities to run a full node. It can also allow faster synchronization times, allowing the whole of the network to be updated quickly. Additionally, an account model can theoretically promise lower transaction fees due to this efficiency and simplicity.

  2. The account model has some drawbacks when it comes to privacy because it is not as private as the UTXO model. All addresses and their transactions can be viewed on the Ethereum blockchain which allows the easy tracking of funds.

#4091
  1. The account model allows space saving which means blocks can include more tx’s, and the network can run faster.
  2. In Ethereum wallets there is no “change”, meaning you do not have multiple outputs from your transaction. This makes it easier to track transactions than on a UTXO model.
#4092

1. The account model doesn’t require as much space as the UTXO model, why is that a benefit?
The account model in blockchain is like having a digital wallet that shows just your current balance. It’s like looking at your bank app to see how much money you have right now. This model doesn’t need much space because it’s only updating one number: your total balance. It’s beneficial because it’s like having a sleek, lightweight wallet that’s easy to carry around. This means the blockchain network can work faster and more efficiently, much like how it’s quicker to check your bank balance on an app than to go through every single transaction you’ve ever made.

2. How is the account model not as great as the UTXO model for privacy?
The account model for blockchain, while efficient, is a bit like having a transparent piggy bank where everyone can see how much money you put in or take out. Every transaction from your account is visible and clearly linked to you. On the other hand, the UTXO model, used by Bitcoin, is more like using cash. When you spend cash, you get change back, and this change is essentially ‘new’ money without a clear history. This model makes it harder to trace all your spending back to you, giving you more privacy. It’s like paying for things in cash and getting different bills as change each time, making it difficult for someone to track your entire spending history.

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