Homework on UTXO vs Account Model

[prassie]

1. One block can store more transactions.
2. Privacy is not there in Account Model since Transactions can be tracked like who has paid to whom.

[jsd]

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

Faster transactions.

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

We can see the account balance and with UTXO, We can only see the value transferred to a wallet (you can use multiple wallet for more privacy).

[psilva30]

1- It helps speeding up the process

2- UTXO model allows one to send outputs to the same sender as ‘change’ teh acc model just updates the values in the database, there’s no notion of outputs to be spent, just values.

[Mr.D]

1. More space on the blockchain for other features

2. You cannot make several transactions at the same time which makes it easier to trace

[Captaincrypto]

The account model doesn’t require much space as the UTXO model, why is that a benefit?
So that more transactions can be processed, therefore better scalability.
How is the account model not as great as the UTXO model for privacy?
It is more fungible, therefore more easy to trace the transaction. The UTXO model can have many outputs and be received by multiple wallets making it harder to trace.

[leontm]

1. Because it means that it can fit more transactions per block, meaning it has faster transaction time than, for example, bitcoin.
2. Because you can see exactly how much money you’ve sent and where you’ve sent it from looking at the blockchain from the outside. You can also not send funds to yourself and only sent to 1 address per transaction making it easier to track.

[thecil]

@plaxel

Because there is no way for you to hide your account balance in the blockchain compared to BTC.
In BTC you can hide your wallet by sending BTC back to you in the same transaction.

Hello sir, you almost got it. But in BTC UTXO model does not hide your wallet, is just make it harder to track, there are still procedures to keep track of the funds provenance of a wallet (since the blockchain is public, there will always a way to track any wallet funds). While in the Account Model is quite easy to track the provenance of a wallet/account, since you can track “from, to, quantity, hash, time” on the blockchain in a way more simple than UTXO.

Hope this gives you a clear view of the subject, keep learning!

Carlos Z.

[thecil]

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

@Dierkes

Because all the ETC coins you have are the same. In the UTXO Model you need to pass the
previous spending information ( I mean the UTXO’s infos). In an account model you dont need
these infos because you always update the account.

Quite right sir, also the account model require less space than UTXO model because transactions are smaller in bytes, making each block more efficient and faster to mine in order to handle even more different type of data (like smart contracts transactions from dapps).

PD: ETC it’s another cryptocurrency way different of ETH (ETC= Ethereum Classic, meaning it was the first version of Ethereum, you can find a lot of information over the internet to have a better picture).

Carlos Z.

[john_coraline]

1. Because it means it requires less transaction data and storage making it more effective. Requires less computing power

2. It’s easier to follow the transactions through the account model since you can’t have different outputs at the same time. In btc you can have many outputs simutaneously which makes it harder to determine in the blockchain where the btc:s is going

[Calle_Jansson]

1. This is a benefit because this leads to more transactions fitting in a block, thus making the network more efficient.

2. It’s not as anonymous as UTXO’s because it is more transparent from whom to whom the transactions is sent.

[Glenn_CostaRica]

Glenn_CostaRica

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
In the account model – as Ethereum’s --, each user (or each Account) constitutes one individual “data bank”. All information about this user is available “here” anytime, in one place. Each Account would behave as one single node of information, separate and independent from other nodes. When you want to move some funds, what the pertinent transaction does is only subtracting the amount from the sender’s account and adding the same amount to the account of the recipient. The transaction consists of updating information on each individual node separately, without any node pointing towards the other one in any way directly. Each node of information can stay “isolated”. This is very convenient from the perspective of space saving, since we only need as many nodes of information as the number of Accounts to keep the ledger updated. In the case of the UTXO model – as Bitcoin’s --, there are nodes of information too, but each node does not represent a user, or an Account, but the result of a transaction, the actual state of an unspent transaction. If you execute a transaction based on some funds that you have in an old UTXO, the value of the new UTXO derives from the reference of the old one: the old one points against the new one validating it. So, nodes are not users and they are not independent. There can be as many nodes of information as the number of unspent transactions that all users can produce. This transform the UTXO model in a graph made of dependent nodes. The number of nodes, then, can grow exponentially even if the number of users do not rise. The Bitcoin UTXO system operates as a graph where nodes are unspent transactions. And, a graph of this kind tends to grow infinitely. This is inconvenient in termns of memory space.

2. How is the account model not as great as the UTXO model for privacy?
In terms of privacy, the account model is not so convenient, because all the transaction one user has executed are stored in the user’s account, and can be easily verified in the history of his/her account. In Ethereum, for example, so far, it is virtually impossible to obscure one simple transaction. In the UTXO model, there is a chance to cover your trace through some techniques like generating a new UTXO against two addresses, one of which can be mine, since we can manage to obscure the result of this special transaction: we can obscure the path and make it impossible to know how much each of the recipients is getting. Bitcoin offers some more privacy in this sense.

[Enrique]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   It does not store UTXOs is just constantly updating balances
2. How is the account model not as great as the UTXO model for privacy?
   There is no way to send back money to the sender wallet in the same transaction

[Kalx1]

It is beneficial because this will increase speed when sending transaction and also lowers transaction fees. Also less chance for accidental forks.

2. The account model is less private because you can’t send a transaction to someone else and yourself at the same time. This makes it less easier to be obscure.

[simplist]

1. Each node will need to store less. Each block can contain more and move faster
2. In UTXO’s you can have multiple inputs and multiple outputs which allows you to send funds to yourself and observers can’t tell which output account you have control over

[plaxel]

Thanks for pointing that out man, you are right and did not consider that in my answer.

[thecil]

Always a pleasure to read your answers! your killing it sir!

Carlos Z.

[Hectorgato]

1. In Eth, you have a simpler model.The Eth Block Chain will share all transactions and each Tx updated account. Eth Txs are saying move from A account to B account saving space but in the UTXO model all the UTXO’s are added requiring more space. It also makes Eth more fungible because you cant track every single output because there is no notion of an output in Eth. Therefore you don’t have the same traceability as Btc.
2. In the UTXO model I have more privacy because someone looking from the outside would have no real way of telling which output goes back to me and which goes to recipient. So I could pay myself along with paying recipient.

[Seth]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Smaller transaction size allows for more transactions to be completed simultaneously which makes transactions faster and if the Ethereum fees are also based on a fee per byte model then fees should also be less

2. How is the account model not as great as the UTXO model for privacy?
The account model has less privacy as an outside person can see exactly how much is in an account and the addresses to which those transactions were sent. With the UTXO model, UTXO’s over the amount of the transaction are sent back to the senders wallet with a different address. This makes it impossible for someone on the outside to know which UTXO’s are going to the recipient and which UTXO’s are being sent back to the sender.

[RailGame]

• The account model doesn’t require much space as the UTXO model, why is that a benefit?
  Smaller amounts of data per block means that more transactions can be confirmed per block.

• How is the account model not as great as the UTXO model for privacy?
  With UTXO’s, funds can be sent simultaneously to someone else and to yourself so that it is difficult to see exactly how much of your 'balance" is actually being spent.

[ADABOY]

1. More room on the block chain for other things like smart contracts among other things as well as Faster transactions.
2. In the Account model transactions are only A to B so it is easy to deduce which funds went to who and there is no money that gets sent back to the sender.The UTXO process is a bit more convoluted and you can have various inputs and various outputs Making impossible to know which UTXOS went to the receiver and which went back to the sender.