Homework on UTXO vs Account Model

[Cryptojunkie]

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

• Its a benefit due to the decrease in block size resulting in less gas fees and more efficient speedier transactions

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

• The UTXO model is more complex to trace as there are not only many small transactions but also you could cause confusion to anyone trying to track funds by sending transactions to an account held by yourself. On the other hand the Account Model has much more transparency and is easily tracked as the whole transaction is visible to all on the blockchain in the exact amount sent or received

[JanjoHR1]

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?

• Because of the decrease in size of the block and more efficient transactions.

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

• In the account model we could see all of the transaction details who is sending which amount and where, while in UTXO model we could send even funds back to ourselves and in such a way increase our privacy.

[SatoshiOkoto]

• The account model doesn’t require much space as the UTXO model, why is that a benefit?
  This allows more transactions per block increasing the transaction speed and costs.
• How is the account model not as great as the UTXO model for privacy?
  Because you don’t work with UTXO,s but just with updates making an account model.
  This means that the ETH you send just goes to the receiver without going back to you.
  This makes your address easier to find.

[Jippo13]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   an Ethereum account-based system are:

• a global state stores a list of accounts with balances, code, and internal storage
• a transaction is valid if the sending account has enough balance to pay for it, in which case the sending account is debited and the receiving account is credited with the value
• if the receiving account has code, the code runs, and internal storage may also be changed, or the code may even create additional messages to other accounts which lead to further debits and credits.

2. How is the account model not as great as the UTXO model for privacy?
   The benefits of accounts are:

• Large space savings : because every transaction need only make one reference and one signature and produces one output
• Greater fungibility : because there is no blockchain-level concept of the source of a specific set of coins, it becomes less practical to institute a redlist/blacklisting scheme
• Simplicity : easier to code and understand, especially once more complex scripts become involved
• Constant light client reference : light clients can at any point access all data related to an account by scanning down the state tree in a specific direction

One weakness of the account paradigm is that in order to prevent replay attacks, every transaction must have a “nonce” and the account must keep track of the nonces used.

In general, the benefits of UTXOs are:

• Higher degree of privacy : if a user uses a new address for each transaction that they receive then it can be difficult to link accounts to each other
• Potential scalability paradigms : UTXOs are more theoretically compatible with certain kinds of scalability paradigms

[Stefan_Guse]

1. It allows for more transactions per block which results in a higher throughput of transactions per second in the network.

2. The account model clearly displays from and to which accounts the money is transferred. With UTXO, since we may have many outputs, it’s not that obvious who the actual recipients are.

[cryptofreedom70]

1. Due to the account model with Ethereum the transactions become more faster then. You can also store more transactions in the block.

2. Because you have account model will Ethereum you can see transcription from account A to B. Only the balance will change which means you have fungible transactions , you can track all addresses who paid who. With Bitcoin on other hand when you have UTXO model you can pay out multiple accounts which one or more can be your personal ones. Privacy is more stronger with Bitcoin.

[Pavel_Bandilov]

1. Blocks can include more smart contracts.
2. Because the account model is transferring the money from one account to another and everyone can see the amounts of the money that can be transfer and their final destination.The UTXO model combine all transactions so it is difficult to see the real transaction and final destination.

[shannonp]

1. The account model does not require as much space as the UTXO, so the benefit would be more storage space.
2. The transactions on the account model cannot be sent to yourself they go from one account to another account and are easily tracked. The UTXO you are able to send one transaction to multiple people including your own.

[thecil]

Excellent answers sir! keep it like that

Carlos Z.

[DeCryptolorian]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Lessens the amount of space needed per transaction, allows for more transactions per block, and provides faster throughput.

2. How is the account model not as great as the UTXO model for privacy?
UTXO provides greater privacy. For instance you can send to multiple addresses and it is harder to track. It is hard to connect accounts back to an individual user. So it may look like a transaction is being sent to 4 people, but instead it’s just you.
With Eth, you have a TX that adds or removes your balance and it is fully audited. It shows the exact address, and the person who relieves it. Harder to hide where it is going.

[tulitea]

1. It is a benefit because then the blockchain does not contain, let’s call it garbage transaction data, in turn it allows that space for smart contracts data to exist.

2. The account model makes it easier to track the address of who has been paid, and how much. Bitcoin is a lot more anonymous.

[Kingsman]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   The transactions become faster and you can also store more transactions in the block.
2. How is the account model not as great as the UTXO model for privacy?
   Because the account model is transferring the money from one account to another and everyone can see the amounts and final destination. The UTXO model combine all transactions so it is difficult to see the real transaction and final destination.

[CryptoRealNews]

1. Account model of Ethereum is simpler (balance model) than BTC utxo model (unspent transaction pointers) making each transaction much smaller in size which equals faster transactions. Also more fungible than utxo model.

2. Account model doesnt allow payment from ONE transaction to two or more Recepients (or outputs). This made utxo less trackable and account model more transparent.

[Istevini]

1. Because it reduce block sizes
2. It’s not possible to send various output with a single transaction meaning that it is crystal clear in the block-chain which address sent a certain amount of ether to another. For instance, it’s not possible to send back money or to hide how much money has been sent to the recipient.

[SlayMaven]

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

It would allow you to fit more transactions within a block and does not require as much storage on nodes for transactions. It also makes transactions faster. It allows more scalability (ERC-20 coins as well as users) and transactions within the network.

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

In the account model a transaction goes from input point A to output point B. This allows you to see exactly where the transaction came from and went. In the UTXO model you can create many inputs and outputs in one transaction, and in a way shuffle around UTXO’s. For example you can create an input(s) and send funds to pay for a service while at the same time sending a UTXO(s) back to wallet which you control. By doing so it makes it more difficult to determine which UTXO’s actually went to other parties and which UTXO’s you sent back to yourself.

[Bananoid]

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?

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

1- Because nodes carry much less information, so there’s more space for transactions, contracts and contracts states.

2- The account model works with transfers between accounts, one at a time, so you can follow the account and see specific transactions made to specific accounts. On the other hand with UTXO’S you have multiples inputs and outputs in the same transaction making it harder to track.

Español

1. El modelo de contabilidad no requiere tanto espacio como el modelo UTXO, porqué es esto un beneficio?

2. Cómo es que el modelo de contabilidad no es tan bueno como el modelo UTXO en privacidad?

1- Debido a que los nodos cargan con menos información dejando más espacio para contratos, estado de los contratos y transacciones.

2- El modelo de contabilidad trabaja con transferencias entre cuentas, una a la vez, por lo que puedes seguir el rastro de una cuenta específica y sus transacciones a cuentas específicas. En cambio con las UTXO’S se tienen multiples entradas y salidas volviéndolas difícil de seguir.

[Davide_Coltro]

1. Because you can do more transactions and they are faster.
2. You can’t send eth to yourself like in btc. You can send eth from A to B.

[Clinton]

1. Transactions are faster because less data is required.
2. Single inputs and outputs exist with ETH allowing anyone to view the sender and receiver.

[Bifin]

1. Faster transactions. More privacy and is fungible.

2. Individual accounts ,who sent and who received, involved in the transaction can be seen by the public.

[Dylan22]

1. This is less complicated than the UTXO model which involves many outputs and will allow more TX to be added to a block.

2. There are no change wallets in the account model.