Homework on UTXO vs Account Model

Ethereum 101
#562

1.-
Updating the amount on each account by that way the process is much more simple and doesn’t implies the use of much space on the database.

2.-
Because each transactions show exactly the basic elements of each transaction, amount, from, to.
In the case of UTXO is not quite possible or easy, to know which is the amount representing an expense or simply a transfer between accounts of the same user.

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#563

  1. It makes programming the code much easier and allows for much more transactions per block. This allows more space for each node to store not only a copy of the full blockchain and transactions, but also every validated smart contract and the states of each of those contracts.

  2. BTCs UTXO model often has multiple outputs in the hash function which allow for more anonymity among which address is which (the sender or receiver). There is also no address account balances listed on the BTC blockchain, whereas there is in the Ethereum blockchain. In this way, Ethereum is more fungible.

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#564

1. The account model doesn’t require much space as the UTXO model, why is that a benefit? That is a benefit because more transactions can fit onto the block, thereby improving transaction speeds and reducing transaction costs.

2. How is the account model not as great as the UTXO model for privacy? The account model, which is used by Ethereum, is not as private as the UTXO model, which is used by Bitcoin, because the account model doesn’t allow users to simultaneously send funds to multiple addresses and back to themselves.

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#565
  1. It allows one ether to be worth one ether at all times as opposed to bitcoin who could have some bitcoins worth less then other depending on the previous transactions that can be traced by its utxo’s
  2. Because you can’t pay back to yourself on the same transaction, creating it to be much easier to trace
#566
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Space saving are always beneficial. Blocks can therefore include for more transactions. Faster processing and transfer.

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

It is not the same anonymously in ETH. Everyone can track the address being paid. It is therefore easier from the outside perspective to see where the money comes from and where it goes. In Bitcoin when they use UTXOs you can send money so someone and at the same time to yourself (in the same transaction). This is not possible in ETH account model.

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#567
  1. The account model doesn’t have to store all the transaction history. It just has to store the account balance, thus reducing the size of the block.
  2. Every single bitcoin can be tracked to its origin, unlike ETH. Also, the exact amount of transactions can be updated by just changing the balance, and hence there isn’t any anonymity.
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#568

  1. it is much simpler to program -1 from account A and +1 at account B, than to assigning multiple UTXO’s to and from different accounts

  2. An account model can see who is sending money where, where UTXO has no way of knowing which is which when I send money to someone and back to myself, there could be multiple receivers.

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#569

  1. It leads to smaller transactions which in turn have smaller fees

  2. The account model is easier to know where money came from and where it was sent to

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#570
  1. Smaller data to send and store around nodes.
    More can be sent together (if that’s done in Etherium).
  2. You can’t split a payment and disguise by sending to multiple wallets at once.
    Although at least you can’t track transactions over time as the values can be mixed with others making them indistinguishable to where they hailed from.
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#571
  1. Faster TX/s
    2.Account model you can track addresses but in UTXO you can send to multiple accounts at the same time.
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#572

  1. Faster transactions

  2. Because it‘s not possible to have several outputs for one transaction in the account model. Hence, you can‘t send some funds to yourself, when sending funds to someone. In the account model you will clearly see which funds went into and out from one address.

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#573
  1. The account model is simpler, so each transaction just updates de balance, so there is no UTXO and therefore they take less space.

2- In BTC you can send BTC’s to yourself and other receptors in one single transaction without anyone from the outside identifying which one is which. With ethereum, anyone in the outside can see exactly how much ETH’s you send and to which addresses

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#574

  1. Because less space is always a benefit. If a node needs to download the blocks there will be a lot less to download and such.

  2. Because you can see the funds go from point a to b you cannot send some to yourself so people do not know who or what the funds went to.

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#575
  1. More transaction per block. Lighter to run.
  2. Because you can’t send money back to yourself in one transaction without being obvious.
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#576

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

Hello sir, 1 ETH will always be equal to 1 ETH, so as 1 BTC = 1 BTC, and why the account model does not require much space than the UTXO 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).

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

Carlos Z.

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#577

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

Because transactions do not exist in ethereum’s architecture, ethereum cannot distinguish between each coin. This makes it more fungible.

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

In Ethereum, the sender sends the exact amount of funds to the receiver, therefore there is no abstraction.

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#578

  1. This makes the blockchain ‘lighter’ as it chas to contain less transaction data.

  2. The account model only allows for transfer of ETH from one account to another, both of which can be publicly view on a blockchain explorer. In the UTXO model some of the output can go to one wallet, some to another wallet and some back to the same original address and it is not possible to distinguish which of the transactions is which.

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#579

  1. Less space = faster network, faster transactions

  2. Because UTXO model can be traced all the way back to the miner when the first UTXO was created. With ETH thats not possible because there are no UTXOs, the balance just updates when a transaction is made.

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#580

  1. It saves space on the blockchain and makes transactions more efficient. Higher transaction throughput per block may be achieved.

  2. It is easier to see if someone sends money back to themselves in a transaction. This is more difficult to see on on UTXO model with multiple transactions.

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#581

  1. you can fit more transactions into the block, faster processing and transaction confirmation time.

  2. It is slightly less private as you can’t send anything back to yourself, you can see how much was sent. There is more traceability.

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