Homework on UTXO vs Account Model

Ethereum 101
#41

Reduces over head and valuable block space.

The account method is a simple ledger type of tracking method where as the UTXO
is specific to blockchain address’s.

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#42

I got in doubt and I would appreciate if someone could help me to understand this:

  1. In the example Ivan gave with regard to the kid and the grades as a condition to get the money I could not get to understand who would be in charge of inputting the grades to the contract. Would not it be a way of manipulating the contract?
#43

Yes it would be a way to manipulate the contract. I’d see this can be approached from two angles.

  1. Make multiple choice tests on the block chain. These test would grade each student and this verified information could be used by the contract.
    Or
  2. This validation of data would come through an oracle (a provider of data). This conformation of data accuracy is referred to as the “oracle problem”.Projects like $link among others are looking to solve this through staking nodes upon specific API’s that provide data. The idea is if the information is found to be inaccurate there is a financial penalty through the forfeiture of $link found in the transmitting node. Alternatively accurate data is rewarded by receiving payment from the contract that is requesting the data. This provides incentive to the transmitter of data through a specific oracle to keep this data accurate.

If this answered your ? please like it so I know it helped.

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#44
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Because the UTXO model keeps track of each transaction that an individual piece of Bitcoin travels from its inception to its ownership at the current date. Each satoshi unit has a unique identifier. This, in essence, makes not all BTC equal (if the BTC comes from hacks or dark web activity). This is what makes OTC transactions of BTC attractive to savvy investors because they can have some say upon the quality of the BTC. Whereas ETH using the accounting method simply lumps the contents into each account as ETH is all made equal.

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

The UTXO model enables you to send a transaction to more than one address while not showing how the amounts were allocated to each one.

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#45

1 The account model doesn’t require much space as the UTXO model, why is that a benefit?
The account model benefits in less space than bitcoin’s UTXO’s enabling ethereum to be able to process transactions quicker than bitcoin despite etehreum’s current scaling issues.

2 How is the account model not as great as the UTXO model for privacy?
The account model is not as good as the UTXO model for privacy simply because ethereum’s account model allows instant traceability transactions. If i send you one ethereum, my account is deducted by one and the receivers account is addition by one. UTXO has many inputs and outputs to each transaction making the tracing process a lot more complex.

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#46

The account model could serve to benefit the customer’s in need of exchange of currency as well as the infrastructure that supports the desired transaction. The first benefit is the lightweight single transaction required to transfer assets. The second benefit is the weight to the supporting infrastructure for the transaction. Accounts are just like currency while UTXOs are a form of currency that is divisible and requires an equal number of transactions per division.

UTXO’s can be significantly more private than accounts payable if a new address is created for the change that is not attributable to another human.

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#47
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    **UTXO shows all unused transactions while Account only shows the balance which is updated not appended therfefore reducing the block size making it faster **
  2. How is the account model not as great as the UTXO model for privacy?
    In the account model, we can tell the recipient while this is not obvious in UTXO because one can make multiple payouts including the holder address thus creating confusion regarding the recipients, .
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#48

1.The account model takes less space than UTXO which results in a more simpler and faster transactions

2.With a UTXO transaction the coins can be sent to a recipient and a split is returned, the UTXO is not a balance of any one wallet
The account model each wallet has a balance, so easier to link

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#49

  1. Because you can use the space that each block has ( that would otherwise be used by transaction data ) for other applications; in this case for code that operates the smart contracts.

  2. The account model delivers more fungibility, yet since there are no UTXO’s that send a payment back to yourself, it has a lot less data to be analysed. It’s easier to see what address is doing payment to what address. In a UTXO model there are many transactions that must be unravelled before you can track the source of each individual coin.

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#50

  1. Block size is limited and by using the account model you can enter more transactions into one block

  2. Because in UTXO model you will always work with the same amount which was in input. Ex. you have a 10$ bill but you need to pay 6, so in UTXO you will see 2 transcations for 6$ and 4$ (if you need to pay only to 1 person). With this your privacy is more protected because it is unknown if you paid 6 or 4 $.

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#51

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Transactions are leaner, which makes them faster and more efficient.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model increments and decrements account balances in order to move funds. This results in a loss of privacy as the network’s transparency makes it easy to determine exactly who the senders and recipients are. The UTXO model has a degree of anonymity as it does not maintain specific user balances, but instead tracks inputs and outputs to bitcoin addresses. However, if a bitcoin user is associated with a specific address then it may be possible to unravel that user’s transaction history.

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#52

  1. It takes up less space in the block. Also, you can’t distinguish between coins. So 1Eth = 1Eth

  2. It is not good for privacy because it is a lot easier to see where the Eth ends up. Where as with UTXO you have to track down each bitcoin.

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#53

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
More transactions per block, less network traffic per transaction, simpler to write and understand.

2. How is the account model not as great as the UTXO model for privacy?
With an account model it’s much easier to track all the transactions tied to an individual as a person is likely to have a small number of accounts (or just 1) and all transactions are tied to that account. In the UTXO model you don’t necessarily know which UTXO’s are associated with which person as UTXO addresses are generally used only once, but Ethereum accounts are reused many times.

(Again Ivan’s version seems slightly different, I suggest updating the all the homework questions)

#54
  1. For that reason Blocks can contain much more transactions.
  2. Although Account Model is more Fungible, it can be traced and without the possibility of send money to yourself it reduces the privacy in comparison with UTXOS.
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#55
  1. Transactions are smaller and more efficient.
  2. Without the maze of multiple inputs and outputs, it’s very transparent as to what was done and what remains.
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#56

  1. Assuming that Ethereum transactions operate on a fee/byte basis, smaller transaction sizes result in a lower transaction cost. Another benefit is that more transaction can fit into one block.

  2. The account model is very simple. Move x coins from A to B. This means a single transaction can’t be split among various recipients, including ones own wallet. The funds always move from one single wallet to another single wallet. It is, however, not possible to track the funds over more than one transaction, whereas bitcoin can theoretically be tracked all the way back to the miner.

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#57

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Transactions take up less space on the network.

  2. How is the account model not as great as the UTXO model for privacy?
    Transactions are very simple. Move 1 Eth from here to there. Very open
    and transparent. UTXO model allows for moving funds to multiple addresses
    in one transaction.

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#58
  1. fungability of coins is more complete without the ability to tract utxos.
  2. wallet addresses are known for each transaction.
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#59

  1. In account model, the more space benefit allows for more efficiency because each transaction needs only to validate that the sending account has sufficient funds to pay for it - unlike the UTXOs method that tracks each and every coin. In ethereum, because of the numerous ERC 20 tokens, space availability is also much needed

  2. The account method is not as great in privacy because the transaction is very obvious between sender and recipient. However in UTXOs, a single transaction can be " obfuscated" into many addresses making it more difficult to identify the true recipients.

P/S I have to skip review on your Facebook because I dont use Facebook anymore. Deleted few years back! Sorry.

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#60

  1. Space saving is always a benefit, since it makes it possible to store more transactions in less space.

  2. Because on an account model, the sender sends the funds directly to the recipient. If a transaction has 3 inputs:

  3. A sending 1 ETH to B

  4. C sending .5 ETH to D

  5. E sending .25 ETH to F

… then, in the case of an account model, it’ll be visible in the transaction exactly that A was sending 1 ETH to B. In the case of an UTXO model, you wouldn’t necessarily be able to see that A was sending 1 ETH to B. It could equally be that A was sending .5 ETH to D and .5 ETH to D, and that C was sending .5 ETH to B etc.

So the account model is basically easier traceable.

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