Homework on UTXO vs Account Model

Ethereum 101
#582
  1. It means that more transactions can fit into the block which means increased throughput.
  2. Because you cannot send money to yourself and it’s easier to define source and target of each transaction.
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#583

1 btc may not always be worth 1 btc depending on whether or not exchanges choose to blacklist a particular one because what it may have been used for.

#584

  1. Because it will be easier to run a node, as you can run it on cheaper hardware

  2. Because in the account model you always have a sender and a receiver, where as in the utxo model each transaction kan have many inputs and outputs (utxos), and it is not possible to determine which utxos are for someone else, and which goes back to yourself

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#585
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? Transactions are more efficient and more can be included in a block due to the smaller byte size
  2. How is the account model not as great as the UTXO model for privacy? You see where the funds came from last and where they are going. The origination or the individual path is not traceable. The ETH is generic funds and not individual and distinct like BTC
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#586

The account model provides smaller, faster and cheaper transactions
The account model is more transparent

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#587

  1. A benefit of the account model of ETH not needing as much space as the UTXO in BTC is that there is more space for more transactions per block.

  2. The account model is not as great as the UTXO model in terms of privacy because In the UTXO you can send money to someone and send money back to yourself, all in one transaction and if your looking at the blockchain it is difficult to know which one is which. Perhaps both transactions went back to you or both to someone else. The UTXO has numerous outputs of data including change wallets that would make tracking more complex therefore protecting privacy. There is no notion of an output in ETH.

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#588

  1. The less space allows for a faster transaction speed and more space to hold transactions within a block.

  2. An account model like Etheruem simply sends transactions from A to B that is seen as numbers and can be seen and read by anyone, while a UTXO does not show numbers, just unspent transactions that can only be read by a wallet which is private.

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#589
  1. It is a benefit as it means that there is more space for transactions on each node. Also as each node is generally users computer and not a major central server it makes it easier to keep the node operational.
  2. In Ethereum transactions are made to and from an address which is originally assigned to the wallet used and therefore they are more easily traceable even if one attempted to send money back to oneself. In Bitcoin the network send money to addresses which it generates for each transaction. Ownership on the network is determined by which UTXOs can be opened by specific private keys. As a result privacy is greater e.g. even if one sent Bitcoin to oneself the network would generate an address different from the originating address.
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#590

1- 1 ETH will always be 1 ETH and there is no UTXO
2- Sending ETH to yourself is not applicable but with BTC it is possible.

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#591

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It’s a benefit because it reduces block size and makes transactions faster and efficient.

  2. How is the account model not as great as the UTXO model for privacy?
    In the account model, there is no anonymity because you can easily detect the exact amount sent to the main recipient, but due to multiple output addresses used in the UTXO model, it is not possible for an outsider to detect which address is the main recipient.

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#592

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefit because it takes less space, there is more storage capacity and it is faster and efficient for the transactions.

  • How is the account model not as great as the UTXO model for privacy?
    In the UTXO model, it is possible to have a transaction with multiple outputs so it is harder to track down the main receiving address.
    Instead, in the account model, the transactions are easily tracked- you can see the amount and the main address to which the money were sent.

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#593
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? It’s easier to code and it’s a space savings so more transactions can be included in a block. It also has more fungibility - ETH does not track the coins back to inception so each 1 ETH = 1 ETH
  2. How is the account model not as great as the UTXO model for privacy? The UTXO model can pay out multiple accounts in one transaction which one of those could be your own account. The account model is much easier to understand transactions because it goes from one account to another. One simple transaction.
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#594

Q1; It allows for more TXs and also speeds up the TX process.

Q2: With the account model someone can see exactly how much ETH you have spent and earned whereas in BTC it was much harder to trace TXs

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#595

Cause more transactions can be stored in each block of the blockchain.

In Account Model each transaction only needs to validate that the sending account has enough balance to pay for the transaction, for this reason it is more easy to track transaction than for example in bitcoin.

In bitcoin if you don’t send the exactly amount of the received UTXO a part will be back to you as a “change” , this creates some kind of privacy in the blockchain cause a person from outside cannot deduct which one of the output is your address or not.

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#596

  1. That is a benefit because it takes up less space and has a greater storage capacity.

  2. The account model is not as great as the UTXO model for privacy because there are no outputs. Each transaction can be seen from the outside, how much was sent and to whom.

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#597

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

Yes sir, you are right on that, but that does not the correct answer for the question, if you please redesign it a little better.

If you have any doubt, please let us know so we can help you! :slight_smile:

Carlos Z.

#598

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

  • That is a benefit because smaller are the transactions, bigger is the number of them that is contained in a single block

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

  • Because you send ETH from an account to another, in this way it’s possible to track who sent and who received, instead with UTXO you send an amount that in part could go back to you, and nobody could know the owner of the address
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#599
  1. Smaller block size faster transactions.
    2.With the account model you can see directly who sent coin to who, vs the utxo’s is harder to trace
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#600
  1. Leaving more space in the account model of ETH benefits the network by leaving much more space for the smart contracts and more transactions. This plays a role in the ERC20 tokens which have many transactions on the network.
  2. The account model is more easily trackable from the outside looking in. This is because on the ETH transactions do not have UTXOs that blend the sender/receivers together in a transaction. The ETH blockchain simply updates the ledgers and shows transaction from A to B
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#601

[quote=“Omar, post:590, topic:8445”]

1- It is a benefit because of the space it takes which is less and it has more storage space.
2- With ETH you can track a transaction. What I remember with UTXO there more parts created and it is impossible to know which is which.

Thank you Carlos!

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