Homework on UTXO vs Account Model

Ethereum 101
#602

  1. The account model is a lot simpler to code than the UTXO model where during a transaction an account is updated with the correct balance based on that specific transaction with an exact amount, versus the UTXO model where a wallet will add together individual unspent transaction outputs that must equal or exceed the amount needed to cover what was agreed upon by both parties. Also, to get the updated balance using the UTXO model all of the unspent transactions must be added up which takes a lot more space than the account model.

  2. The account model shows only either person A or person B’s address, which is not as great for privacy as the UTXO model. The UTXO model allows for more anonymity because person A could potentially send to person B and person C when person C is also person A. Externally it is extremely difficult to determine who is receiving a transaction from person A using the UTXO model. With the account model person A is obviously only sending to person B.

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#603

  1. Since blocks in a blockchain has limited size, the smaller the transaction record the more transactions that can be accommodated in a block.

  2. In the UTXO model, transactions have multiple input and output so it is difficult to distinguish who got what but in the account model transactions from sender to recipient is clearly shown.

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#604

1:
It is easier to handle the database and gives possibility to more private persons to have a full copy of the Ethereum blockchain.
Possible faster handling times of SC in the blockchain

2:
Account model is just switcing numbers anbd updates the account balance. Easier to see where money goes to and from who.
You cannot distinguish between each coin.
No tracking of balance – just an update of accounts.

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#605
  • The account model doesn’t require much space as the UTXO model, why is that a benefit? >> transactions are updating the balance of an address directly, there is no need to sum up the UTXOs as it works in BTC
  • How is the account model not as great as the UTXO model for privacy? because in BTC you are able to send back BTC to your own address by sending another BTC to a new address. From the outside it is not possible to figure the way of the transactions
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#606
  1. the transaction is easier to express and faster .
  2. in privacy the benefit of the UTXO model is bigger because you cannot have more outputs and you cannot see which output goes to the receiver. in the account model you can see from outsider from were which amount goes to whom.
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#607

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Speed, because one block can store more transactions

2. How is the account model not as great as the UTXO model for privacy?
On the Ethereum blockchain you have a balance. There are no inputs and outputs that can ‘mask’ your transactions.

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#608

  1. Theres more space for more transactions.

  2. It’s more fungible - can see the account of who sends and receives transactions. Easy to see what goes out and in of different accounts.

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#609

  1. It is a benefit because with smaller transactions, more of them can be fit into each block.

  2. In the UTXO model, certain outputs can be sent back to yourself which increases the level of privacy. In Ethereum, the balance is just updated which reduces the privacy.

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#610

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    This means that ETH trasfer transactions take less space, so each block can take more transactions compared to UTXO.

  2. How is the account model not as great as the UTXO model for privacy?
    In the account model all transfers are easily visible on the network. In the UTXO model there can be some outputs that go back to the same owner, and it’s really hard to distinguish outgoing outputs.

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#611
  1. Every TX is smaller, thus a block grows with more of them and less fees needed.
  2. In Bitcoin you could send to two people (somebody and yourself) and there’s no way to know which is whom’s address. In Ethereum the input’s address and the output’s address are clear. You know who sends to whom.
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#612
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The transactions will be faster and take up less space.
  2. How is the account model not as great as the UTXO model for privacy?
    The account model just changes account balances whereas UTXO all coins are sent at the same time and one party will receive what is sent and the other receives what is left over.
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#613

  1. Transactions doesn’t have inputs and outputs = less space for each transaction, we can store more tx’s in a block, tx’s are faster, coins are more fungible (there is no traceability).

  2. Not possible to send tx to several different recipient in the same time. We can just move funds from account A to B (update numbers in blockchain).

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#614
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • This means that the block sizes won’t have to be increased. In other words, transaction time and cost won’t be effected when there are many eth users. This makes eth more scalable than btc.
  1. How is the account model not as great as the UTXO model for privacy?
  • With UTXO’s an outsider will not know who is the receiver of btc and who is the sender, but in the acc model an outsider will know exactly how much eth was spent and to what address it was sent.
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#615

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

At least two benefits: 1) More fungibility: previous history of single units are not trackable. 2) Less space occupied by the single transaction

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

Because it is easier to link an address to its actual proprietor

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#616

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

The reduction in space allows for more transactions to happen quicker. Not as effected by block size limitations. The account model creates fungible assets since there is no distinction between one coin and another of the same type on a network. .

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

The UTXO model encrypts who the receiver of each transaction is. You can send to your self. You wallet balance is the sum of the UTXOs.
Whereas the account model reveals the account balance and who is receiving your transfers. On the flipside, exchanges are not able to blacklist certain codes.

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#617
  1. The account model dosen´t require much space in the block. Therefor it saves space and goes faster from A to B. The transactions is therefor more efficient transactions.
  2. Because its easier to track one transaction from another. When you send a UTXO it can have multiple outputs and its hard to sau where the money goes from to where.
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#618
  1. More transactions can be processed using less space in a block.
  2. Its easier to follow transaction history.
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#619
  1. Smaller storage space, more transactions, faster propagation speeds per block.
  2. No obfuscation by sending multiple outputs to different addresses.
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#620

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? A block is able to store more transactions, because less space is occupied. The transactions will also be faster. This also makes more fungible, but less private.

  2. How is the account model not as great as the UTXO model for privacy? You can’t send back to yourself. In an account model you can see the sender, the recipient, and the amount of Ether sent in the transaction.

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#621

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

Yes sir(s), but could you please describe your answer a little bit more?

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

Carlos Z.