Homework on UTXO vs Account Model

Sure, “No obfuscation by sending multiple outputs to different addresses”, meaning UTXO(s) to multiple addresses (whether or not all of the outputs go to me or elsewhere) vs a one to one account transfer (debit from me, credit to you).

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

This is a benefit because the transactions are more simple and clear to understand. I would also assume the block size would be smaller.

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

The account model only allows single transactions with 1 sender and 1 recipient. This does not allow redirection of funds back to the sender or to some other party, meaning the full amount of the transaction always goes to the recipient. This makes it much easier to track where funds are going.

1 Like
  1. It does not requires much space so its makes TXs size smaller.

  2. In the UTXO model you have inputs and outputs in a single transaction, and you can send the outputs, as many as you want, to who you want, including yourself, so that from the outside you can make it difficult for an observer to know where and to whom the outputs are going, therefore increasing privacy.

In the account model however, there is only one output in a single transaction, so it is easy to see from where to where the ETH have gone, hence, making it easy for an outside observer to trace the ETH flows.

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

  2. How is the account model not as great as the UTXO model for privacy?
    Because for etherium it’s easy to follow the transaction between accounts whereas a bitcoin utxo can have multiple outputs.

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

The account model requires less space per transaction allowing more transactions per block. This also means that the blockchain size will be a lower memory size, increasing the amount of people able to host a node, therefore increasing decentralization.

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

The account model does not allow the user to split transactions, only send to another account, which makes it very traceable. UTXO’s may have multiple outputs, thus making them less traceable.

1 Like

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

This is a benefit because it’s a much simpler model, and as a result has lower data requirements for nodes in the network, and each block can store more transactions.

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

The account model is not as good for privacy because every transaction is public and you can’t send money to yourself anonymously by giving yourself “change” like you can with Bitcoin. This means that it’s no secret how much money is being sent to a new recipient vs. back to the sender’s change wallet.

1 Like
  1. We can save transactions in less space.
  2. In the account model is clear to which account the money goes in UTXO the output could go to different addresses and it’s difficult to trace the owner.
  1. More transactions can be in a block .

  2. Transactions are visible.

  1. less information makes the transactions quicker.

2.because with a bitcoin tx it wont tell you all the different place your coin may go, and with eth is so simplified by an exact trans its clearly visible

1 Like

The model doesn’t store UTXOs which in turn saves space and therefore it makes it possible to store more transactions.
2.
With bitcoin, you can trackback the transaction thanks to the UTXOs and multiple transactions can be sent at the same time including to yourself. WIth ETH balance you can only see if your account have increased on decreased.

1 Like
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    faster confirmations, more scalability
  2. How is the account model not as great as the UTXO model for privacy?
    with UTXO transactions vs account with eth the balance is straightforward and known through etherscan with actual balances per account. Whereas UTXO has no account just a numbers of transaction you may or may not have access too.
1 Like

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

Indeed sir, but could you please describe a little bit more why is not as great as the UTXO model for privacy?

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

Carlos Z.

1 Like

1.This is a benefit because if there is more space available the blocks can include more transactions, which can keep the cost of each individual transaction down. Also, the extra space allows the inclusion smart contracts.

2.A way in which the account model is not as good as the UTXO model for privacy is that with the account model, when one transaction is made, all of the transaction funds go to one advertised address. While with the UTXO model, funds can be sent simultaneously to multiple accounts, some of which may, or may not, belong to the sender.

1 Like
  1. With account model split transactions can’t be made but with UTXO model you can have multiple outputs which is more difficult to track.
1 Like

1.The account model doesn’t require much space as the UTXO model, why is that a benefit?
— More txns/block is less expensive for nodes and users.

2.How is the account model not as great as the UTXO model for privacy?
—In account model you can see exactly how txns flow from account to account

1 Like

The account model doesn’t require much space as the UTXO model, why is that a benefit?
The blockchain is more scalable as block could contain more transactions and can be made more efficiently

How is the account model not as great as the UTXO model for privacy?
transactions show distinctly what account it is coming from and what account it is going to whereas in bitcoin transactions are more anonymous as we one cannot tell where the UTXOs are going

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

Blocks can include more transactions, which is crucial for ethereum which has hundreds of ERC20 tokens settling on the ETH blockchain.

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

The transactions in the account model are easily tracked. It’s possible to see exactly how much money was sent and to which account.

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

  2. How is the account model not as great as the UTXO model for privacy?
    It gets diminished because of it’s unequivocal history in that multiple outputs can’t be controlled by oneself.

1 Like
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    You can fit more transactions in a block, so the network is faster.

  2. How is the account model not as great as the UTXO model for privacy?
    You can send a transaction only to one address instead of many. So the whole network knows exactly how much money you sent to the other person. In UTXO model you can send part of a transaction back to yourself without anybody knowing.

1 Like
  1. it holds balance, the transaction becomes faster because it doesn’t hold much data unlike on UTXO, it holds output and input data which make the transaction slower than account model.

  2. on account model you can see the remaining balance every transaction unlike on UTXO, you need to spent all your “coins” every transaction. either spent it to other or to yourself.

1 Like