Homework on UTXO vs Account Model

[CryptoTradingTrucker]

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

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

1. In addition to simplicity, the Account/Balance Model is more efficient, as each transaction only needs to validate that the sending account has enough balance to pay for the transaction.

2)Because you cant send ethereum back to yourself, unless you have another wallet address.

[FilipGuldhill]

1. More space equal more required processing power. The benefit is therefor related to better transaction speeds.
2. It is easier to view balances on an account model as with a normal bank account, also note that this is on a public blockchain! You can however not earmark (potentially blacklist) specific tokens and trace them as you can on the UTXO system which Bitcoin uses. This is because the UTXO system only keeps track of outbound transactions (any excess amount is returned to the sender) while the Account model just adds and moves tokens between accounts.

[Leanne]

1. Ethereum only updates account balances so it uses less space and can process more and faster transactions.
2. With Ethereum you can see exactly what amount was sent and to what address from A to B and with UTXO you can have multiple outputs making it hard to track transactions.

[Enoch]

1. faster processing time and less fees
2. because you cant send money to yourself in the same transaction with account model

[Rzinho]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   It allows for more space in the block for transactions.

2.How is the account model not as great as the UTXO model for privacy?
UTXO users can use different addresses for each transaction making it more difficult to link accounts together. The account model’s account code is public.

[moza8]

1. More transactions can be included in a block which is good for scaling.
2. Because it is clear how much did you send to someone else.

[Cy13erBob]

The account model doesn’t require much space as the UTXO model, why is that a benefit?
It is a benefit because it takes up less space and has a greater storage capacity with will increase scalability of the network.

How is the account model not as great as the UTXO model for privacy?
With the account model, you can see and follow every transaction. Each transaction can be seen from the outside, how much was sent and to who it was sent to.

[ambous]

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

• fewer data therefore less fees and quicker transaction processing.

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

• because you can clearly see what has been sent from wallet A to B, as this is the way the Ethereum blockchain records the transaction.
• On the other hand, with UTXO you can send from A to B, C, D… and back to A again. Therefore, this complexity gives more privacy.

[Elizabeth]

1. because it allows for greater efficiency of transactions.
2. because with UTXOs it is difficult to know the recipients, while with the account model, the acounts transactions can be traced as the account is simply updated for each transaction

[docbdublin]

1. There are benefits to having smaller space requirements in a blockchain. 1-you can fit more Tx on each block and 2-less data means faster propagation which means a faster network (greater scalability).
2. The cost of decreased space requirements is that the account balance model keeps track of the balance of each account as a global state. The balance of an account is checked to make sure it is larger than or equal to the spending transaction amount.
   This model shows which addresses paid money into the account and which addresses were paid by the individual’s account. You are not keeping track of each coin separately (which is anonymous), you are tracking an individual’s account as a whole.

[travis_bazile]

1. The space saving is beneficial. as the network nodes wont be clutter with information faster transactions and less fee’s.

2. It’s not as great as UTXO for the fact that every BTC transactions can be traced in the blockchain from anywhere it has ever been and gone. ETH network just updates your wallet and doesnt give you the detail information. on where the ETH came from and its history.

[zzzsoren]

@filip

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
2. How is the account model not as great as the UTXO model for privacy?

Answer 1:
Blocks can include more transactions.

Answer 2:
There is one input and one output so you know the exact address of who sent the transaction.

[arno_nabuurs]

1. It will allow for a smaller and thus faster blockchain

2. In UTXO model you can send transactions to multiple addresses including your own making it difficult to verify where it came from. With the account model it simply transfer 1 unit from wallet A to B and it is for everyone visible.

[Arthimis_Vergult]

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

• The benefit of the account model is that transactions take up less space (bytes) in a block. Thus slowing down the growth of the blockchain data stored on nodes.

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

• The account model is a basic “person A sends to person B” model where the balances off both people update. The UTXO makes it in a way easier to track where BTC transactions are coming from by following the UTXO trail on the network. But this actually helps for privacy since transactions have often more than one UTXO so it is impossible to know who is who, and which addresses you control, if any at all.

[dpopp1]

Benefit is that its smaller data so it can be faster.
UTXO models is harder to track due to the fact u can send out multiple transactions & one can be to yourself.

[Dano]

1. Smaller block size.

2. Because anyone can see which address the transaction came from, the exact amount, and the address it went into. You cannot do a multiple transaction and send crypto back to yourself anonymously.

[LXSO]

1. There is more space for more transactions.

2. Because we dont use UTXOs that have a multiple inputs and outputs, on ETH we have accounts with balances that just updates numbers in our wallet.

[turner36t]

1- less space taken up on the block means more transactions per block meaning more transaction throughput
2- with bitcoin, it’s difficult from the outside to distinguish between ownership of addresses meaning it will be harder to trace a transaction. Ethereums tx model is as simple as a transaction between one address to another

[MindFrac]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
If Transactions are smaller more transactions can fit per block. You get more block-size efficiency.

2. How is the account model not as great as the UTXO model for privacy?
In BTC when I send an amount to another party there are multiple outputs. Some of the UTXO goes to other parties and some comes back to me in the form of “change.” And it’s impossible to see how much went to each, only the total amount is readable. In Eth, anyone looking at the blockchain can see exactly how much Eth was sent from one address to another.

[Nityam_Jigyasu]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   It can include more transactions.
2. How is the account model not as great as the UTXO model for privacy?
   1ETH = 1ETH(transfer value is not compromised) but in case of BTC, 1BTC != 1BTC(In BTC transactions, it might have been a fraud money which can be tracked, verified and discarded) in public ledger Blockchain. So, in UTXO model transactions you do is difficult to verify where it came from(multiple inputs on (source) has multiple output(destination) and leftover funds can be send back to your wallet as well). With the account model you simply transfer 1 unit from point A to point B and its visible to everyone.