Homework on UTXO vs Account Model

Ethereum 101
#662

1- reducing space (eliminating UTXO) is a scalability benefit. Less space used, leaves more space in the blockchain

2- Use of UTXO saturates the transaction trail with inputs and outputs. Whereas the ETH model is transparently from the outside. Sender and receiver can be seen.

Question: would an HD Wallet increase the privacy of ETH transactions?

1 Like
#663

Q1: It means more transactions can be stored in the blocks making for faster processing and broadcasting of blocks across the network.

Q2: The account model is easy to track who send / received TX’s from whom. With UTXO’s privacy is created because a TX can go to many different addresses. Even though these outputs can be traced back through the blockchains history it cannot be certain which accounts received what. Thereby creating an element of privacy.

#664

The more space you have the more potential you have, so any extra space would be a benefit.

Because UTXOS can have multiple outputs, therefore it would be harder the track each coin.

1 Like
#665

  1. Because it doesn’t take up as much space.

  2. Unlike ETH bitcoin is tracked to its origin.

#666

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

Quite close sir, but that does not explain how the account model is not as great as the UTXO model for privacy, could you please redesign the answer?

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

Carlos Z.

#667

Hello sir, not really, it’s just another way to store your funds with a more secure process, but it will use the same Account Model process when you transfer them.

Hope this gives you a clear view of the subject, keep learning! :slight_smile:

Carlos Z.

1 Like
#668

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

Quite close Miss, but that does not explain how the account model is not as great as the UTXO model for privacy, could you please redesign the answer?

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

Carlos Z.

#669

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

In general, this makes operation simpler and easier.I’m assuming this make’s scalability of transactions less of an issue for Ethereum.

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

It is very clear who is sending and/or receiving ETH in any transaction. Because there is no transfer of UTXOs, you are essentially showing a transfer between users.

1 Like
#672

I have edited my answer and hope it does justice to the question now. Please correct me if I’m wrong.

1 Like
#673

  1. More transactions can fit on a block

  2. The account model is considered less private because the transactions are much simpler and show to the 2 parties involved in the transaction.
    The UTXO model is more complex and is considered more private. With potentially multiple UTXOs as the input of a transaction and multiple addresses as the output, it is not so obvious who received how much. For example, one of more of the output addresses could also be sending the money back to the sender.

1 Like
#674

  1. The account model doesn’t require much space which is beneficial for increase transaction throughput and fungibility. Especially if the network need capacity to function well in order to accommodate activities such as dapps and projects during ico boom and bust.:slight_smile:

  2. Account model definitely not as great as UTXO in terms of privacy which can be traced easily. For instance, if you have 10 ETH and decided to pay someone 1 ETH your total balance left is 9 ETH on chain. Whereas if you use unspent transactions output (bitcoins/UTXOs) there will be bunch of more inputs that are add up and some outputs send to a particular address and another back to you make it very difficult to track the owner.

1 Like
#675
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because ETH doesn’t send UXTO, less space on ETH blockchain means increased TX speed.
  2. How is the account model not as great as the UTXO model for privacy?
    TX’s in account model will show how many tokens were sent from one account to another account. TX’s can’t be mixed as in UXTO model.
1 Like
#676
  1. Since it requires less space, a miner can add more transactions into a block, therefore reducing the cost per transaction.
  2. In the account model, each transaction has only one output making it easy for the public to know who send to who. While with UTXO, a transaction can have multiple outputs, including the address that generate the transaction.
1 Like
#677

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Extra space means more transactions within which makes it more efficient.

  2. How is the account model not as great as the UTXO model for privacy?
    Unable to find out which TX come back for us and what goes to the other.

1 Like
#678

1: It can make faster and cheaper transaction

2: Because of the fact that there is no way to confuse others by having multiple outputs in a transaction like you can in the UTXO model. This makes the account models transactions much easier to track visually.

1 Like
#679
  1. Because of this there will be more space in the blocks for more transactions. this allows the network to be faster in processing transactions
  2. The account balance allows you to track the addresses of each balance making a traceable of where the transactions are coming from.
1 Like
#680
  1. The account model doesn’t require as much space as the UTXO model because it updates the balance of each (wallet?) and so transactions take up less space.
  2. The account model is not as great as the UTXO model because it shows the balance of each to the public.
1 Like
#681

  1. Since the account model requires less space than the UTXO model, this creates the benefit of smaller blocks, or more transactions per block. It leaves room in the blockchain for more activities.

  2. The account model loses the privacy benefits compared to UTXO becaue you cannot return remaining change of runds back to yourself. The transactions are far more transparent on the blockchain.

1 Like
#682
  1. more tx can be put into a block
  2. as only the balance of the account is updated, transactions are more difficult to trace back, because we cannot see the inputs and outputs of transactions like in utxo. On the other hand you loose a bit of privacy compared to btc for the same reason (easy to see, where the money came from)
1 Like
#683

  1. Transactions don’t take as much space in the blockchain.

  2. In bitcoin it’s common, that when an UTXO is sent to the recipient, UTXO is also sent back to the sending wallet, so that it receives the “change” money. It is sent to a different address, which increases privacy. In account model all the transactions between the accounts are clearly seen.

1 Like