Homework on UTXO vs Account Model

Ethereum 101
#704
  1. Efficiency in processing and storage.
  2. Account model doesn’t have the feature of having outputs, but instead is just a simple record of the amount of funds going from one address to another address.
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#705
  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 and transactions are faster
  2. How is the account model not as great as the UTXO model for privacy?
    it’s not as anonymous as bitcoin. in ethereum you see someones balance where in bitcoin its hard to trace who owns what utxos
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#706
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?

Reduced transaction data means smaller more efficient blocks or more transactions per block. This can allow faster transaction rate and improve scalability on the Ethereum blockchain.

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

The total amount of Eth can be viewed in each wallet and who sent money to who.

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#707
  1. it’s a benefit because if it takes less space, nodes still get more storage for future transactions.
  2. account model has less privacy then UTXO model, because everyone can verify from which adress to a another adress you send money. with Bitcoin for example people can send multiple transactions in one single transaction, it makes privacy increase.
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#708

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

  • smaller, easier transferable blocks; providing faster processing

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

  • account model: track the address of who has been paid
  • UTXO model: can pay out multiple accounts; one of which can be your own
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#709

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefit because you can fit more transactions in a block. It benefits scalability.

  2. How is the account model not as great as the UTXO model for privacy?
    The UTXO model provides for multiple outputs. When looking at a transaction it is unclear what funds went to where. The UTXO model is however less fungible because the history of the UTXO’s can be traced back to the begining where as the accounting model a value is a value is a value.

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#710

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

Less space is used by each TX in a block, therefore, more TXs can be placed in each block so won’t have the full block problem as early as Bitcoin.

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

In the UTXO model, all of the inputs go to outputs and it is difficult to tell which output is the transaction and which is the “change” for the TX. In the account model, it is the transfer between account which is tracked and everyone can see how much is in an account.

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#711

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

Yes sir, by requiring less space for transactions on every block, it open the advantage to include the instructions or transactions from the smart contracts into the same block.

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

Carlos Z.

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#712

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Smaller transactions means more transactions can be added to a block that has been mined, increasing speed and reducing fees on the network.

  2. How is the account model not as great as the UTXO model for privacy?
    As the account model updates balances, it is not possible to disguise your transactions like in a UTXO by sending change to yourself. It will be clear to see where the Eth came from, where it was send and how much there was.

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#713

Excellent answer sir! really well documented! keep it like that please! :muscle:

Carlos Z.

#714

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    a) It means more transactions can fit within a block creating faster transactions

  2. How is the account model not as great as the UTXO model for privacy?
    a) You can see where the money came from and who sent it. The UTXO model can have multiple inputs and outputs making it hard to know who’s transaction is who, although, you can trace UTXO to its original source.

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#715
  1. The transactions are smaller and therefore also cheaper.
  2. With the UTXO model you can send part of the money back to your wallet in one transaction, the account model doesn’t allow this.
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#716

  1. Benefits:
    Speed
    Storage capacity
    It makes it more efficient.

  2. Being a simpler model it is easier to follow. We can see exactly how much ETH is sent and to which address.

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#717

Becuse there is only one tx (change of balance) where BTC have two so it is much faster.

Because there is only one input and one output in every transaction.

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#718

  1. Any reduction in the amount of unnecessary data in a block frees up space for more transactions. This means the efficiency of the blockchain is increased.

  2. With the account model the destination of funds is clear - funds go from one account to another. This is different to the UTXO model where some funds may be sent back to the original address.

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#719
  1. This is a benefit when it makes ETH a bit more fungible than Bitcoin. Each transaction requires some space in a block that is correlated to the complexity of the transaction, not the quantity of UTXOs that it contains. This results also in a much scalable fee implementation.
  2. The simplicity of the system is triggering a more deterministic way to manage an input on the blockchain, which can’t confuse the public about what is really happening as a matter of fact. There are changing bits but effectively no output in that system. The overall value is traceable from account to account (+fees). In Bitcoin, block analysis will lead to facts and hypothesis.
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#720

  1. Being able to save space is helpful for being able to get more tx into one block .

  2. The account model is much simpler, it goes from a to b. UTXO can be spent to multiple accounts making it harder to track and know which address is the same as the senders.

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#721

the account model consumes far less block real estate

the UTXO model design handles transactions by spending all of the money into the recipients address and the change being spend to the sender’s address. It is improbably to trace the history in this fashion, On the other hand, with the account model there is one sole recipient address.

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#722
  1. More transactions can be executed faster
  2. Because it is traceable which account sent which amount of ether to which account
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#723
  1. The Ethereum account model does not require as much space because it does not contain and trace the entire history of transactions. In the bitcoin network UTXO’s can be traced all the way back to their various mining origins, but such a tracing-back of records is entirely impossible on the Ethereum blockchain. Hence there is less transaction information stored on the Ethereum blockchain, and hence there is less space needed for storing that information.
  2. On the Bitcoin blockchain it is possible for a sender to send funds back to him- or herself while potentially giving the appearance of sending these funds to another receiver. Consequently, it is impossible to tell, on the Bitcoin blockchain, to whom a given UTXO belongs. But on the Ethereum blockchain, by contrast, there are only simple transactions between accounts, and the recipient account can always be clearly identified.
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