Homework on UTXO vs Account Model

Ethereum 101
#724

— My answers —

  1. Because it grants better performances, which are crucial if we consider that each node has to run huge numbers of smart contracts, and the more can fit in a single block the better.

  2. The transactions are always one to one, it is not possible to send coins to multiple outputs.

1 Like
#725

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

       More transactions, faster transactions, more space per transaction in each block.

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

      Less privacy. You can see which wallets are involved in a transaction.
1 Like
#726
  1. it is a simple movement between accounts, not need to do the full tracking
  2. you can see who is sending you the money directly (which account) and you don’t have the possibility to send you back some money (where the network cannot recognize it, such as in bitcoin)
1 Like
#727

Because it does not have to store all UTXO, it just updates balance, which leads to more space in blocks and therefore more and faster transactions.
It is harder to track origin of a transaction, because it can have more than one output. Also you can sent funds to yourself within one transaction to someone else so it is hard to say what was really sent to the recipient.

1 Like
#728

  1. The account model doesn’t require much space as the utxo model and allows for a simpler model with faster transactions.

  2. as far as privacy, the account model is not as great as utxo model because a balance is just being updated in the account model. It is easier to see where money goes and your total balance.

In UTXO model, you can simply create a new transaction and pay yourself the “change” in a new address. From the outside, it’s difficult to distinguish address owners. And since there’s no single “balance” in one place in the blockchain (only a bunch of outputs), it is more private.

1 Like
#729
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    more transactions can fit in the block, requires less time, energy and code
  2. How is the account model not as great as the UTXO model for privacy?
    the output is defined and trackable
1 Like
#730

  1. Ethereum’s account model doesn’t consume as much space on the blockchain, so more transactions can be included blocks. When there is high volume on the network, transactions in the mempool can be processed faster.

  2. The account model shows the sender and receiver for each transaction on the blockchain…there is limited privacy because there’s no ambiguity about how much money was transferred to the recipient. By contrast, the UTXO model generates multiple outputs for each transaction and it’s difficult to know with certainty if some of the outputs were returned to addresses owned by the sender.

1 Like
#731
  1. Better scalability
  2. Account model more ‘fungible’ … UTXO model provides more speculative value comparatively as true ‘value’ of each BTC is not readily accessible… eg 1 BTC may not be worth 1 BTC however 1 ETH will always be worth 1 ETH
1 Like
#732

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    There is less data to be processed faster transaction times and less load on the network

  2. How is the account model not as great as the UTXO model for privacy?
    Account model creates a easy to follow direct path from one wallet to another. Utxo has multiple hard but not impossible to follow list of multiple transactions

2 Likes
#733
  1. The account model updates balances and is probably quicker than UTXO.
  2. UTXO uses inputs and outputs and the account model just updates balances. Which does not have the privacy of the UTXO.
1 Like
#734

More transactions per block.

Because of the traceability of transactions.

1 Like
#735

  1. There should be no issue with a block size limit.

  2. Not as great because it cannot split a transaction into different outputs as UTXO model can. Meaning you always know the exact address where all the coins landed. No way to send a part of the transaction to one address and the other part to another.

1 Like
#736
  1. less congested blocks hence more transactions per second on network
  2. because you cant send yourself eth without people easily seeing like with btc
1 Like
#737

  1. better storage efficiency means faster times, lower fees, better accessibility

  2. The Account model is traceable whereas the UTXO model can payout multiple addresses from a single transaction and thus it is possible to conceal ones activities.

1 Like
#738
  1. Taking up less space is a benefit because you have less data in each transaction, thereby allowing more transactions per block.
  2. The account model is less private because you can clearly see the amount of ETH sent and to which address. In the UTXO model, there are multiple inputs and outputs which can be more difficult to trace.
1 Like
#739
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

You could fit more transactions in a block

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

The method inputs, outputs and receiving of “change” is more ambiguous

1 Like
#740

  1. it is benefit in terms of scalability - the size of blockchain and the time required to process it does not increase so fast that means there are not so huge requirements for hardware components of miners / full nodes as in bitcoin.

  2. In account model it is visible to everyone exactly what is my balance, when and how much have I sent to certain exact address and from whom have I how much received. In UTXO model I can hide the amounts in the transaction outputs where I can send some amount (or all) back to myself and noone can see which output serves what purpose.

2 Likes
#741

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    You can fit a lot more transactions in a block because the transaction is very simple

  • How is the account model not as great as the UTXO model for privacy?
    You can easily view all of the transactions and parties that are tied together with these combined transactions.

1 Like
#742

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Less space means transactions will be faster and cheaper.

2. How is the account model not as great as the UTXO model for privacy?
UTXOs enable you to send transactions to yourself, creating uncertainty about how much you are sending to whom. However, in an account model, its possible to see how much you sent to whom and what the balance is as all the coins are the same

1 Like
#743
  1. Helps to increase blockchain scalability.
  2. All of the transactions and their addresses are visible and can be tracked and traced.
1 Like