Homework on UTXO vs Account Model

Ethereum 101
#844

1 It allows smallers blocks, and faster confirmations.
2 It can´t obfuscate transactions, neither send coins to multiple address or yourself.

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#845

Blocks on the chain can include more transactions, smart contract code and smart contract state in each block.

Transactions with UTXO model are a little more obscure to track because it’s not clear who the recipient of the transaction always is when reading the blockchain. In Ethereum, with the account model, anyone can see the specific transactions from one account to another.

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#846
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? The block can store more transactions and will also increase speed
  2. How is the account model not as great as the UTXO model for privacy? Each transaction is visible from account A to account B. In Bitcoin there are multiple outputs. The unspent UTXOs are also sent as an output back to yourself which makes it harder to track
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#847
  1. The account model stores a balance or total of the amount available, while the UTXO model has an accumulation of all the UTXO you have access to and then the wallet adds up all the UTXO to find out the total amount of Bitcoin.
  2. Because the account model always has the same account you can figure out the total and how much went in and out. with the UTXO model you dont know which UTXO back to you as change and which went to the recipient, so you cant track a single account and what it owns
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#848
  1. Smaller block sizes mean blocks can include more transactions.
  2. Because we do not have as much security into traceability of all eth tokens.
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#849

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

Yes, but not only faster or processing speed, also transactions are smaller in bytes, meaning less fees and blocks can store other data (smart contracts) to make the network faster/efficient without being too difficult for the miners to produce blocks faster.

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

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

Carlos Z.

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#850

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

Yes sir quite close, but the UTXO model does not “hide” the amounts, it just makes it harder to track, there are still procedures to keep track of the funds provenance of a wallet (since the blockchain is public, there will always be a way to track any wallet funds). The Account Model is quite easy to track the provenance of a wallet/account, since you can track “from, to, quantity, hash, time” on the blockchain in a way more simple than UTXO.

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

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

Carlos Z.

#851

Great. Thanks for the insights!

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#852
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because there is no multiple inputs and outputs (satochies) it is a faster TX’s only updated in the account model +1 -1. It is easier to see where money goes and your total balance.
  2. How is the account model not as great as the UTXO model for privacy?
    Because in the ETH Blockchain there is no tracability of each input and output (no satochies) it is a bit less private. Not fungiable. In Bitcoin u can send multiple inputs and outputs by breaking up 1 bitcoin and send to multiple output address’s but in ETH it is 1 to1 TX’s.
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#853
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

It is a benefit because it saves space comparing to multiple transactions that are going out on BTC. This will allow the ETH to be a base for the bigger, faster, and more efficient TX system. This feature allows to be more fungible and create better SC’s.

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

It’s because UTXO’s has several outputs of the TX’s and nobody know’s (but you) which one of them was a ‘‘change’’ from the TX that will be returned to you or the actual TX to the recipient. Account model has straight forward IN - OUT, where you can clearly see how much and what was the TX to the recipient. No mystery, no assumptions that would hide your TX actions.

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#854
  1. This means more transactions are in the blocks that lead to a faster more efficient blockchain.
  2. The transactions can be are transparent concerning who sent you the coins and were they came from.
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#855

It reduces memory in the blockchain and therefore is faster to create and write blocks. Additionally as they are smaller blocks they will be sent around the network for verification much faster.

This is because there are no outputs from the transactions and each transaction is visible from the outside i.e. how much was sent and to whom it was sent to.

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#856
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

It’s a simpler model that uses up less space in the network, good for speed, lower fees and efficiency.

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

The account model has high transparency seeing exactly where full transactions are going. UTXO transactions can be disguised by sending some or all of it back to recipient

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#857
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

The account model does not need to keep track UTXO origins, leaving space for more transactions in the block. Increasing transaction speed, lower fees and scalability.

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

The UTXO model can create multiple outputs that are completely anonymous, giving it the benefit of privacy. The account model is based on a simple A to B transactional capability. The UTXO model is more censorship resistant.

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#858

[quote=“filip, post:1, topic:8445”]

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because transactions take up less space as the UTXO model, which reduces block size and saves space
  • How is the account model not as great as the UTXO model for privacy?
    [/quote] It is unidirectional money goes somewhre and comes from somewhere in UTXO a transaction can have several outputs
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#859

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
While the UTXO model is more robust the account model allows a faster txs and lower fees.

2. How is the account model not as great as the UTXO model for privacy?
It’s not possible to send multiple outputs in the same txs you just are allow to send 1 tx to 1 receiver and that makes the account model not as great for privacy.

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#860

  1. The transactions get smaller and therefore cheaper. It enables better scaling.

  2. Thus the account model does not use UTXOs, it is not possible to try to gain privacy with using multiple different outputs in a single transaction.

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#861

  1. The account model doesn’t use the same space as the UTXO model. This is a benefit because there will be more space in each block for transactions and also because there is no inputs and outputs, it makes the coins more fungible.

  2. With the UTXO model it is easy to add a layer of anonymity by adding multiple outputs to your transaction. The is not possible with the Account Model. You can only query the accounts ballance with the Account Model.

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#862

Homework on UTXO vs Account Model - Questions

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

  1. With the Ethereum Account model, transactions are record in such away where the network would just adjust the balance on each account. With a Bitcoin Wallet balance on the account are made up from UTXO’s that are gather together and your Bitcoin wallet would show you your balance. The benefits on the Ethereum network is that more transactions can be put into 1 block making leaving more space for the network to grow and have a greater adoption when it comes to Ethereum used as a form of currency.

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

  1. With Bitcoin when your outside looking into the blockchain, the transactions are made up from Inputs and outputs UTXO’s. With bitcoin you can send money to 1 person while at the same time send money to yourself in a single transaction. With the transactions you are unable to tell which address belongs to who. This gives that extra element of privacy which Ethereum does not offer. Ethereum Transaction account model, the transactions coming in and transactions going out would be easy to see on the Ethereum Blockchain. Pretty simple to look see which account balance holds what. Again there is no personal i.d attached to an Ethereum account but it doesn’t offer the same level of privacy like Bitcoin.
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#863
  1. Smaller space taken means more transactions possible since the blockchain is stored across nodes its a benefit if it’s as small as possible.
  2. Since transactions is made from accaount X to accout Z then its possible to see where funds came from and where they go. In UTXO model you cant see in the same way who recieved money.
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