Homework on UTXO vs Account Model

[wafflemakr]

@Crypto_Mark_007

It is a benefit because it takes up less space

What benefits do we get when each transaction requires less space?

[wafflemakr]

@AJade

tx is easier to complete

What do you mean by easier?

[wafflemakr]

@lucas

Because everyone can see how much you transfer and to who

Hi there! Maybe its better to say that its not clear where funds go in UTXO model. At the end, the information is public, so you can also check where funds went and to which addresses.

[pbrandstater]

1. smaller the better, makes faster and more efficient.
2. easier to trace… 1 eth is equal to 1 eth

[tcoltman]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   One block can store more transactions, increase storage efficiency.
2. How is the account model not as great as the UTXO model for privacy?
   Each transaction can be seen from the outside, how much was sent and to whom

[Amjak]

1. less space means more can fit into each block; smaller fees, and smaller transaction size means nodes will need less storage space.

2. because it gives a single output and so unlike utxo’s you can’t send back to yourself, thus it is clear where (to which address) the transaction went to and the balance of the account.

[JustG]

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

Ethereum’s account model doesn’t require as much space as the UTXO model because there is no need to track and store all transaction outputs and inputs as is done in Bitcoin. This allows for greater efficiency and also makes each Ethereum coin more fungible, since the traceability of ETH coins is not recorded on the blockchain.

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

The account model does not have the same level of privacy as the UTXO model because there is no way to send a transasction output (or multiple outputs) back to yourself as is possible in the UTXO model.

[AJade]

“Easier” meaning that it’s simpler to calculate moving money from account A to account B - there are no UTXOs involved.

[wafflemakr]

@pbrandstater

easier to trace… 1 eth is equal to 1 eth

And how does it work with BTC?

[wafflemakr]

@tcoltman

Each transaction can be seen from the outside, how much was sent and to whom

Both models allow for this, but the account model make this clearer.

[cryptopowers]

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

    Faster transactions and less network costs. Ethereum transaction speed about 12 seconds vs Bitcoin average speed set to 10 minutes.
    
How is the account model not as great as the UTXO model for privacy?

    
    In the UTXO model you can send money back to yourself. Users of the UTXO model can use new addresses for every transaction, this improves privacy.

    In the Ethereum account model a global state stores a list of accounts with balances.

[claudiorox]

1 : blocks can contain more transactions because more data can fit into blocks. Transactions are sent out faster and fees are lower.

2: Transactions show in which account the money went and it’s easyer to track who owns an account as you can easily see if you sent money to yourself while with Bitcoin you never knows who sent the money and who received them.

[stevecav]

1. Less space is required to define a transaction, broadcast it and record it
2. There is a clear direction and value of transfer in any transaction.

[strenev]

1. This is because the account model is just updating of balance and the space a transaction uses is much less than in Bitcoin where you store all of the information about the input and output UTXOs.
2. Because, once an ether enters your account balance, there is no way to distinguish it in future, because all coins are the same. In the case of the UTXO model, 1 BTC consists of many UTXOs which is far more difficult to track

[MarcusG]

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

Since the account model does not require much space as the UTXO model, there is greater efficiency.

The account model only needs to validate that there is sufficient balance in the spending account for the transaction whereas the UTXO model has to retrieve the multiple fractions of the unspent transactions in order to fulfill a spending request.

Hence, in the account model, processing time and required space are reduced, thereby increasing the transaction speed.

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

The account model is not as great as the UTXO model for privacy because it is easier to trace the transaction records.

The account model allows for a single recipient while the UTXO model allows for multiple recipients in a transaction. With multiple recipients, the level of privacy increases due to transactional complexity.

[Samore]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   More Transactions per Block. Faster and easier for Nodes execute commands.
2. How is the account model not as great as the UTXO model for privacy?
   Because the Account Model is more defined as to where the transaction originated and the
   destination it arrived at.

[wafflemakr]

@claudiorox

while with Bitcoin you never knows who sent the money and who received them.

You can actually track who sent the money and received it in both models, its just clearer in the Account Model.

[wafflemakr]

@Samore

Because the Account Model is more defined as to where the transaction originated and the
destination it arrived at.

And how does it work with the UTXO model?

[claudiorox]

gotcha thanks

[Samore]

This lecture was a little more confusing…but my understanding is, the Account Model debits one ledger and credits others. It can credit multiple ledgers in one transaction, but the debited account is clearly defined. Unlike the UTXOs that are gathered from many undefined sources and transmitted to one or many semi-anonymous destinations.
I’m going to watch it again…