Homework on UTXO vs Account Model

[Gemstar]

1 The account model not requiring much space as the UTXO model is beneficial since less space per TX can decrease block(chain) size, allow more TXs per second per block, faster processing time & cheaper TX fees, higher throughput, improved scalability, while requiring less storage saves block space for other things, increase storage efficiency, and finally consume less computing power & hardware resources on nodes in blockchain network.

2 The account model is not as great as UTXO model for privacy since anonymity is not possible. You can follow every TX and note a mere balance change, allowing instant traceability as you can only send to one address at a time. Thus, you can see the exact amount transferred and destination address. In fact, you can easily track all TX history. Unlike the UTXO model where you can do multiple TXs to multiple addresses (including yourself) at the same time without showing how much funds were allocated to each address, making the process of tracing all the various outputs a lot more complex.

[Lisalazuli]

@filip

• The account model doesn’t require much space as the UTXO model, why is that a benefit?
• How is the account model not as great as the UTXO model for privacy?

1. Because additional information takes up space in the blockchain and means less transactions can be fitted in and thus fees increase and confirmation slows down.
2. In the account model you can see a tx which clearly goes from A to B; with the UTXO model there are several inputs and several potential outputs, some or all of which can be sent back to the account holder which would be impossible to tell looking at the tx from outside. So you can pay others and direct money to yourself at the same time creating some confusion for an onlooker and thus some privacy,

[vezuchiy]

1. The account model doesn’t require much space as the UTXO model.That is a benefit , it takes up less space and has a greater storage capacity.
2. The account model is much simplier, it goes from A to B. UTXO can be spent multiple accounts making it harder to track and know which address is the same as the senders.

[Keith]

1. The smaller the transaction data the more transactions can be put into each block. This will also reduce the fees for the transactions and reduce the overall size the whole chain.

2. The draw back in privacy is the direct record of which address sent the exact amount of Eth to which recipient. Although the history of the origin of an amount of Eth is a lot less certain than the trail of UTXO’s on Bitcoins blockchain.

[BearsToBulls]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   A: There is more available space in a block to store additional data such as code/smart contracts
2. How is the account model not as great as the UTXO model for privacy?
   A: Because with the account model transaction is easier to follow.

[bigez]

1. Less clogged networks, blocks can have more transactions because each of these take less space thus easier to exchange info and better scalability than UTXO model

2. Account model updates balances, you cannot send someone ether and receive ether in the same transaction (receive change). UTXO model provides more privacy because you can be sending coins to yourself and it can go into different wallets you own or you may very well be paying someone in BTC and getting change back to yourself or different wallets you own due to the ability of having multiple outputs.

[STrismosin]

1. Smaller transaction size allows for smaller blocks which propagate more easily.

2. In the UTXO model you can divide a transaction into multiple outputs, including ones directed to addresses controlled by the sender so a transaction can be obfuscated.

[ankit_7]

1. It makes Tx size smaller meaning more space for Txs and lower transaction fees. Also, processing of transaction becomes fast and wait times gets reduced.

2. It marks that money can be sent from one account to other account. whereas in UTXO multiple Tx can be send making it hard to know which Tx is send where.

[Restford]

1. One block can store more transactions which increases storage efficiency and with that comes several more benefits (such as reduced fees).

2. It is easy to track where the money came from and who is sending it. The UTXO model is harder to see this due to a transaction having multiple inputs and outputs.

[Malik]

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

A. The outputs and inputs of every transaction need not be kept in store as is done for bitcoin. Such a account model requires less space as data is less and also is quicker.

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

A. 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.

[Steffen]

easier to express (because sending always exact amounts):
an account model tx: a ETH balance A:x-1 --> recipient Balance B: y+1 in code,
compared to a list of Inputs and Outputs (UTXO-model-tx, (like banknotes))

By using the UTXO model it is possible to combine multiple UTXOs in one transaction,
but they will transmitted to different recipients.
“if a user generates a new address for each transaction, it becomes more difficult to link accounts despite the transparency of the blockchain.
This is the pseudo anonymous property of Bitcoin, however, increasingly
prevalent techniques for tracing transactions and linking accounts has led to Bitcoin not being as fungible as initially perceived.”
The account model checks just for enough balance and sends the exact amount of eth,
no matter in which fragments (possible UTXOs) they came into the senders wallet.

But otherwise for the account model you can’t distinguish a coin’s origin.

[nick_bell2017]

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

• It is easier to express in code and it allows for more transactions to be stored in each block

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

• The account model does not have a concept of change. You send exact sums + fees. A UTXO model will generate a ‘change’ address for any unspent UTXO’s of the sender. This change address creation gives a level of security as from the outsider viewing in, it is hard to see who’s address belong to who. There are multiple addresses in a UTXO tx. Account model there only the addresses of sender and receiver, mostly.

[CryptoSho]

1. With the accounts model all wallet input transactions get added to the balance so you can send exact funds amounts without using up a bunch of data. With the UTXO model you have to add numerous utxo until you get the funds amount needed which thereby uses more data and makes it more expensive to send.

2. UTXO can send unspent amounts back to your own wallet which the account model can’t do. This makes it harder to trace which addresses are receiving fund and which funds are going back to your own wallet. Therefore the UTXO model is more secure.

[Gss147]

@filip

• The account model doesn’t require much space as the UTXO model, why is that a benefit?
• How is the account model not as great as the UTXO model for privacy?

In ETH your account is updated when a transaction takes place, rather than storing each UTXO and allowing for faster processing. By updating account balances instead of tracking the UTXO there is less privacy because there are no change wallets, so the addresses can be more easily tracked.

[cryptomarls]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
2. How is the account model not as great as the UTXO model for privacy?

A1. It’s a benefit as it is easier to express in code. The account model just updates balances in the transaction as opposed to tracking outputs as the UTXO model does. Ethereum transactions don’t have input/outputs it simply updates the database. this makes faster transacting possible.

A2. Where privacy is concerned the account model is not as great as there is no ability to distinguish between individual coins back to source. The transaction as a whole can be traced back but not each coin. This is because UTXOs do not exist in Ethereum, they don’t have outputs, just balance updates on the entire transaction. On Bitcoin it is potentially possible to follow UTXOs backwards on an individual coin basis even back to the miner, therefore this gives the UTXO model an advantage over account model in terms of privacy.

[Boba-Kush]

@filip

• The account model doesn’t require much space as the UTXO model, why is that a benefit?
• How is the account model not as great as the UTXO model for privacy?

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   A. Taking up less space make it easier to process.

2. How is the account model not as great as the UTXO model for privacy?
   A. You can see exactly who is sending how much and to who.

[Knut1]

1. Because it means transactions will take up less block space, which help with the scalability issue.

2. With the account model you can see exactly how much you are sending to what account. With the UTXO model it is impossible to see who is receiving what portion of the transaction.

[Eric_Toronto]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   The account model needs not store all previous transactiosn for calculating the amount of funds available as the UTXO model does, so faster network processing time is possible. The situation of a full block, which in turn leads to mempool bottlenecks and rising transaction fees, is also less likely to happen. As all units of currencies in an account is not linked to a unique path of movement, each unit under the account model is more fungible than a unit of currency under the UTXO model because some units of the latter may value differently, likely less valuable, due to some kind of shady history.

2. How is the account model not as great as the UTXO model for privacy?
   Under the account model, a transaction is a simple movement of an amount from one account to another account whereas in the UTXO model, a transaction may consist of a number of inputs and a number of outputs. In the UTXO model, a sender can make it more difficult for observers to trace exactly how much has been sent to individual receivers by including other addresses owned by the sender in the outputs. In this way, there is more privacy in the UTXO model than in the account model.

[Sergei]

@filip

• The account model doesn’t require much space as the UTXO model, why is that a benefit?
• How is the account model not as great as the UTXO model for privacy?

Saving space is always a benefit because it allows faster and cheaper transactions. However account model is more traceable and therefore less private. With each transaction account model just updates your balance instead of summing up all inputs and outputs as it is done in UTXO.

[mikekai]

1. Using accounts means there are no inputs or outputs which means transactions are smaller and fees are less.
2. Since account balances are updated it shows a direct link of where the money goes. However with BTC since you can send money back to yourself it’s harder to follow where the outputs go or who owns the addresses.