Homework on UTXO vs Account Model

Ethereum 101
#1045

  1. By saving space you can fit more transactions in the block. This means the transactions will be confirmed faster

  2. The UTXO model provides more privacy because you can send Bitcoin back to yourself in the same transaction. Somebody look at the blockchain would not know who owns that address so they would not be able to follow the coins accurately.

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#1046

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Less space means more data per block.

  2. How is the account model not as great as the UTXO model for privacy?
    In the UTXO model your balance can consist of many different addresses that may be hard to trace back to you. In the account model your wallet balance is in one location just like your bank balance.

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#1047

  1. It allows the Account model to have more space for transaction and allows it to be faster as it only stores the balance of all transactions

  2. Account model for Ethereum is not as great as UTXO model for privacy due to you are only able to send Ethereum to one wallet at a time and you can see which wallet this is. UTXO model allows you to send to multiple outputs in one sitting and as you are only able to see the Public address on the explorer, you would not be able to confirm the owners of these wallets

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#1048

  • It reduces the sizes of the blocks and make the transactions faster

  • You can easily si sender and recipient

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#1049

UTXO vs Account Model

  1. The account model dosen’t require much space as the UTXO model, why is that a benefit?
    The UTXO model uses more space than the account model. Adding all the UTXO’s together and determining your balance will take more space up when your wallet compiles a transaction together. The account model updates balances, when funds are sent to another destination. A benefit of the account model, would be, that since there are no inputs or outputs, the storage would be less and nodes do not need, to find unspent transactions, that may be scattered around the blockchain. In turn it will cost less to send a transaction and more transactions can be added to blocks.

  2. How is the account model not as great as the UTXO model for privacy?
    UTXO’s have multiple inputs and outputs, meaning that each transaction can be tracked and one can looks where the UTXO has been. The UTXO’s can be tracked, but it may not be known who has what funds, since multiple outputs can occur. In the UTXO model, many outputs could go to the same person who controls different wallets, or funds can be sent to one address, and the user can send themselves back the balance. In the account model, there are no inputs or outputs, so if funds are sent out, instead of the remaining balance being sent back to the user, the account balance is updated, which can let someone easily follow funds from one account, reducing the privacy.

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#1050

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    it is a benefit becauseit takes up less space and has greater storage capacities.

  2. How is the account model not as great as the UTXO model for privacy?
    because you can not send money to your self. for example if i did a transaction with Ivan on the ethereum network it will show it went from to him. However on the UTXO model i could send money to Ivan and my self and people wouldn’t be able to figure out who was who.

In the account model can be seen: how much was sent and to whom

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#1051

  1. There’s a benefit to the account model in the sense that the smaller amount of space required allows for more transactions to be fit onto a block, which supports the efficiency of the network.

  2. The account model isn’t the same as the UTXO model for privacy because the transactions from one account to another can be viewed directly. There’s not an option for the sender to send some money to themselves, such as in the UTXO model.

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#1052

  1. More space allows for faster, cheaper transactions and more transactions per block. The nodes grow slower, too,

  2. In the UTXO model transaction could have multiple outputs and are thus harder to track, giving you more privacy. The account model allows for easier tracking.

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#1053
  1. The account model is beneficial because without UTXO’s the smaller transactions mean smaller fees faster processing and they take up less space in the block.
  2. The account model sends ETH without UTXO’s so addresses are the original specified and can be tracked. BTC sends UTXO’s so multiple addresses are paid so it is harder to know which address sent the funds.
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#1054

  1. There will be room for more transactions in a block and when the transaction is smaller the fee will be lower.

  2. In the account model it is clear who is the sender and reciever of a transaction. In the utxo model you dont know what is going to a reciever and what is returned to yourself.

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#1055
  1. Because there is no need of the additional data which is space consuming.
  2. In Account Model is less privacy you can see and follow every transactions . In the UTXO Model you can have several outputs at the same time
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#1056

  1. The account model is a benefit because the tx is smaller, so the fee is also cheaper. Another benefit is is makes the coins more fungible.

  2. You cannot send money back to yourself on the same wallet address. You cannot send money to someone and yourself in one tx.

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#1057

  1. More transactions can fit in a block and it would be faster.

  2. Instead of UTXOs the account balance just gets updated in the database.

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#1058

  1. There is less code or bytes being used which means smaller fees.

  2. You get to see account balances and you can general tell who the owner is.

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#1059

1.This helps scalability, more transactions per block in less time and cost.
2. Account model it is very easy to track where the transaction comes from and where it
goes in the UTXO an input can have multiple outputs so it is more difficult to track.

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#1060

Thanks! I appreciate the details.

#1061

  1. Because ethereum wallets hold a balance meaning that they don’t need to hold the entire history of transactions, but only the transfer of ether from one account to another, thus reducing computing power to calculate balances and reducing block size.

  2. Because in ethereum tokens are fungible, ethereum, there is a trace of all transactions that move from and to each account, In contrast with bitcoin that lets UTXO to have several different outputs and have different schemes of ensuring a more private system by having the reminder of UTXO be directed to a new address, owned by the user, this making it harder to audit the ownership of the wallet.

Ether in contrary is a more auditable system in terms of balance transfer from one wallet to another, as an analogy UTXO model is like bills and cash while Account Balance model is like having a debit account.

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#1062

  1. Because it takes less space in the network and that is always a good thing. A block can store more transactions that way.

  2. Because in the UTXO model you can send part of your UTXO’s to someone and part of it to someone else or yourself. Nobody can exactly see which part of the utxo went to who. In the Ethereum protocol you have just 1 output in a transaction. And you can always look back which accounts have been paid. Not different outputs like with the UTXO’s

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#1063

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Faster transactions, there is space for other kind of data.

  2. How is the account model not as great as the UTXO model for privacy?
    In the account model there is a direct evidence which account sent to which. In contrast, in UTXO model you can have multiple outputs where some of them could point to an address hold by the sender which increases the privacy.

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#1064
  1. The lower space requirements of the account model compared to the UTXO model is a benefit because it lowers the data requirements for the network participants, and also it means that each block can include more transactions and smart contract code.
  2. The drawback of the account model is that it lacks privacy because you cannot sent money to several addresses at the same time, as you can with the UTXO model. At the same time, the account model makes the coins more fungible, since you cannot directly trace the coins as you can with the UTXO model.
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