Homework on UTXO vs Account Model

Ethereum 101
#1145
  1. You only need to specify what amount to send where.
  2. You have one account that you use and don’t have the notion of sending change back to a new address.
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#1146
  1. this is a benefit because the blocks can take up significantly more transactions
  2. you can visually follow the transactions easily in an account model, while in UTXOs you cannot tell what transaction went where
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#1147

The Ethereum blockchain uses an account model that essentially updates the accounts to reflect the transfer of value (i.e., the transaction). There are no inputs or outputs in Ethereum transactions making them smaller. Smaller transactions mean more transactions can fit into a single block making confirmation times shorter.

UTXO transactions on the Bitcoin blockchain are more private. The only information a third-party observer can see is the amount of the input, the amount of the outputs, and the fee. The owner behind the accounts are private. So, I could send money to another wallet I own and third-party observers will not know.

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#1148

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    More data can be stored within each block, so the blockchain becomes more efficient.

  2. How is the account model not as great as the UTXO model for privacy?
    The UTXO model is following the transactions, trying to associate them to a specific address/ account and therefore, can be manipulated (like sending yourself UTXO).
    In the “account model,” the emphasis is on the account balances (which are specific) and not on the transactions. A transaction is a change in a specific account (or accounts) balances.

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#1149
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The account model taking up less space is a benefit because you do not have UTXOs in the transactions which makes the transactions smaller and allows for more transactions per block.
  2. How is the account model not as great as the UTXO model for privacy?
    In the account model everyone knows where the transaction was sent. It just changes the balance. This makes it easier to trace the owner.
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#1150
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

This is a benefit because there’s less information about the transaction that has to be stored. In addition, this creates more room on the Ethereum Blockchain for smart contract code and the state that a contract is in.

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

With the account model you can’t send to multiple addresses (like you could with the UTXO model) which allows you to be more discreet and mask who the funds are going to.

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#1151

  1. More transactions inside each block

  2. You can not send money back to yourself and someone else in the same transaction

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#1152
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Smaller block sizes has many advantages including faster block times, lower latency, more efficient and slim network
  • How is the account model not as great as the UTXO model for privacy?
    The UTXO model makes it harder to know from where the transaction is coming from and where it is going to (can go back to original owner). However the Ethereum transactions are not structured that way so one can track transactions more easily.
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#1153
  1. There is no need to store all UTXO in order the balance be showed by the wallet. Account model a transaction will be just update in my balance and it`s more efficient in term of use of space
  2. Account model has not the possibility that I can send money to different addresses in the same address, including mine, as UTXO model.
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#1154
  1. Lesser space taken by a transaction in the account model is beneficial in that more transactions can fit into one block, making the network more efficient in terms of processing more transactions at the same time
  2. Unlike the UTXO model which enables tracing UTXOs back to the coinbase transaction, the account model simply uses the adding and subtracting of balances, making it impossible to trace individual coins back to their origin and so making them indistinguishable from each other
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#1155
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

REquiring less space means that there is greater storage efficiencies. This leads to more transactions being done at the same time which leads to faster confirmation times. This is good for adoption.

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

In the UTXO model you can have multiple outputs from a TX. This makes it difficult to track which account is receiving which funds. The ethereum account model only tracks the one TX from account A to B making it easier to track to which accounts funds go to - making privacy less secure.

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#1156

QNS 1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
By having lesser space, it will be a benefit as more transactions can take place with the network being more efficient in confirmation at the same time.

QNS 2. How is the account model not as great as the UTXO model for privacy?
In the Bitcoin UTXO, you will not be able to track the output easily due to the multiple output address can be yours at the same time too. However, with the ethereum account model, we can only transfer one account to another. These in turn makes privacy less secure as it will be easier to track.

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#1157

The account model doesn’t require much space as the UTXO model, why is that a benefit?
Faster network propagation of transactions. Smaller storage requirements for full nodes.

How is the account model not as great as the UTXO model for privacy?
In the utxo model you can send outputs to yourself.

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#1158

  1. It is a benefit because space in each block is limited in size, and if it takes less space you can fit more transactions in a single block. and as an added benefit less information in a transaction would make it a quicker transaction.

  2. The ETH account model is not as private as the UTXO model for privacy because you can see the exact amount that was sent and to which address, or who received it. where as in UTXO’s its impossible to know which transaction went where.

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#1159
  1. The model frees up space in the ETH block allowing for more transactions to be processed with greater speed and space is allowed for the smart contract code and the state of the contract.
  2. For ETH only the balance of a person is kept and you can determine who sent it. In Bitcoin one has to sum all the relevant individual transactions (many with multiple outputs) to get the total. Since an operation must be performed to determine the Bitcoin balance, greater privacy is achieved with ETH.
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#1160
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

faster transaction, less data to broadcast onto the blockchain, more transaction can be processed per block.

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

with Bitcoin, you can track back the origin of every UTXO back to the producing miner. and reconstitute where your BTC is coming from
In Eth, you only have transactions and no UTXO, so it’s a movement of ETH from a private key to another private key. traceability is diminished. IT is fungible, while BTC is non-fungible. Also, in the UTXO model you can send transaction back to you and there is no way to figure out which transaction is send to another private key and which transaction is sent back to you.

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#1161
  1. Account model transactions require less computing to send a transaction, due to the smaller size.
  2. Accounts are more centralized than UTXOs, and there is no change returned to obfuscate the indetity of the sending account.
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#1162

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Lower fees and shorter confirmation time for a transaction due to smaller size (takes up less space of hardware storage capacity) and more transactions can fit within a block.

  2. How is the account model not as great as the UTXO model for privacy?
    There are no inputs and outputs that can be tracked, only an update of the current balance and it is easier to follow the funds transactions and therefore to identify the sender and the recipient.

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#1163

  1. One block can store more transactions, increase storage efficiency.

  2. The account model is much simpler, it goes from a to b. UTXO can be spent to multiple accounts making it harder to track and know which address is the same as the senders.

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#1164
  1. Using less space is a benefit as I suspect it allows Ethereum to have achieve higher TPS.
  2. The account model identifies who is who from the start, which is why it is perfect for transparency and transactions. With UTXO the identity of the account holder is not know, just the address.
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