Homework on UTXO vs Account Model

Ethereum 101
#1245

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefit because the Ethereum node requires less memory resources to process transactions.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model is less private because because there is no anonymity as to who is receiving a monetary transaction.

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#1246

1.) Saving space is a benefit because you can hold more transactions in each block.

2.) The acct. model is not as private because each transaction is from A to B, (1 TX at a time) so you can easily see who got what amounts. With UTXO models you can send to multiple recipients for various amounts so no one knows exactly who received what amounts or if you just didn’t send it to yourself altogether.

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#1247
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? More transactions and storage efficiency.
  2. How is the account model not as great as the UTXO model for privacy? ETH is more fungible as 1 ETH = 1 ETH…UTXO’s on the other hand can have multiple payouts.
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#1248
  1. Because it saves space.
  2. The UTXO Dosent let you see who sent money to who.
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#1249
  1. It saves more block space that allows more data to be stored in a block.
  2. Because you can see the accounts and you cannot distinguish between coins on the network.
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#1250

  1. More transactions can be accommodated in a block. It means faster transaction rates and less fee.

  2. Looking at UTXO model transaction, it is not possible to guess what amount goes to receiver and what amount returned back to sender. Whereas in account model amount in each account is visible and only amounts are updated in the database after each transactions. Account address remain same. So looking at transaction anyone can know how much amount available in a particular wallet. In this prospect account model lacks privacy over UTXO model.

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#1251
  1. you can add more transactions, increased storage efficiency.
  2. You can see who sent who money and know exactly.
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#1252

By not requiring as much space (for the account model compared to the UTXO model), you’re able to process bulk transactions for each block. This, in turn, lowers fees because more transactions can go on the same block.

The main reason why the UTXO model is superior for privacy is that the UTXO model uses new addresses for each transaction. By using the account model, you centralize your transactions which can be used to track your spending.

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#1253

Homework on UTXO vs Account Model - Questions

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    – This is a benefit to block size. Each block can hold more Transactions. This is a simplier model and aids in latency and speed of the network.

  2. How is the account model not as great as the UTXO model for privacy?
    – The account model of ETH makes it easy to trace both the sending and receiving addresses and as a result is not as secure as the UTXO model of BTC where a transaction can be sent to addresses owned by someone else as well as to addresses owned by the original sender and it is difficult to distinguish between the owners of the destination addresse(s)

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#1254
  1. Less space means that more transaction can be handle at same time (also considering the enormous number of ERC-20 token in the Ethereum blockchain).
  2. Different from UTXO model in Bitcoin blockchain, I can send at same time BTC to me and another address without distinguish which one is mine. In an Account model, each transaction simply change the balance in those accounts involved. This means that it more easy to follow the destination address.
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#1255
  1. Smaller more compact code blocks make a faster more efficient system.
  2. With the UTXO model transactions can be used to hide your identity by utilizing the input/output functions. With the account model this is not really possible.
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#1256
  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?
  1. The account model saves more space for blocks than the UTXO model which leaves multiple UTXOs from one transaction.
  2. The account model is simple and transparent, easy to track transactions but with the UTXO model a transaction that leaves multiple UTXOs cannot tell who the money is transferred to.
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#1257

Homework on UTXO vs Account Model - Questions

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a storage problem – it means you store less code into the Eth blockchain. In the long run you don’t need to keep buying hard drive to meet the storage demand.
  2. How is the account model not as great as the UTXO model for privacy?
    Account model only do one transaction at a time, so outsiders can tell if you send your eth to someone else or to yourself, easier to track. UTXO can cluster transactions at once so outsiders cannot tell if how many people you are sending to (including your own wallet)
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#1258
  1. No UTXO means reduced size of block chain and simplified transaction record when compared to bitcoin.
  2. No UTXO also means that a history or an eth coin associated with any particular account cannot be established, this improves fungibility of the eth token.
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#1259

-Less space per transaction equal to more transactions per block. This is important given how many dApps are running on ETH. Less space per transaction also means reduce blockchain size which allowed increased amount of average people that can be a node which leads to more decentralization.

-For the account model you are either sending money to someone else, or to another address you own. You cannot do both. With the UTXO model, you can ‘mix’ transactions together, doing multiple transactions to both you and someone else.

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#1260
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? The benefits are simplicity, familiarity, and fungibility. Fungibility is increased since merchant blacklisting of coins used for illicit activities is difficult to accomplish.
  2. The account model does lessen privacy because it is easier to identify where coins come from and to whom the coins are send to. In the UTXO model the wallet addresses change and therefore not easy to connect a transaction to the sender or receiver.
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#1261
  1. Faster and more efficient.
  2. Privacy is limited. you cant trace a transaction through a chain with input/output history.
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#1262
  1. The blocks can include more transactions which helps with scalability. Lower storage costs also help to reduce the potential of centralisation that may occur if costs become prohibitively expensive, raising the barriers to entry for the average person.

2.It’s easier to follow transactions with the account model, where as with the UTXO mode, one output may be transacting with multiple addresses.

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#1263

  1. The account model is more efficient with faster transactions, it saves space and reduces the size and growing of blocks.

  2. The account model is not so great for privacy it easily to know where the money come from and where you send money to. UTXO you can have several outputs at the same time with privacy it makes harder to track and know which address is the same as the senders.

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#1264

  1. More simplistic code saves space within each transactions allowing more per block

  2. UTXO gives the ability to send some change back to yourself while making it more difficult to “follow the money”. Account model makes it very easy to see exactly how much an account sent/receives.

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