Homework on UTXO vs Account Model

Ethereum 101
#1325

Q1- The account model doesn’t require much space as the UTXO model, why is that a benefit?

It is simpler to express in code than the UTXO model so every transaction is smaller and the files each node has to maintain grow slower. Also, the accounts updating balances after each transaction rather than tracking UTXOs results in fungibility for the coins: you can’t trace the history of each unit of ETH in the same way you can units of BTC. Units of BTC can theoretically be tracked back o the miner and, for example, if they have been used in scams or nefarious purposes at some time in the past, arguably you can say that those units of BTC are not as desirable to hold as others (something that decreases fungibility of BTC)

Q2- How is the account model not as great as the UTXO model for privacy?

With the UTXO structure, it is possible to hide your intention by sending money back to yourself as well as to your intended recipient both at the same time in the same transaction – and it is not easy for anyone to tell which is which.

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#1326
  1. The blockchain is faster because the blocks can be smaller or include more transactions. Also, the if the data requires less space, the full nodes are easier to create and that brings more decentralization of the network.
  2. The transaction are public in both models, but in the UTXO model is more private because is more difficult to associate the UTXOs to a person.
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#1327

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    This benefits using less space in the blockchain that could help speed transactions also allowing that space to be used for other data, ie: smart contract info.

  2. How is the account model not as great as the UTXO model for privacy?
    Because the UTXO model can be used for greater anonymity, meaning you could send several transactions out to people including yourself to maintain some sort of privacy and anonymity.

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#1328
  1. Decreasing the space required will also decrease the hashpower needed to append the tx tot he blockchain so less energy will be needed on the mining end and cost will decrease on the user end. This helps the network as a whole too as it reduces total traffic.
  2. Privacy is hindered in the account model as each tx will have its exact transaction amounts available to be seen on the blockchain. It does not allow for multiple outputs which can be used to obfuscate the transfer of funds. For example, with the UTXO model, you can send outputs back to yourself or to another wallet which you own, making it more difficult for a 3rd party to trace the ownership of those funds.
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#1329

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

Lighter network, more storage, faster processes in the aspect of data size.

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

When UTXO keeps multiple outputs as one txn, therefore you can’t see those seperate inputs where they are from, account model gives the exact values instead.

Interesting point, vice versa, if you have faster process out of data weight costs privacy at the opposite.

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#1330
  1. Any space saved in a blockchain is a benefit. allows for better and easier scalability
  2. There is no traceability with the account model.
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#1331

  1. While the account model requirers less space it then results into much less time and smaller fees.

  2. With the account model you are able to see who is being paid due to the lack of outputs and inputs. With UTXO you can pay out multiple outputs with different addresses, allowing for more security and non fungibility.

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#1332

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? - More simple transaction equals faster transactions and a block can store more transactions.

  2. How is the account model not as great as the UTXO model for privacy? - Not as private because it shows the balance transfers from A to B as opposed to having multiple UTXOs making it more difficult to identify outputs.

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#1333

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The transactions require less space and is more fungible. Each eth is the same and you can’t trace the history of all gweis. It also removes money laundering issues and you don’t need to consider if you want a “fresh” eth for making sure that it doesn’t have a criminal history.

  2. How is the account model not as great as the UTXO model for privacy? -
    because when you send multiple UTXO to one sum and split that sum up where one of the pieces goes back to you, it’s more difficult to track which adress recieved each UTXOs

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#1334
  1. More transactions can be put into a block.
  2. All transactions are visible, and you cant send money back to yourself.
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#1335
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • Nodes and Mining rigs are run by individuals and not companies with a lot of funding. Saving on space will increase speed and be less of a burden to miners as well as nodes on the network which in turn leads to higher scalability.
  1. How is the account model not as great as the UTXO model for privacy?
  • From the outside, you can track a single transaction from one account to another while in UTXOs, from the outside, all you see is multiple inputs getting into an account and multiple outputs going into the mempool which is hard to track as a whole but easy to track when it comes to individual UTXOs inside the network.
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#1336

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Transactions take smaller space. Also, it’s fungible.

  2. How is the account model not as great as the UTXO model for privacy?
    You always see who is the sender and the receiver. In UTXO the outputs can be multiple and there is no way to assess whether you send the bitcoin to another recipient(s) or yourself.

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#1337

1- The utxos are very heavy in data. This space saved can be used to increase the transactions in each block

2- The utxos model kind of masks who the real recipient is .from the outside. even though its possible to trace the transactions.

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#1338

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Transactions are more fast and the storage capacity is better.

  2. How is the account model not as great as the UTXO model for privacy?
    With UTXO you can track all output and inputs. But you can make it to follow who spent to whom using several accounts. Furthermore you sent as a change of the outputamount money back to yourself. So it is not clear which Adress is the sender adresse. In the account model it is clear who receives money.

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#1339

  1. The Ethereum account model not requiring as much space as the Bitcoin UTXO model is a benefit as it is more inclusive, that is, it allows participants with more primitive hardware to enter the network.

  2. The account model is not as great as the UTXO model, in terms of privacy, as transactions are easier to follow, as the sender and receiver are public, whereas with Bitcoin one can have multiple outputs which are harder to track as they are seen going to the mempool but then can be sent to one’s own wallet/s or many other wallets.

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#1340

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
The Block can store more transactions.
But above all, Theoretically, transactions are faster and with less fees.

2. How is the account model not as great as the UTXO model for privacy?
With de account model the ETH is more fungible than BTC.
However, in BTC transactions can have several inputs and several outputs (one of them can be ours). In this way, it is hard to know for sure the identity of the outputs.
With account model we can see balance transfers from A to B.
(There are not multiple outputs in the same transaction)

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#1341
  1. It is easier to store more transactions thus increasing the speed of the network and the amount of transactions per second.
  2. While ETH is fungible and can’t be traced back through the entire chain of transactions, it does not allow for the sender to hide the money they send back to themselves through different UTXO’s.
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#1342

1- Because there are no specific inputs and outputs to be put in and it is just the balance numbers changing, this allows for faster transaction times due to less or no space being required as there are no UTXO data needed to be stored.

2- Account model shows the balance of the account and which account has sent the money from a specific account. You can’t see which individual coin represents which transaction. Whereas the UTXO model is tracking the UTXOs and the transaction traceability is possible.

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#1343
  1. More transactions can be stores in less amount of memory and any space saving is a benefit for scalability
  2. It is not as secure because you can see directly who address ove ETH to whom because it is just contability without UTXOs
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#1344

1- the account model is better because it requires less space than the UTXO model. Additionally, all ether is the same in the account model.

2- The UTXO model is better because you can track the UTXO’s all the way back to the coinbase. You can see where each UTXO was spent along the way.

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