Homework on UTXO vs Account Model

Ethereum 101
#1345

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Less storage needed makes for a quicker and more streamlined blockchain network.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model cant be traced back like BTC and the UTXO model can. Also, on ETH you can basically see who received what money at any time

1 Like
#1346

Account model doesn’t requires tracking of coins or funds so there are no UTXOs to track, accounts are simply debited and credited at the end of transaction which frees up space in the block for more transactions.

Its easier to track the owner of an account that just received a transaction in an Account model compared to UTXOs in which transaction with multiple outputs one or some UTXOs can be brought back to the same owner while giving the image of funds leaving the wallet.

1 Like
#1347

1.- Because the it does not occupy as much space in each block as the UTXO model does.

2.- Because it is more transparent as to where the coins come from and to which address they go, not being possible to have multiple outputs.

1 Like
#1348
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It reduces the blockweight. So you can have more transactions stored in each block.
  2. How is the account model not as great as the UTXO model for privacy?
    When you send ETH, you send it from account tot account in a “balance structure”. That makes it easier to track down the sender and receiver. The in - and output structure in bitcoin (made by wallets) are difficult to read because you can send to different addresses in one transaction.
1 Like
#1349

1 its more cost effective and transactions happen faster
2 For the transaction speed you sacrifice security ,in that you cant send money to yourself and remain anonymous.

1 Like
#1350

  1. Because it will reduce the block size and more transactions can fit in one block. Plus, if you can save any space, it will benefit the whole system.

  2. Because in UTXO model you can send BTC to more recipients at the same time. Moreover, it is possible to all the recipients are the sender him/herself, or just a part of BTC will be sent to the recipients and the other part is sent back to the sender and these operations cannot see from the outside. On the other hand, a BTC coin can be tracked way back to its origin (coinbase transaction to the miner). In the account model you cannot send back funds to yourself (except only if you control the recipient address also), thus your balance can be tracked with more ease (reduced privacy).

1 Like
#1351

  1. Transactions would become more efficient and faster and allow more things to be built upon the eth network.

  2. Because it just a basic debited and credited system that anyone can view and follow with something like etherscan.

1 Like
#1352
  1. Account model does not require much space because it is basically just manages the balance of a transaction between the sender and recipient. This simple transaction means less space and therefore a faster more efficient process.
  2. The account model is not as good as UTXO model for privacy as it provides more transparency and makes it difficult to conceal where money is being sent and to whom.
1 Like
#1353

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

  2. How is the account model not as great as the UTXO model for privacy?
    Transactions are traceable, so its easy to follow from where is coming and who will receive it.

1 Like
#1354

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

With ETH the account model taking up less space than the UTXO model of bitcoin is a benefit because the ETH network uses turing complete programming language which takes up a lot more space than bitcoin’s simple SCRIPT programming language. This in turn then helps ETH with scalability issues it already has and makes it a bit faster, more efficient and each ETH or derivative of eth, is more fungible than each bitcoin or derivative of bitcoin.

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

Due to the nature of how bitcoin uses UTXOs, when any transaction is made with bitcoin one of the output addresses shown on the blockchain is to the recipient and one will be the sender sending bitcoin back to themselves minus the transaction fee. This is hard for anyone looking at the blockchain transaction history to work out which address is which. Ethereum’s account model shows exactly the sender and the recipients addresses and how much was sent making privacy non-existent.

1 Like
#1355

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Transactions require less data to encode into the blockchain. This allows more transactions and higher speed of confirmations on average.

  2. How is the account model not as great as the UTXO model for privacy?
    In the Account Model, there are no “change addresses,” so you cannot obfuscate the origin of ETH coins. It is clear that one account credited another account, which is not as clear with BTC.

1 Like
#1356
  1. The account model allows for much faster transactions and either subtracts or adds to the balance.
  2. The account model is better for fungibility but you can see exactly how much money you sent & to which address rather than being split up into inputs & outputs.
1 Like
#1357

The account model doesn’t require much space as the UTXO model, why is that a benefit?
Transactions take less block size, making faster and more efficient transactions.

How is the account model not as great as the UTXO model for privacy?
It is easy to track balances in the account model, money goes from A to B. In the UTXO model, there can be more than one output in one transaction making it possible to hide who you are sending. UTXO is harder to track.

1 Like
#1358

Less space means more transactions can fit in a block. IT also means processing is faster, and it’s a simpler model making it easier to use for programming.

It is easier to track funds from one account to another, and it is not possible to send funds to yourself, unless you control another account.

1 Like
#1359
  1. because it means you can put more data in one block and the fee will be lower
  2. UTXO provides a higher level of privacy, as long as the users use new addresses for each transaction and for the account model you can see how much it was sent and to which adress in a single tx.
1 Like
#1360

1.) The account model taking up less space, makes it easier to move transactions, because it’s more simple and lighter, making it faster.
2.) The account model is less private because the transaction goes from one account to another, instead of have a change wallet, so it’s more traceable.

1 Like
#1361

1- The account model uses less space on chain, since the Txs use less space.
2 - The account model can only have one output, and outsiders are able to see exactly where the ETH went and what the balances are. In UTXO, you could sent to multiple addresses and some or all could be back to yourself… On the flip side, you could conceivably track a UTXO from BTC all the way back to it’s creation and potentially have one BTC worth less than another due to a different (shady?) past.

1 Like
#1362

1 - The transactions are lightweight thus reducing the whole blockchain size.

2 - Because all transactions are simple movements in between accounts, from account A to account B, easy to trace transactions but not the ‘coin’ itself.

1 Like
#1363
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    When you have smaller transactions, the network is faster, you can fit more transactions to a Block.
    The Network is more efficient / more scaleable.
  2. How is the account model not as great as the UTXO model for privacy?
    Its easyer to traceback transactions with account model. With UTXO model you can have many outputs in one transaction, which does make it harder to trace.
1 Like
#1364

  1. Less space, means less resource demand and less effort to the network. Every space saving is a benefit. It also allows for faster processing.

  2. That’s because it is possible to track a transaction in a much simple form, by the fact that an ethereum blockchain visualisation allow us to know how much money was sent, from which address in a very clear way. On Ethereum funds goes from one address to another, they don’t go to several.

1 Like