Homework on UTXO vs Account Model

  1. Every transaction is smaller, which typically means lower fees (not as of late with eth lol), easier transferable blocks which makes for faster processing

2.Utxos are more private because with Account, the code is public, as well as the account balances. One can only see individual utxos not balances or the complete path of several utxos from 1 user for instance.

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1.- It is a benefit because it is a network of computers that are running the protocol, if the account model does not require much space it will be faster to be propagated among the network.
2.- Because the account model makes the transaction easier to trace

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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?

Less space, more efficient. Less info has to be sent from one node to other. It is faster, more simple.

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

You can not send eth to Yourself. Each and ever transaction is transparent. Every1 can see who sent the coin and to whom it was sent. You can not hide anything.

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

Each transaction just update accounts, basically an update of movement of funds from one account to another, there is no notion of UTXO where multiple inputs and outputs have to be considered. In this way, the steps are more straightforward and the execution of this update require only little memory (block chain) space.

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

In account model, the source of funds and destination of funds are clearly spelt out, which is traceable and trackable. This is not so good for privacy.

In UTXO, Bitcoin uses a wallet as a transitional “storage” juncture where there are multiple inputs and outputs, it is not so easy to track and trace the source of funds. The value of the funds will also change due to the passage of time. It is more conducive for privacy.

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  1. So nodes can be smaller as they don’t have to store utxos. Smaller nodes->more people can set up nodes->more secure network.
  2. With the utxo model you can send several utxos in a single transaction, for example 4 with only 1 of them going to the targeted recipient and the rest back to yourself. From the outside you can’t tell which of the utxos go to who so it adds anonymity to the whole process.
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  1. On the Ethereum blockchain, you have an account model instead of the UTXO model. The EVM will update each account according to transactions, subtracting ETH from one account and adding it to another. This takes less computer memory/code/text, which allows for more transaction per block.

  2. The account model gives less privacy, but more fungibility than the UTXO model. Ether is more fungible because you cannot trace the path of an ether along the blockchain like you can with bitcoin.
    The UTXO model, while more traceable, enables more privacy because you can send a UTXO with multiple transactions, including sending money to yourself. There is no way for someone reading the blockchain to know if that BTC was sent to two different recipients, two of your addresses or one recipient and one of your addresses etc.

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  1. The benefit of the account model in not requiring much space is that blocks can store more transactions and smart contract code using less power. It also saves processing time (not fees though which is a big problem - until Eth 2.0 is eventually deployed!)

  2. Because you can see where transactions come and go and to whom and in bitcoin you can trace the UTXO’s but you cannot know who is receiving it

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  1. It benefits by being more efficient in terms of file size and the speed at which they can be read.

  2. It is not as private because the amount transferred between two addresses cant be hidden.

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  1. Faster transactions because not as much information stored on the blockchain.
  2. You can’t hide where the money goes by sending some or all of it back to yourself.
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sure :slight_smile:

The track record needs a lot of space, because it saves all the ways a token take to get from mining trough other wallet s into my wallet for example. That information needs a lot of space.

In Eth you don’t have the full track record from each coin. It is just a balance update like we have in bank accounts. If I send you 1 Eth, it is just a minus 1 in my account and a plus one in your account. You don’t get the full record from the coin I send you. You only see I send you 1 Eth, but not where I was get it from.

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

The account model is good because the transactions contain less data and therefore more data can fit into blocks which also allows for more TXs and greater scalability.

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

It’s easy to trace the money spent because the account model in Ethereum is a public ledger and anyone can easily see what wallet addresses have spent and received money. It’s very similar to having a bank account and if you know who the bank account belongs to (if it were public info) you could easily see the money going in and out of the account.

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  1. An account model will be able to handle more volume on the network.
  2. With the account model you can always see the account balance and you cannot “confuse” the reader by sending funds back to yourself as you can with the utxo model.
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  1. With less data the entry level for Ethereum nodes is a lot lower meaning you don’t have to have a huge amount of storage capacity to run a full node.

  2. With the UTXO model the total UTXO has to be spent with this you can create multiple outputs with 1 being a payment to someone else and multiple other transactions being paid back to you. With Ethereum you can have fractional spending and it is a lot easier to track 1 transaction from 1 wallet to the next.

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  1. smaller, easier transferable blocks and faster processing

  2. The account model is not as good for privacy as you can track the address of who has been paid, whereas the UTXO model can pay out multiple accounts one of which can be your own.

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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Takes up less space in the Transaction and in the overall Blockchain, means less space is need for storage, so more volume may be handled by the network.

  2. How is the account model not as great as the UTXO model for privacy?
    The money can not be hidden, the amounts transferred can be seen,.

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  1. The account model only adds the information in the tx that add balance or subtract balance. However, the UTXO model adds all inputs and outputs of a transaction. Therefore the account model takes up less space in the blockchain.

  2. The UTXO model allows for individuals to hide their txs among other tx when sending tx to other parties. This makes it difficult to identify tx as the sender can send multiple transactions to addresses he owns and in the midst of it one transaction to an address he doesnt own, this makes it hard to know how much btc was actually sent by an address. The account model however just sends and recieve tx whoilst adding or subtracting your balance, this makes it harder to hide your tx for privacy.

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  1. more transactions can fit into each block
  2. With the UTXO model transactions are split and are harder to trace. With account model you can easily trace which address and which one received funds
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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    using less space on blockchain
  2. How is the account model not as great as the UTXO model for privacy?
    from out side it is possible to see how much money went to which address.

in case of UTXOs how is it that we cant go back from the out put to input and track which utxo is exactly going to which address but you said in BTC each coin is traceable?

  1. I would say it is a benefit because now the blockchain can hold other information rather than store all of the data within a UTXO.
  2. The account model fully shows where all of the money is going within a transaction. A UTXO can somewhat hide how much a person is getting because you can send money to yourself within the same transaction.