- 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.
- 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.