Homework on UTXO vs Account Model

Ethereum 101
#1445

1.It account model (ethereum) isfaster to show balance and do transactions because there are no input and output saved showing all transactions

account model allows you to see the actual accounts involved in the transactions instead of UTXOs

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#1446

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Saving a blockchain space is a benefit, so it can store more transactions.

  2. How is the account model not as great as the UTXO model for privacy?
    Account model makes it easier for public to follower every transaction. UTXO model is hard for public to tell because one transaction could have multiple outputs.

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#1447
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

As the blocks are smaller those can include more transactions and so can be processed very fast due to the low amount of data being transferred.

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

Because you can always track the address of the recipient which is always different from the sender.

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#1448

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The more space in this model gives the benefit of faster transactions as well as more TXs to be completed per each block.

  2. How is the account model not as great as the UTXO model for privacy?
    On Ethereum the account model shows the transfer from one account to another account. It does not allow the ‘doing so’ of two TX’s being sent at the same time. If two people own a business and are to receive compensation at the same time 2 transactions would have to be made instead of one with two address sends like the UTXO model.

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#1449
  1. More transactions can be placed in blocks as well as faster transaction time.
  2. Because for every transaction you can only send ETH to one other person at a time.
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#1450

  1. More transactions will fit on a block

  2. With UTXO model transactions can not be traced like the account model.

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#1451

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?
  • Because the account model allows for more space on the blockchain for data i.e. smart contracts. With a UTXO model, there is not a simple balance to show you what is in your wallet. A UTXO wallet i.e. BTC, adds up all UTXOs to give an amount that can be spent. In essence, a balance but not in the way that the account model shows. The account model simply shows the amount that can be spent, not the sum of spendable amounts, i.e. UTXOs, which take up more space.
  1. How is the account model not as great as the UTXO model for privacy?
  • While it is easier to track a UTXO transaction back through the Blockchain, it is harder to attach it to a specific wallet or address as each output can be split up into several UTXOs thereby making it more difficult to track and associate with an individual. In this way, it provides for more privacy but at the same time is less fungible. The account model keeps track of account balances for each address that can be associated with an individual thereby making it less private but, is more fungible due to not being able to track it through the blockchain. With UTXO based payments, it is possible to split up a payment in one transaction, into several UTXOs that arrive at different addresses.
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#1452
  1. It’s a benefit because it makes transaction size smaller. As the transaction size is smaller, it follows that the transaction fees are also smaller. Also if the transaction size is smaller then it will take up less space which means that you can put more transactions into the block.
  2. Privacy is not so great in an account model because unlike with the UTXO you cannot disguise your transactions by sending money to a different wallet that you also control. Both the account code and balance are public.
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#1453

Excellent answers, It’s easy to understand. Please keep them like that :muscle:

Carlos Z.

#1454

  1. You can store more transactions per block because you don’t need to store inputs and outputs because you just update numbers in the database.

  2. Because you can track all utxo’s all the way back to its creation and by doing that you can see the history of a utxo and in ethereum you can’t do that at a ‘‘coin’’ level.

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#1455

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Answer: Because the account model doesn’t require as much space as the UTXO model, there is more space in a block for more transactions and smart contract code.

  2. How is the account model not as great as the UTXO model for privacy?
    Answer: The account model is not as great as the UTXO model for privacy because anyone can view the transaction history of a particular ethereum address. On the other hand, the UTXO model allows a user to sensor their transactions by sending to multiple recipients in one transaction, which could include an address owned by the sender. This can make it more difficult to trace a particular BTC address.

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#1456

Response:

  1. By ETH not storing the UTXO’s of the txs taking place, it takes up less data and allows it to be quicker than BTC. (more tx/sec)
  2. Privacy is not the focus of ETH at all since the account model allows anyone to see all tx (i/o) that have been associated with that address on the blockchain. It is so much more easier to follow as opposed to UTXO.
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#1457
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? More space for transactions per block, which increases tx/sec.
  2. How is the account model not as great as the UTXO model for privacy? Less private
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#1458

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Fungibility and space-saving is better than UTXO

  2. How is the account model not as great as the UTXO model for privacy?
    Higher degree of privacy for new addresses, the coin does not have an owner

#1459

  1. Because then txs are smaller (in size) and therefore faster processed, because of low data size.

  2. Because you can not send money back to yourself. From the outside you can see exactly how much money you sent (spend) and to witch address

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#1460
  1. more space in blocks -> more tx -> lower fees
  2. you can have multiple inputs and outputs, just one origin and one target account.
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#1461

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

I do not understand quite well the answer, could you please explain a little bit ?

If you have any more questions, please let us know so we can help you! :slight_smile:

Carlos Z.

#1462
  1. More information can be stored in the block using the account model. This allows more space for smart contract information as well as other transactions.
  2. You can see exactly where a transaction went using the account model. You are not able to send part of the transaction back to yourself to conceal the amount spent.
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#1463

The account model doesn’t require much space as the UTXO model, why is that a benefit?
Because each block can hold more transactions, it increases scalability
How is the account model not as great as the UTXO model for privacy?
Because each transaction has record of who sent, how much, to who

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#1464
  1. On most blockchains you pay a fee for the block-space you use so less space equals less fees. It also lets blockchains handle more transactions per second with that same resources.
  2. In a UTXO based blockchain its easier to send the “change” of a transaction to 1 or more addresses you control. That way its harder to know when looking at the blockchain which UTXO is yours and which UTXO went to the person you paid.
    In an account based blockchain you usually use the same adress for multiple transactions which is bad for privacy.
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