Homework on UTXO vs Account Model

[gmarcotte]

@filip

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

The UTXO model uses more memory and a full node needs to have a copy of the whole blockchain. Wallets need a list of all the UTXOs of the wallet in memory to conduct operations. The account model is simpler you just need one number for the balance,

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

UTXOs are done by having transactions with multiple inputs and outputs and some of the outputs could be back to the sender.

its like paying some one $50 with a $100 bill. your transaction is give the 100 dollar bill to fred and fred gives you back change or two $20s and one $10. so in this case you have one input and four outputs. makes it harder to figure out what actually went were.

The account model is just one input one output. a lot easier to figure out whats going on.

[thecil]

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

@AsHappyAslarry

In bitcoin every single transaction can be followed UTXO by UTXO so im not sure the privacey in ETH is better than the UTXO model. in etherium you can see a transaction has sent Ether to a specific account but once in the destination account you cant discern one eth from another.

Indeed sir, now about not being complete sure, just take this example: go into a BTC block explorer, chose a random tx, try to figure it out what funds goes to who…it will be very hard for you to track those funds. Now if you go into etherscan, same process, you might find that reading the block explorer of ethereum is quite easy compared to UTXO model. That is basically the “layer” of privacy that UTXO model offer against Account model, it’s harder for humans to do the manual process of tracking the funds provenance from a person/address/account, while in the Account model is quite easy.

Hope you find this useful.
If you have any more questions, please let us know so we can help you!

Carlos Z.

[Laclaire1]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   The account model, even though it includes more items than the UTXO model (transactions, smart contracts, states) is smaller allowing for more transactions in a smaller space.

2. How is the account model not as great as the UTXO model for privacy?
   The UTXO model is completely transparent whereas the account model provides less information in the transaction just providers sender and receiver accounts.

[cherrysoft]

1. One benefit would be that it makes it easier for thin / light clients to access account data another would be to improve the economy of storage.
2. The UTXO model permits you to send money back to yourself obfuscating the transaction trail. The Account model does not have inputs or outputs which prevents you from sending money back to yourself as an output of a transaction - it simply updates the sender and receiver accounts allowing for easier scrutiny of the amount in the tx, the origin and the target address.

[Juta_Kukjane]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   It means there’s more space in the the block for other transactions and smart contract code.
2. How is the account model not as great as the UTXO model for privacy?
   Money can’t be sent back to me. Easy to know where the money come from and where I send it.

[Mclovin]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   Because its using a running ledger system with a total insead of having to calculate utxo’s
2. How is the account model not as great as the UTXO model for privacy?
   In the utxo model with so many inputs and output creating one multiple transactions it is much harder to know exactly which and how much is set to each address.

[ThisIsNotStefan]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   It’s easier to store on the blockchain.

2. How is the account model not as great as the UTXO model for privacy?
   The account model doesn’t allow in a single transaction to send a quantity of coins to multiple addresses. Also the balance is always visible for a wallet, unlike in UTXO where a balance can be calculated only after “summing” all UTXOs.

[MarcAndre_Morissette]

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Blocks can include more transactions, which is crucial for ethereum which has hundreds of ERC20 tokens settling on the ETH blockchain. The account take more the present state ans less traceability than BTC block that let you go back until the miner who created first.

2. How is the account model not as great as the UTXO model for privacy?
There are no change wallets in Ethereum. The impact is that, for Ethereum, the destination address(es) are the ones originally specified. Bitcoin, on the other hand, sends any unspent UTXOs to a “change” wallet, and it therefore is more difficult for someone to know which of the addresses sent to are new individuals vs the sender’s change wallet.
ETH follow more who is who and it is easily to know where the money come from and where you send money to. UTXO model is hard for public to tell which amount of money goes to where, because one transaction could have multiple outputs.

[CryptoNanni]

@filip

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

Basically it reduces block size & speeds up transactions .

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

The Bitcoin model of having unspent transaction outputs means there can be more than one recipient of an output so there’s is no way to tell who’s receiving which output in an account model the input & output are a one to one transaction so it’s less private.

[Marlic]

1. The account model uses smaller transactions and thus makes each block smaller
2. In the account model balance goes from one account to the other and it is easier tracked. In account model it is clear what is the balance of each account

[cmerced1]

1. This enables way more space for transactions
   2.Ethereum does not have UTXOs, which in effect will not have multiple addresses to send to.

[Jedi]

1. The account model provides the extra space needed to increase block storage capacity and reduce transaction size. Smaller transactions means smaller fees.

2. The account model makes it more clear who sent what to whom than the UTXO model, as there is no ‘change’ (which, in the UTXO model, can be sent back to yourself) that can result from transactions, and that the transactions aren’t obscured by multiple outputs.

[raggedpants77]

#1.- Account model doesn’t require as much space as utxo ,so more transactions per block , increases scalability.
#2.- account model is not as secure as utxo’s because they are more transparent.

[Michael_Lobzhanidze]

1. because you can include more trabsactions in the block.

2. in UTXO you can send money back to yourself because multiple inputs and multiple outputs allow you to do it. there is no way to tell which was your account and which was not. while account model has no inputs and outputs. it simply update the accounts and you cant tell the block to take money from your balance and send it back to you.

[Joonas]

1. saves space on the blocks making the blockchain faster. It is easier to code
2. every eth token is the same as any other ethereum token, as in bitcoin you could follow every tokens past.

[russcontact]

Less space means more transactions can be placed in a block and potentially transactions can move faster because they are lighter.

The account model is more clear where transactions came from.
You can not have multiple recepiants recieving transaction as in utxo btc transactions?

[bobmaucher]

1. The lower space required by the account model is a benefit because it results in a smaller blockchain file for the same transactions, and faster node syncing.
2. Each transfer in the account model is traceable back to the original contract / mining.

[Tatino]

1. Save space in blockchain in fast growing industry is always benefit. More space mean than more transactions can fit in block, reduce transaction fees.
2. Ethereum account model is less private because you can easily see all transactions that been received or sent.Every transaction only basically change balance ( plus or minus ). In Bitcoin UTXO model is no accout. It is basically bunch of UTXO`s. So every transaction is bunch of UTXO on input and some output. Part of output is often going back to wallet as change… This make Bitcoin transaction much harder to track.

[BoxNRhinoz]

1. It is a benefit that the account model requires less space because transactions are smaller keeping fees lower.

2. The account model is not as private as the UTXO model because all account balances are public on the blockchain.

[Renko_Deloach]

@filip

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
2. How is the account model not as great as the UTXO model for privacy?

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   It uses less block space, wich means less fee
2. How is the account model not as great as the UTXO model for privacy?
3. Individual Bitcoin UTXO history can be followed and multiple transactions can be sent at one time including back to ones self. The Ethereum account method just shows the ETH “coin” balance. This means that 1 ETH is always 1 ETH if you compare them to each other. This doesn’t apply for BTC