Homework on UTXO vs Account Model

Ethereum 101
#1545
  1. The account model can result in smaller transaction fees and greater scaling
  2. The account model allows you to easily track where the money is going
#1546
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

One benefit is that the transactions take place quicker. Furthermore this approach is beneficial for both miners and account holders because less data space is required which means cheaper energycosts and therefore is less expensive and results in faster transactions on the blockchain.

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

The utxo model allows multiple transactions in the same transaction whereas the account model only allows for a single transaction between 2 addresses. One result is that It’s easier to track transactions which is worse for privacy.

#1547
  1. You can fit more byte code with regard to smart contract specifics rather that coding complex input and output scenarios which are common in Bitcoin transactions. The Ethereum platform has a simple deduction of coin from the sender/s and simple posting of the addition of coin to the receiver/s. Also, due to the lack of tracking as to source of any particular coin, there is fungibility whereas all Ethereum-based coins are identical and cannot be differentiated by a shady background even if there is one. So, any coin has the exact same value as any other coin; there is a desired consistency. The fact that Bitcoin can be traced may lead to the owner being unable to trade a particular coin due to its questionable origin; it could be blacklisted.
  2. There is less privacy as the amount spent and received is readily discerned and that information is stored on the blockchain; there is no “change” to be directed back to the payer so the transaction as a maneuver may lose some of its strategy potential if applicable.
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#1548
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?

A reduced size block makes transactions easier to transfer and faster to process.

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

Account Models are easier to track

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#1549

  1. Lower fees, less congestion in the blocks,

  2. Acc code and acct baleen are public

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#1550
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Since the account model is just dealing with the balance between 2 accounts in a transaction by sending an ETH coin from one to the other and doesn’t use inputs or outputs like UTXOs in bitcoin, this leaves the size of the transaction quite small and takes up less space on the block. This would lead to faster transaction times and smaller transaction fees. Fast forward to this year, the demand has begun to overwhelm the ethereum network and scaling has become an issue because of the DeFi narrative driving heavy interest into Ethereum.

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

Since the account model doesn’t require or use inputs and outputs like UTXOs which benefits it from being smaller in size to take up less space on the block, but you can see how much and to which address it went to in that transaction. Where with UTXOs, if you wanted to give change to yourself, you could have multiple of different outputs where at least one of those outputs is going back to your address.

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#1551

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?
    The account model does not keep track the multiple inputs and outputs as in the UTXO model. It is beneficial because the nodes and blockchain does not need to carry all these information.
  2. How is the account model not as great as the UTXO model for privacy?
    People can see the transaction easily because when a transaction happens the balance change, while in UTXO model the wallet will continuously calculate how much are spendable from all the multiple inputs and then send the relevant amount to the receiver while sending the rest of the BTC as change to ourselves.
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#1552

  1. Lesser space occupied makes transactions simpler and faster to perform.

  2. Account model is not as private as using UTXOs because there’s no way for you to send money back to yourself or have a change through output.

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#1553
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It doesn’t have to collect UTXOs and add them up to know your balance, it just updates balances when tx occurs.
  2. How is the account model not as great as the UTXO model for privacy?
    you cannot send tx to multiple recipients at the same time
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#1554
  1. More transactions can be stores in less amount of memory, this increase the scalability of the blocchain
  2. The account model is much simpler, it goes from a to b. UTXO can be spent to multiple accounts making it harder to track and know which address is the same as the senders
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#1555

Hello

  1. Account model updates the transactions when it happens, without tracking the inputs and outputs like in UTXO’s.

  2. In UTXO, we can send money to others as well as ourselves in a single transaction but in the account model we cannot

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#1556

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?

It benefits the network because it transactions are smaller and fees are smaller.

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

Unlike Bitcoin, Ethereum does not have a “change” wallet where unspent funds are sent to. The Bitcoin UTXO model can lead to several transaction outputs making it difficult for a malicious actor to trace funds. It is far easier to track where funds are going in Ethereum than Bitcoin.

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#1557
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • It makes the blockchain size much lighter, which benefits nodes and the overall network scalability and latency, In fact, it allows nodes to create blocks with much higher amounts of transactions.
  1. How is the account model not as great as the UTXO model for privacy?
  • It’s very easy to track transaction, senders and receivers on Ethereum Account model. In UTXO however, multiple inputs/outputs in UTXO makes it very hard to know this information.
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#1558

  1. More transactions per blockSize, Potentially faster transactions due to being able to propagate quicker.

  2. The UTXO modl allows you to create multiple outputs of which some can go back to wallets the sender owns. It is therefore harder to tell which transaction went out to a recipient.

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#1559 
The account model doesn’t require much space as the UTXO model, why is that a benefit?
How is the account model not as great as the UTXO model for privacy?

1- Because saves space on blockchain
2-because the transactions are more transparent, you can’t send funds to your self in the same transaction.

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#1560

  1. Account model that Etherium uses doesn’t require as much space as UTXO and that makes for faster & more efficient transactions.

  2. The account model offers less privacy than UTXO, because unlike UTXO it’s obvious who the currency was sent to and can only send one at a time. UTXO the receiver can be pretty anonymous and there can be more than 1 recipient.

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#1561

  1. Theoretically a more efficient system as each block can hold more transactions and other data (e.g. for other tokens) per block (when compared to something like Bitcoin).

  2. Less privacy in regards to the traceability of an address that pays another address (direct 1:1 type of payment). In Bitcoin for example, you can send 1 transaction/payment out to multi recipients where some of those or all or whatever are your own wallets (probably newly generated, etc.).

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#1562

Creates more space on the ethereum blockchain, scalability is an issue, so anything that remedies this is good.

UTXOs are all over the place and not as easily traceable.

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#1563

It’s a benefit to using less space because it allows for more transactions to be stored.

The account model is not as private as the UTXO because the UTXO generates a random key that makes it indiscernible who received that transaction whereas the transparency of the account model shows where it came from but adds to fungibility in this way.

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#1564

  1. It saves more space in the blockchain for other things such as the smart contracts.

  2. With the account model you can not send money to multiple addresses at the same timple

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