Homework on UTXO vs Account Model

Ethereum 101
#1565

  1. The advantage of having an account model that doesn’t require as much space as the UTXO model is that they save space, as stated, so more transactions can occur simultaneously. Also storage and processing efficiency increase with this model.

  2. The account model is not as great as the UTXO model concerning privacy because the model is fungible meaning that it is easier to follow as there is a balance system. The UTXO model is more private as the transactions are harder to follow as you don’t know exactly who is receiving or sending. There are also more things happening in the UTXO block, so that makes it harder also.

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#1566
  1. You can fit more transactions in the same space.
  2. The UTXO model can be a little more opaque in terms of the flow of tokens as one transaction can generate multiple UTXOs, whereas the account model is more transparent because of its simplicity.
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#1567

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Makes transactions smaller it is a benefit because it saves space on the blockchain nodes which should make the transactions cheaper.

  2. How is the account model not as great as the UTXO model for privacy?
    All account balances and transactions are public with your account address.

-edit 1-

  1. You don’t know with Account models where the coins came from if it came from a hack or a shady past. You can also track where ETH is sent where BTC you can split transactions.
#1568

1.less space required .more transactions per block, increasing speed and reducing fees
2. Account model only allows tx sent to one address so you can see both to who it was sent and how much, UTXO allows multiple recipients
including original source so amount sent to each recipient is not known

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#1569

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The account model not requiring to use as much space as the UTXO model because Ethereum can have more transactions on a block

  2. How is the account model not as great as the UTXO model for privacy?
    The account model is not as good as the UTXO model for privacy because for the account model you don’t have multiple inputs and multiple outputs. This means that you can not send a bit of ETH to someone and send some back to yourself. While in the UTXO model you can and there is no way of tracking which output you are sending to the recipient and which you are sending back to yourself.

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#1570
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

it is less expensive for node operators cause not as much storage space is required, more transactions can fit into each block

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

you can track where ETH are sent, to what account address; in BTC transactions are split, and you can’t know for sure where they go

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#1571

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

UTXO model and Account model both are public blockchains, maybe you want to redesign your answer :nerd_face:

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

Carlos Z.

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#1572
  1. Faster transactions with higher contents, less fees, less conjestion.
  2. You don’t know if the coins you receive have had a shady past (i.e. stolen from hack) and you can’t hide who gets what transaction like UTXO model (i can send both transactions to myself or 1 to myself and another to someone else - impossible to tell from the outside - the opposite is with the account model).
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#1573

1.Takes less space; only updates;less private;more fungible
2. You cannot send money back to yourself

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#1574

Blocks can include more transactions because every transaction is smaller, which is much needed for the Eth network because of thousands of ERC-20 tokens, and smaller transactions mean also smaller fees.

In terms of privacy the UTXO-model is better because I can pay someone but can also send back to myself so from the outside there is no way to tell which output goes back to me and which output goes to the recipient. In the Account Model on the ETH network you can see exactly how much money you send and to which adress.

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#1575

  1. The ETH account model increases blocks storage and speed efficiency.

  2. Privacy needs currently to better on ETH because from outside of accounts, each one can see the moving amounts of money from accounts to other accounts addresses.
    The BTC UTXO model stays silent about account address and payees. It only traces back potential-to-be-spent amounts. If we pay one, several, or self remains invisible on BTC model.

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#1576

The main benefit would be the space saving as you won’t need to track every utxo.

The origin of every transaction can be tracked with utxo’s

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#1577

  1. the more you can save space, the more transactions will be recorded into the blockchain.

  2. UTXO model has a higher security model than Account Model because of the anonymity of the receiver and the sender. In account model, it is more traceable since it has only 1 account address where you send or receive ethereum

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#1578

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

It is a benefit because less space = less friction to propagate it through the network.
It makes ETH a bit more “fungible”. Since there is no way to track ETH all the way back to its origin like could be done with the UTXO model it makes all ether the same without distinction.

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

Because a ETH transaction has no inputs and outputs like the UTXO model, it means that a transaction always goes from “A to B”. This would mean that when a transaction has moved a certain amount of ETH, the full value of that transaction have to had moved to a different owner/wallet.

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#1579
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Because each node can hold more data if the data requires less space. More space is always a benefit as it allows for more room on each node.

  1. How is the account model not as great as the UTXO model for privacy?
    Because it makes each transaction super clear, while with BTC you can send BTC to yourself and someone else in the same transaction, which makes it difficult to track what exactly happened.
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#1580

sorry :sweat_smile:
I didn’t understand the question.
So the UTXO is better for privacy because there are no outputs that can be sent back to your account. You can’t hide your spending, you have one input and one output in every single transaction.

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#1581

smaller blocks

you can not hide your spending

#1582
  1. The account model doesn’t require as much space as the UTXO model, why is that a benefit?

A. Transfer and storage of data is much more cost efficient. Many inputs and outputs (UTXO model) create weight on the blockchain which is expensive to store. The account model pools network power and keeps fees low by continuously updating data instead of tracking every input and output.

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

A. The UTXO model allows each transaction to be traced back to it’s origin and multiple addresses can anonymously be used in a single transaction, whereas the account model allows one transaction with one address at a time and these updates are shown publicly.

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#1583

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

Neither in UTXO model, maybe you want to redesign your question.

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

Carlos Z.

#1584

1- Using less space makes transactions faster and cheaper
2- You cannot hide who is getting the money by sending part to yourself

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