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The account model has overall smaller transaction size, this due to the fact that the account model is not tracking all prior inputs and outputs of a transaction like the UTXO model uses. All of those inputs and outputs in the UTXO model create storage capacity issues on the blockchain.
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In the UTXO model each transaction can be traced back to it’s origin though multiple addresses can be used in a single transaction. This can make UTXO transactions harder to track as the multiple addresses could be for the receiver of the transaction or the receiver and the sender. In the account model one transaction is completed with one address at a time and these are easily viewed publicly on the blockchain.
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The account model doesn’t require much space as the UTXO model, why is that a benefit?
It allows for more transactions to be mined in a single block and making processes be faster for each transaction. This then in turn improves the scalability of the blockchain. -
How is the account model not as great as the UTXO model for privacy?
In the account model, you can see the account address and know exactly how much is in each address. The input and output is also from one account to another, and that makes it impossible to hide your identity and what you have in your wallet, unless you keep making new wallet addresses for every new transaction.
In the UTXO model, there are multiple unspent transactions generating multiple outputs, making it hard for people to track which address is the sender’s, and hence a greater level of privacy is maintained.
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- less space is always a benefit on a blockchain, as more transactions can fit into a block and that also brings faster transactions
- in account model on Etherium it is not possible to send money to multiple addresses (one of which can be ours) and it is easier to track the transactions
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space saving is a benefit. It allows for more transactions in the least amount of space.
On one etherium transaction you can only send your coin to one receiver. On a UTXO model on the same transaction you can send your coin an additional receiver and to yourself which will be harder to track.
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- It requires less space on the blockchain. This results in faster transactions and more transaction in one block.
- You can only send money to one receiver. While in the UTXO model transactions are made from multiple UTXOs and are devided into multiple UTXOs, including UTXOs back to the sender. It is just harder to track UTXOs instead of accounts.
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Thank you for specifying these points.
- Space saving is always a benefit, since it makes it possible to store more transactions in less space.
- Because on an account model, the sender sends the funds directly to the recipient. If a transaction has 3 inputs:
**1. More transactions can be processed using less space in one block.
**2. The account model is not as great as the UTXO model for privacy because there are no outputs. Each transaction can be seen from the outside, how much was sent and to whom.
- It allows faster transactions / execution of the smart contracts in the Ethereum network.
- The UTXO model allow sending the ‘change’ to your own wallet so it makes it harder to track which of the inputs are used as the ‘real’ output to the receiver.
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- The account model doesn’t require much space as the UTXO model, why is that a benefit?
More transactions can fit into the blocks. This is vital since there are many ethereum tokens that are part of the ETH blockchain.
- How is the account model not as great as the UTXO model for privacy?
The Ethereum destinations are the ones stated and that’s it. With Bitcoin the whole UTXO goes to a destination address and part of it goes back. That makes it difficult to know which went where.
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Q1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
It enables more transactions to be stored on the ethereum blockchain and improves blockchain scalability.
Q2. How is the account model not as great as the UTXO model for privacy?
In the account model the transaction source and destination is one and can be easily traced. In UTXO model there can be multiple inputs and multiple outputs for one transaction making it difficult for tracking and thus more private.
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- Efficency is higher , more tx’s block storage, faster
2.Fungible coins, You can track everything through keeping your wallet address as yours and not changing it like Bitcoins UTXO model where you can send it to yourself back and it shows off an other output adress, where it is basicaly impossible to know what goes to who back.
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transactions details can be seen publicly in both blockchains, the difference is on how easy is from one to the other the way you see the transaction details, UTXO Model use inputs and outputs, can send funds to multiple addresses in the same transaction. While the Account model you can just send funds from point A to B on each transaction (you cant send funds to multiple addresses).
If you have any more questions, please let us know so we can help you! 
Carlos Z.
- That makes scalability more efficient because it takes less memory to send a transaction. As a result we get cheaper and faster transactions than a blockchain that have UTXO model such as bitcoin.
- On one ethereum transaction you can only send your coin to one recipient. On a UTXO model on the same transaction you can send your coin to one other recipient and to yourself at the same time which makes it harder to track it.
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- The account model doesn’t require much space as the UTXO model, why is that a benefit? UTXO will always need to be collected in order to identify even something as easy as a balance. Whereas account model would only require a single instruction therefore saving space.
- How is the account model not as great as the UTXO model for privacy? Due to single account/address it would be easier to identify the connection between ETH coin and owner, whereas utxo cannot be traced to a specific owner only to source.
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- Using less space means faster and easier block processing
- Everyone can see where you sent your money
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- Because it just updates your address account, there is no need to store UTXo
- Because to some degree you always know what is the state of your account, while in bitcoin you could send money back to you in a single transaction and it would be harder to trace.
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1.- Benefits are: take up less space in the blocks, TXs are faster processing. The benefits of ETH are based on the simplicity of its TX. These benefits affect the privacy of the TX and determine that ETH is fungible and BTC is non-fungible.
2.- The simplicity of ETH model takes out privacy from its system. UTXOs model hide by outputs to whom and how much we are sending.
- It saves Blockspace
- With UTXO´s in a transaction, some of the UTXO’s get redirected to oneself, making it harder to track the destination of transactions
2. How is the account model not as great as the UTXO model for privacy?
Quite close, but the UTXO model does not “hide” the amounts, it just makes it harder to track, there are still procedures to keep track of the funds provenance of a wallet (since the blockchain is public, there will always be a way to track any wallet funds). The Account Model is quite easy to track the provenance of a wallet/account, since you can track “from, to, quantity, hash, time” on the blockchain in a way more simple than UTXO.
Even the fact of sending funds back to yourself, means an output with a input, so you can send 1 BTC (1 input) divided for 8 persons, 0.1 BTC per person = 0.8 BTC for persons (8 outputs). The rest 0.2 BTC will be automatically sent to another address that you control from your private keys, so it counts has another output. Inputs must be spent completely, there is no way to spent like 80% of an input (0.8 BTC), this is why if you spend that 80% to persons, the 20% goes back to yourself in another address (create a new input with the rest of the funds 0.2 BTC).
From the human perspective, is quite hard to follow the track of 1 input with 9 outputs. This is when some kind of privacy comes from, since 1/9 output is yourself and 8/9 are the persons. How can you track from the outside which belongs to who?
The Account Model is quite easy to track the provenance of a wallet/account, since you can track “from, to, quantity, hash, time” on the blockchain in a way more simple than UTXO.
Hope this gives you a clear view of the subject, keep learning! :
If you have any doubt, please let us know so we can help you!
Carlos Z.
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