Homework on UTXO vs Account Model

Ethereum 101
#1645

  1. The Account Model decongests the Network So that The Network only has to show Balance of payments not not full transaction message, block header etc. thereby reducing block size ( a BTC block has 4MB data whereas an ETH block only contains 50-70 kb data)

  2. Since the UTXO Model is based on inputs and outputs you can send funds to your multiple addresses including yours in one transaction thereby ensuing privacy, whereas in the account model you can only send to One address in one transaction, which is easily available info on etherscan.io and hence not good for privacy.

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#1646
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The smaller the transaction is, the more fit into a block.
  2. How is the account model not as great as the UTXO model for privacy?
    With the UTXO model you can send values to different addresses in one transaction and nobody can distinguish which value goes to which address. It is possible that there are addresses involved that controlled by yourself.
    With the account model it doesn’t work like that. You can see exactly which value goes to which address.
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#1647

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Less space required means more transactions can be packed into the same size block in the UTXO model.

2. How is the account model not as great as the UTXO model for privacy?
Because there’s no notion of UTXO in account model there is no possibility for multiple outputs meaning that every transaction is simply a transfer from one account to another. This makes it easier to determine who is sending funds to who.
At the same time it’s easier in the UTXO model to track the origin of the coin as the coins in such model are less fungible.

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#1648

1. Its a benefit because it takes less space, therefore faster transactions

2. in utxo model, sending to self as a part of same transaction can be employed to cover tracks VS in account model the transaction can be traced back to sender so provides less privacy.

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#1649

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The Account Model changes the balance of Accounts and not need to calculate all the UTXO’s. So is less space on the blockchain and faster.

  2. How is the account model not as great as the UTXO model for privacy?
    As it only updates balances you cannot track back through the blockchain history. This also leads to less security and is less private.

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#1650
  1. Every transaction is smaller, smaller fees come from that and faster transactions speed
  2. Because UTXO has a code available to public and balances of each user are public
#1651
  1. Account model does not save each coin which makes the upending process faster.
    2.Being based on account balances and not the individual utxo makes anonymity impossible as your account balance is always public
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#1652

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

Both codes of bitcoin (UTXO model) and ethereum (account model) are public, also their blockchain, maybe you want to redesign your question. :nerd_face:

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

Carlos Z

#1653
  1. because saying “1 ETH goes from A to B” is easier/smaller than having a lot of UTXOs and outputs in the same block.
  2. Because it is more fungible. When you receive 1 ETH in your “wallet” all is the same, while in BTC you each BTC can be traced back to it’s roots. In BTC you can also send money to you at the time you send money to somebody else and the network cannot know which is you, or if there somebody else. in ETH they know the address.
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#1654

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It can reduce the size of bytes used.

  2. How is the account model not as great as the UTXO model for privacy?
    On the point that you cannot trace the transactions.

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#1655

  1. The reason Ethereum’s account model doesn’t require as much space as the BTC’s UXTO model is because there is only one input and one outputs and two balances to update and store per transaction, while Bitcoins UXTO model has numerous inputs, outputs, unspent UXTO’s to return in every transaction it stores. The account model just keeps track of the transaction that is taking place and the balance of each account which requires significantly less space and time per tx allowing for much better scalability, ERC20 coin programs and important features such as Smart Contracts.

  2. In regards to privacy; however, the account model shows the actual transaction both parties made and updates the balances of both accounts in every transaction; but, does not have much traceability per coin whereas the UTXO model shows numerous inputs and outputs, unspent tx or change being sent back making each transaction a much more private, complicated and less easily to track and understand whats going on in each transaction. That said, enough digging or a smart program could simplify the ability to trace back every UXTO tx quite easily.

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#1656

[quote=“filip, post:1, topic:8445, full:true”]
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 simply update balance of the beneficiary and deduct amount from the initiator while in UTXO model transection count the total UTXO and then initiate the transection and send a part to beneficiary and rest to initiator which use more size and coding to execute .
  1. How is the account model not as great as the UTXO model for privacy?
    -in UTXo model when you initiate a transection you send some amount to beneficiary and rest to yourself on a newly generated bitcoin address which belong to your private key thus its nearly impossible to trace which one is which , and in account model eth your address doesn’t change it stay the same and when you send some amount you only send that amount to the beneficiary and nothing to yourself
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#1657

The account model takes less space than UTXOs.

The account model is public and only updates where as the UTXO is more private and each transaction can be tracked.

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#1658
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

The Ethereum account model contains an actual balance that updates wallet accounts. This system of storing ETH requires less data to transact. These transactions take less space than the UTXO model because the UTXO model needs to gather data from previous blocks, collecting funds being sent, and returning the remaining balance to your wallet.

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

The UTXO model is more difficult to decipher where funds are moving as the transaction can be split to multiple addresses.

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#1659
  1. It’s a benefit becuase you can store more transactions.
  2. The account model is easily traceable as the UTXO provides more anonimity.
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#1660
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?

Transactions are taking less space as there are no outputs like in bitcoin, its just account A -1, account B +1. Its more fungable, you cant distinguish one ETH coin from another ETH coin, sa you only have tracking of balance. You cant see from beginning from where this 1 ETH is coming from. On bitcoin you can distinguish that 1 bitcoin could be different from other 1 bitcoin.

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

Because looking at ETH transactions you can see exactly how many coins you send and to which address, In bitcoin you see that some you have send to address X and some back to your self, and you cant tell of both of them was send to you or to somebody else address.

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#1661

  1. because account model is based on changing balance on the account and blockchain and you can do transaction with simplified code then utxos model

  2. because in utxo model you can privacy your transaction putting different output and send back to you’re wallet bitcoins and anyone won’t be able to know where you’re transaction out has gone. in accounting model there’s no way of do this because is just shifting balance in the network and you can always see where someone is sending or receiving eth

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#1662

1.) The account model requires less space which is a benefit because this will lead to the block size being smaller. This makes transactions faster.

2.) The account model is not as good for privacy because you can see how much was spent and see the address it was sent to. In the UTXO model you can send to multiple accounts including your self.

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#1663
  1. Taking up less space provides for faster tx times and allows for more tx’s.
  2. The account model shows where the tx goes as opposed to UTXO model where you can hide this through having multiple outputs to send to thus covering tracks.
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#1664

  1. Because it means less expenses for miners and also lower requirements to become one, which also improves the decentralization (more nodes - less centralization).

  2. Transaction data includes only 1 sender and 1 receiver, unlike UTXOs where you have multiple inputs and outputs.

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