Homework on UTXO vs Account Model

Ethereum 101
#1665

1.Blocks can include more transaction, increase speed and solves scalability issues.
2. As we can see exactly what amount transferred and where in ETH network as the address always remain same for Etherreum and its Tokens, while in UTXO model the Unspend amount returns back to user to a different address unable to trace or confuse the person interfering with users privacy.

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#1666
  1. Those unspent transactions are logged on the block chain and that requires more computing and storage of information; ie the power can be utilized in other ways.
  2. The amount that is transferred always has 1 destination as opposed to bitcoin where a transaction can be sent to multiple addresses so it is much easier to follow and trace every transaction on the Eth network.
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#1667
  1. Faster and more efficient.
  2. From the outside you cannot tell exactly where the UTXOs are going. With the account model, it is all viewable on the ethereum blockchain.
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#1668

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because it just transfers the amount of ETH from an account to another without needing to specify via UTXO where this funds are coming from. So it is much simpler.

  2. How is the account model not as great as the UTXO model for privacy?
    Because you can’t send money back to yourself, like change from a transaction, or the whole transfer just returning to you. With ETH you can do this by sending to another account under your control.

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#1669

[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?
    This leads to a more efficient memory usage. Storing a single account balance saves memory compared to storing several UTXOs that comprise a user’s total balance. Transactions in the account model are also smaller in size because they only specify the sender, receiver, the transfer amount, and a single digital signature. Additionally, just by doing away with change outputs, a lot of data can be saved in the account model. This makes it easier for nodes to update faster since less data is needed to get them in sync. Also, with less data and space, it is easy to write codes.

  2. How is the account model not as great as the UTXO model for privacy?
    In the UTXO model, it is difficult for people to track the movement of funds because I could do a transaction that sends money back to myself. For example, my transaction may have two inputs, all of which could go back to me or all of which could go to another recipient or to two recipients. This provides more privacy because it is difficult for people to tell which transactions went to which recipients. In the account model, balances are only updated when funds change hands-one account is increased while the other is decreased. In this way, people can see exactly who is sending you money and where you are sending money. So there is actually less privacy in the account model.

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#1670

Loved your answers. It’s easy to understand. Great work. :clap:

Carlos Z.

#1671

it is a benefit because it requires less energy and blocks can include more transactions

UTXO’s are more difficult to follow because there is always change coming back to another wallet address which makes it difficult to follow

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#1672
  1. Transactions take less space now, making the fees cheaper, and now more transactions can be processed faster.
  2. Because the UTXO model sends your change back, it’s hard to trace a transaction, whereas an account model is simple and thus making it easy to trace.
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#1673
  1. Increased storage with more transactions per block minded.
  2. The account model is public code & balances. UTXO’s don’t allow hiding behind dummy transactions.
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#1674

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?

Blocks can add more transactions

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

With the UTXO model you can send the money to several outputs and not tell which receiver gets what. Instead, with the account model a transaction goes from person A to person B.

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#1675
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • Each block will grow much slower due to the nature of the TX’s requiring less space, this will result in lower fees.
  1. How is the account model not as great as the UTXO model for privacy?
  • UTXO model has more privacy as the Acount model allows traceability when sending to the same account. UTXO model sends any unspent UTXO’s back to the same wallet or another wallet governed by the user whereas ETH only allows a specific amount from A to B accounts.
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#1676

1- This design provides greater flexibility to the blockchain since transactions can have different effects when they are executed, since they depend on the state at the time they take place.
Allows more flexible transactions :Transactions depend on the existing state and can have different effects on itself.
Save storage space: Each transaction in this model only has a reference and a signature when producing an output, contrary to what happens in the UTXO design.

2- This model encourages users to reuse the same address, which reduces the level of privacy, since the same account can connect to a single owner.

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#1677

  1. Because you’re saving space it means that eacht transaction requires less space in a block. Meaning more transactions per block leading to cheaper transaction fees (well until DEFI came along :sweat_smile:).

  2. You can see which address sent you the Ethereum or tokens. There are no multiple utxo’s on 1 ‘Ether’ but there are on 1 ‘BTC’. With Bitcoin it is harder to track exactly which address the BTC came from because you can pay to multople addresses.

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#1678

Thank you Carlos. Always happy to get feedback for my work.

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#1679

1 - makes transactions faster and doesn’t take up much space on the blockchain
2 because you can see the address of who is being paid and in bitcoin you can send it to several addresses

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#1680

Cause you are able to save more TX por block, making the network lighter and faster, I would say it is cheaper, but reality has not shown this :sweat_smile:

It is cause in UTXO’s model, one transaction can have a lot of inputs and a lot of outputs, hindering to trace back where the founds came from and where they are going. It is simpler in the account model, the founds substracted in one acount are added in the other account, and everyone can see the amount, the sender acount and de receiber account.

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#1681
  1. It saves space and time in the tx.
  2. You can’t track every coin.
#1682

lol, true :rofl:

Carlos Z.

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#1683

Less space required means less required resources.
The trade off in privacy comes in the fact that any ether transaction is easily traceable because of the account balances.

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#1684

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?
  • Txs are smaller, faster/easier to propagate to nodes.
  1. How is the account model not as great as the UTXO model for privacy?
  • In Ethereum the balance is updated. You send exact change to 1 target address.
  • In Bitcoin you send one or more amount(s) to one or more recipients and your ‘balance’ is send to a new UTXO belonging to you. The moving of Bitcoin funds from UTXO to UTXO during each transfer makes Bitcoin more private as it doesn’t reveal which UTXO belongs to the sender.
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