Homework on UTXO vs Account Model

Ethereum 101
#1685

1.Th benefit of the account model not requiring as much space as the UTXO model is increased time for transaction speed.
2. ETHs Account summary model is transparent. You can see the exchange from one address to another. On the hand the UTXO model that bitcoin uses tracks every bit of circulation. lt has outputs being able to transact to two addresses at once increasing privacy. Making it hard to tell the story of the exchange.

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#1686

  1. The benefit of the account model not requiring much space as the UTXO model gives it the opportunity to have more transactions.

  2. The account model is not as great as the UTXO model for privacy because there is only a transfer of funds. It’s only one input and one output.

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#1687
  1. Smaller Block Size and faster transactions.
  2. With the UTXO model there are multiple outputs and it is hard to determine who received which output
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#1688

  1. Space is at a premium when you want each full node to store the entire blockchain, forever. Of course, Ethereum has smart contracts and state to store on top of transactions, but I assume those could be put outside the blockchain proper as Segwit did with digital signatures on Bitcoin.

  2. It’s clear that Bitcoin coin mixers have a lot to work with by pushing UTXOs all over the world, if necessary, to addresses that could have been created for that ONE transaction only. Ethereum has simply an account. Ethereum could go off-chain to an encrypted layer 2 and then back onto layer 1, but that would require fees and additional permissions. I expect such a solution on Ethereum soon if it doesn’t exist already.

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#1689

  1. Transactions fees are cheaper since they’re taking less space in each block.

  2. In the UTXO model you can have multiple inputs and outputs in one transaction, in the account model you send from one account to another so you can see the balance of each account.

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#1690
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • lower requirements for nodes regarding hardware --> less centralized
  1. How is the account model not as great as the UTXO model for privacy?
  • because in bitcoin you can have 2 or more outputs in 1 transaction and from outside you don’t know who controls those addresses. In account model you can see sender and receiver but you still don’t know if it’s the same person or not.
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#1691

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    This is a benefit because it reduces block size

  2. How is the account model not as great as the UTXO model for privacy?
    Because you do not need to send a combination of utxo’s and then recieve a utxo back as change in ETH like you do in bitcoin, in ETH you can send the exact amount, so you can not have multiple outputs (like BTC) which would make it more difficult to determine who received what funds. ETH just has the single transaction, move x amount of ETH from a to b , making it quite clear who recieved what funds.

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#1692

  1. One of the issues we ran into in the Blockchain 101 course was Block size, saving space in anyway will make Block’s able to carry more transaction and contract data than if it had a UTXO model.

  2. You can see the recipient and the sender in any given transaction. Making it unlikely to mask a transaction like you could with Bitcoin.

2.5 - I wanted to add something else to this answer. While The account model is more transparent on who is receiving and sending Ethereum, the fact that the account model is more Fungible than the UTXO model provides a different type of privacy functions that are beneficial for the account model and not the UTXO model. So both models have different pros and cons when it comes to privacy.

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#1693

  1. Saving space helps in scalability: maximizing the number of transactions per block, fastest broadcasting of transactions on the network, minimizing space disks constraints for the nodes.

  2. With the account model, by looking at one transaction on the explorer, anyone can clearly see the address of both involved parties (receiver and sender). There is no possibility, like in Bitcoin, to muddy the waters by using a specific change address, or by merging transactions to have numerous inputs and ouputs.

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#1694
  1. Blocks don’t fill as quickly with transaction data so less storage necessary which could mean greater network participation since it’s not as much hardware driven as the UTXO model.
  2. You can’t hide what is going on within the transaction as easily and cannot send funds to yourself (unless you have 2 accounts). Funds go from one account to another account without as much complexity and it is much easier to conceptualize since it aligns more with the traditional banking transaction paradigm.
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#1695
  1. because it takes less space
  2. Account balances are public
#1696

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

Not entirely true, Ethereum Nodes are way more resource demanding than Bitcoin nodes, maybe you want to redesign your answer.

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

Carlos Z.

#1697

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

Both blockchains are public, 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.

#1698
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    • The benefit of the account model not requiring as much space as the UTXO model is due to the simplicity of it. With the account model, you keep track, like a scoreboard, of how much funds each account has. With a UTXO model, each coin has a different transaction output, that has a certain amount, and that amount is pointed to the account that has the rights to spend it. UTXO also makes it so you can look at the history of each coin all the way to when it was mined.
  • How is the account model not as great as the UTXO model for privacy?
    • In an account model, you can tract the exact amount that was sent from one address to another. As with Bitcoin, you cannot really tell the amount that was sent.
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#1699

  1. Because then you can have more transactions per block, keeping confirmation times and fees down

  2. Because with UTXOs there is no way to distinguish which goes to a new person and which go back to you, or if any do. With the account model, it is either sent to you or not

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#1700
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

This is a benefit as the fees will be lower because the transaction size is smaller.

  1. How is the account model not as great as the UTXO model for privacy?
  • The account model allows anyone to view your balance in the blockchain whereas UTXO’s do not.
  • Bitcoin, using UTXO allowed the possibility of sending to multiple address in a single transactions with some address being dummy address controlled by you. Ethereum, using Account model doesn’t allow this and anyone can see exactly how much you sent to the recipient.
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#1701

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

  2. Blocks don’t fill as quickly with transaction data so less storage necessary which could mean greater network participation since it’s not as much hardware driven as the UTXO model.

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

  4. You can’t hide what is going on within the transaction as easily and cannot send funds to yourself (unless you have 2 accounts). Funds go from one account to another account without as much complexity and it is much easier to conceptualize since it aligns more with the traditional banking transaction paradigm.

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#1702

Homework on UTXO vs Account Model - Questions

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-it is a benefit, because the lower data exist in the network will make it quicker and more participant will particiâte.
2- in Bitcoin there is an input and output ,signature and all transactions are secured but in case of ethereum there is no input,output or signature and also it is impossible to figure out where the transaction came from and imposible to return any unspent TX to yourself

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#1703

  1. The account model doesn’t require much space as the UTXO model, and that is a benefit because it keeps the block sizes smaller(chain file size grows slower) and thus, in theory, should also transact faster.

  2. The account model is not as great as the UTXO model for privacy because anyone can see who sent who money and you cannot cover that by sending funds back to yourself.

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#1704
  1. It is beneficial because we can accommodate more transactions in the block. Also reduces the burden on the miners for upgrading storage capacities.
  2. People can track the money on the account model as balances are public. You cant hide your spends on Ethereum transactions.
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