Homework on UTXO vs Account Model

Ethereum 101
#1765

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    the account model reduces the size of transactions, more transactions can be stored in one block, more efficient

  • How is the account model not as great as the UTXO model for privacy?
    without UTXO is not possible to trace the origin of each coin, the account model just updates balances of ETH

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#1766

The account model doesn’t require much space as the UTXO model, why is that a benefit?
A:Smaller blocksize means faster prozessing times
How is the account model not as great as the UTXO model for privacy?
UTXO sends funds through different adresses and obscures the owners address

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#1767
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Because it’s easier to do transactions just by moving from point A to B using balance instead of calculate all UTXOs to do transactions on Bitcoin.

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

With Bitcoin UTXO model, we can send money to someone and send back to ourselves in one single transaction without anyone knowing which one goes where.

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#1768

  1. Because the transaction on Ethereum has no UTXO.

  2. The transaction moves a balance from one account to another account and that is easily tracked. You cannot track the transactions to the level of coins

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#1769
  1. The account model doesn’t require as much space as the UTXO model because the UTXO models can use multiple inputs and outputs working together to complete a transaction. By reducing the size of inputs and outputs the amount of data being put onto the block chain reduces leading to more efficiency relative to if there were UTXOs. With better efficiency, comes fast transactions, more transactions, and less fees.
  2. By moving away from UTXOs, this comes at a cost of less privacy. UTXOs can use multiple inputs and outputs to complete a transaction with the users being on both the inputs and outputs. Since different public keys from the same user will be displayed in the inputs or outputs we cant differentiate who received or who retained which portion of the funds. This means it is harder to track how much specific funds, private keys hold. Through deduction and tracking, viewers can make educated guesses, but by removing a variable, the UTXO, it becomes less difficult.
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#1770
  1. Space is very important for blockchain. Since all the transactions need to propagate to every node, speed of propagation will depend on required space. In addition, full node might require less space to run.
    In additions, you can include more transactions to each block if they require less space.
  2. Ethereum has a wallet with account balance. And you can see everything coming in and out of that wallet. In bitcoin if UTXO has more money that required transaction then it will send the remainder, ‘Change’, to a change wallet. It makes it more difficult to verify since change account is a different UTXO from original address.
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#1771

1- The account model doesn’t require as much space as UTXO which reduces block size and allows faster transactions
2- In the account model there is a lack of privacy because the sender and recipient information is trackable

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#1772

  1. its a benefit because transactions speeds are faster and transaction can be tracked much easier as there are no UTXO’s to track.

  2. The account model is not as great as the UTXO model in privacy because of its fungibility.

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#1773
  1. Block chain node files grow slower, every transaction is smaller. Thus, lesser transaction fee needed.
  2. Account balance and codes are made public Cannot distinguish your intentions with dummy transactions
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#1774

  1. The account model doesn’t require as much space as the UTXO model, which is a benefit in that Blocks can store more transactions, which is more efficient and nodes can process transactions faster.

  2. All Ethereum transactions can be viewed on the blockchain publicly - you can see exactly where the funds came from and where they went - you can only send funds to one address at a time, whereas the UTXO allows you to send funds to multiple addresses in the same transaction, making it impossible to really distinguish what amount of the transaction went where, thus increasing privacy.

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#1775
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • We can put more transactions in the system
  1. How is the account model not as great as the UTXO model for privacy?
  • You can see exactly there is a transaction between person A to B and the exact amout sended.
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#1776

  1. Because it makes the transactions lighter and potentially faster to settle.

  2. The account model is easier to keep track because all transactions are available for anyone to see from the outside. On the UTXO model a sender may use a transaction to send funds for different addresses controlled by different recipients, including himself.

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#1777

1.) Increased storage efficiency, and more transactions per block.

2.) All transactions can be tracked because they are much simpler, there are no UTXOs.

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#1778

  1. The UTXO model records inputs and outputs and the balance remaining from the transaction. The ETH account model only records a simple transaction from one account to another account. This simplicity speeds up the blockchain, allowing more space for smart contracts, scalability, and the creation of other tokens to be built on ETH like ERC-20 tokens.

  2. The ETH account model is transparent on the blockchain on which each transaction can be traced to a specific account. In BTC’s UTXO mode the identity of each transaction, although traceable, is unknown. One transaction can have multiple outputs in which there is no record on the blockchain of the owner or recipient(s). This makes the UTXO model’s privacy much greater.

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#1779

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

It means that more transactions can be included in a block and therefore transactions can be processed quicker. It should in theory also reduce the size of the blockchain and make running a node more accessible as it will not require as much computing resources.

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

There’s much more transparency with the account model as the originating address, target address and transaction amount is public. With the UTXO model it is possible to combine multiple transfers in a single transaction including back to one of your own addresses which in effect disguises the transaction.

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#1780
  1. Scalability
  2. Easier to track one account to another in the account model
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#1781

  1. That means a transaction doesn’t take up as much space in a block. Going off what we learned about bitcoin and full blocks and an increasing mempool, I’m assuming using an account model instead would reduce transaction fees and confirmation times. This would also improve the scalability of Ethereum.

  2. With the account model anyone can see exactly which account is sending funds and which account is receiving funds vs. the UTXO model where you can create multiple outputs and obscure the real transaction within a bunch of outputs that come back to you.

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#1782

Homework

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

this will keep the blockchain small when you do not have to track every UTXO, this in turn will make it more easier on each node and on the network.

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

There is no change received for Ether, meaning when you send an ETH it will be sent to the direct address. a UTXO model is more difficult as the transaction can have many multiple outputs.

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#1783

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Small blocks, less network congestion, “cheaper” transactions, simpler model.

  2. How is the account model not as great as the UTXO model for privacy?
    Not as private/anonymous. Requires multiple transactions to send to multiple people.

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#1784

Less space required is beneficial as real people run the network. Less required space means it is open for more people. Also, you can probably fit more transactions on each block this way, making the entire network faster.

It is possible to track which accounts receive which amount of ETH. In UTXO it is not possible to tell which outputs go to the recipient and which go back to the sender.

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