Homework on UTXO vs Account Model

Ethereum 101
#1805
  1. It would make for smaller, easier transferable blocks and faster processing
  2. The account model is not as good for privacy as you can track the address of who has been paid, whereas the UTXO model can pay out multiple accounts one of which can be your own.
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#1806
Answer

The benefit of account transactions not taking as much space as UTXO’s is that less block space is taken up which means less congestion in the Ethereum network for Transactions. This is important for Ethereum as Transactions are not the only information stored in the blockchain. Besides Transactions, the code for Smart Contracts and the state of all Smart Contracts are also included in the Ethereum blockchain.

Answer

The UTXO model is pseudonymous meaning that when you spend a UTXO if there is a remaining balance it is spent as well. This remaining balance can be spent to a new address different from but still belonging to the sender. This makes it difficult for outside observers to determine who owns which UTXO’s. The account model only adjusts account balances based on spending and receiving and is easily trackable by outside observers.

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#1807

  1. this is a benefit because you can fit more transactions in one block thus making the process faster and it safes space.

  2. . With Ethereum each transaction is an A-to-B transaction for an exact amount between two wallets and both are debited/credited for that transaction. It is therefore easier to audit/trace what happenes whereas in Blockchain UTXO’s are basically split between a transaction, the transaction fee and the change wich is returned to the sender.

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#1808

1- because in account model you only have 1 input and one output, while in utxos you can have many inputs and many outputs

2- in utxo you can be sending money to different persons ( yourself between them), while in account model there is only 1 recipient

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#1809

1.- The account model does not require much space as the UTXO because there is no need to use various inputs to make a large transaction for example. I believe that all the memory used to track inputs and outputs is saved. The benefit of this is that you can have more transactions for the same memory space.

2.- The account model has the drawback of privacy because you cannot send outputs to yourself like you do in Bitcoin. Accounts balances per address are “clear-cut”.

#1810
  1. Since there are no UTXO’s to take up space, each block has more space available making faster processing speed and smaller block size
  2. sending and receiving ethereum is traceable and the transactions can only go from one account into another and in one chunk/balance, so you wouldn’t be able to send to someone else and yourself at the same time, you’re able to see who sent and received and how much and when.
#1811
  1. you can more transaction in a block smaller is the size of a transaction more you can add it to a block.
  2. It is easier to track because you do a transaction acount to acount that is differents of UTXO where you can different outputs
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#1812

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Benefit of account model is that the messages passed in the network protocol are smaller and requires less amount of network transmission.

  2. How is the account model not as great as the UTXO model for privacy?
    The account model has less privacy because everyone can see the amount you are transacting and which address you are sending it to.

Contrary to UTXO, you can send bitcoin to multiple addresses in 1 transaction, thus hiding exactly where the money ends up in the final output.

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#1813

1/ This is because the programming or the space it requires is different from bitcoin, it is smaller because it has neither inputs nor outputs, that is, less information is required to perform a tx

2/ because there will always be the record of who sent you money or to whom you sent and does not have the possibility as in BTC to “mislead”, since you can not send money to yourself

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#1814
  1. Less space, more transactions, more effective, more adopters.
  2. You cannot transfer money to yourself, so it’s possible to see how much money you have transfer.
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#1815
  1. As we have seen with bitcoin, it ran into the problem of blocksizes being too full by 2017. So it is beneficial for the account model to not require as much space because it solves that scalability issue that bitcoin faced, early on.
  2. The account model is not as great as UTXO for privacy because on ethereum you can see where the coins are going and you cannot send it back to yourself in a single transaction. While on the UTXO model, it is very difficult to see where the bitcoin is going.
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#1816

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefit because transactions are faster and more efficient.

  2. How is the account model not as great as the UTXO model for privacy?
    You can’t send a transaction to multiple addresses. This means you can see exactly how much money you to which address sent.

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#1817

  1. TXs are faster and can include more tx’s

  2. UTXO allows you to see each coin that represents each tx as the account model does not

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#1818

  1. This is a benefit because it can allow the tx to be sent in a shorter amount of time and more txs in total as well.

  2. With the account model people can see the exact address which has sent you money and vice versa those who you send money.

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#1819

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?

Taking up less space means that more transactions can be added into a block, and this speeds up the rate at which transactions are confirmed on the blockchain.

The faster processing of transactions, coupled with a lighter load on the computing resources involved makes Ethereum more attractive for users, developers, and investors.

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

With the UTXO model, funds are sent back to the sender as ‘loose change’ when a UTXO is partially spent in a transaction.

These funds can return via a different public address owned by the sender, and therefore, it is difficult to know whether those funds have gone to the sender or the recipient of the transaction from an observers’ perspective when looking at the transactions on the blockchain.

In contrast, there is no way to send funds back to yourself with the account model, so the exact amounts that you are sending and receiving in transactions is more apparent when your address is viewed with a block explorer.

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#1820

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Less data, faster transaction, more effective usage of the network.

  2. How is the account model not as great as the UTXO model for privacy?
    In the UTXO model transactions are encapsulated, you can send some to a friend and back some to yourself, in one transaction. In the account model, every transaction has only one recipient, and it can be tracked down when you sent some money, how much, to which address. But as you can track down every BTC back to the miner in the UTXO model, the account model cannot be called much worse solution.

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#1821
  1. Because more transactions fit into a block, meaning more transactions can run on the Ethereum blockchain.
  2. The UTXO model combines transactions so one transaction can send funds to multiple addresses at the same time, including ones own address. In Ethereum you can only send from one address to another address making it more transparent but also less private.
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#1822
  1. The account model does not function on input and output of transactions and transaction history, it is this inout output model of all UTXOs that takes more space in code and TXT.
  2. In the UTXO model it is possible to send Bitcoin to another person address and also some back to yourself privately. In the account model this is not possible.
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#1823
  1. more efficient
  2. UTXO obscures how much money was paid to whom.
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#1824
  1. is benefit cause takes less space than UTXO by reducing the size of the block the tx is faster
  2. UTXO model is better for privacy and the account model is simpler cause you are able to see how much you send and how much is your balance after a transaction is made.
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