Man you gotta love these courses!
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Hello sir, the UTXO model makes harder to track the provenance of the funds.
There are still procedures to keep track of the funds provenance of a wallet (since the blockchain is public, there will always be a way to track any wallet funds).
The Account Model is quite easy to track the provenance of a wallet/account, since you can track āfrom, to, quantity, hash, timeā on the blockchain in a way more simple than UTXO.
Even the fact of sending funds back to yourself, means an output with a input, so you can send 1 BTC (1 input) divided for 8 persons, 0.1 BTC per person = 0.8 BTC for persons (8 outputs). The rest 0.2 BTC will be automatically sent to another address that you control from your private keys, so it counts has another output. Inputs must be spent completely, there is no way to spent like 80% of an input (0.8 BTC), this is why if you spend that 80% to persons, the 20% goes back to yourself in another address (create a new input with the rest of the funds 0.2 BTC).
From the human perspective, is quite hard to follow the track of 1 input with 9 outputs. This is when some kind of privacy comes from, since 1/9 output is yourself and 8/9 are the persons. How can you track from the outside which belongs to who?
The Account Model is quite easy to track the provenance of a wallet/account, since you can track āfrom, to, quantity, hash, timeā on the blockchain in a way more simple than UTXO.
Basically you example said that C will receive funds from A and B, then C will sent funds to D and E right? In this case, when E or D receive the funds, they can be able to see the transaction and goes back to C historical transaction, then you can analyze the C wallet and check that it receive funds from A and B. Meaning, you can check the provenance of the funds in a very easy way than UTXO model (meaning, less privacy).
Hope this gives you a clear view of the subject, keep learning! :
If you have any doubt, please let us know so we can help you!
Carlos Z.
hello - just dropping by to say hiā¦ super excited in learning about Ethereum!
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Hello kath7lee!
I am also starting in learning about Ethereum today. Cheers 
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cool! hello classmate 
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I have a question regarding the EVM. If all nodes execute all smart contracts, then shouldnt there be a severe bottleneck pretty soon? Lets say ethereum get world adoption and there are millions of smart contracts, how would each node execute every smart contract? Itās still a physical machine that has to process everything in the end.
Maybe this is part of ethereums scaling problems and the high gas fees we are experiencing right now?
How can be a bottleneck on a decentralize computer network (meaning: computation power), every new node translate to more compute power for the entire network. A bottleneck could happen on ethereum like it was on Bitcoin years ago, too many transactions than what it can actually process every 10 minutes. So from my point of view, the only way to get a bottleneck on Ethereum nodes is that there are more transactions waiting to be processed than what the actual network can handle.
Not every node execute all smart contracts, is based on location, for example you send a transaction from your house, you are going to connect to the closest nodes you have, so those nodes will process verify and process your transaction, while there are other nodes in the network that are really far away from you that will not even notice your transaction, they will add it once it has been processed (validated) by a bunch of nodes closer to you.
High fees are part of the scaling issue at this moment, we are not ready for mass adoption if you have to pay like 10$ for a transaction amount of for example 100$ (10% of the total tx is too much for a new monetary system). But this should be fixed in Ethereum 2.0 along with other actual issues.
Hope this gives you a clear picture of the subject.
If you have any more questions, please let us know so we can help you!
Carlos Z.
Day 1 for me on Ethereum-class.
lets goo!!!
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Hi team, hope everyone is doing great, first day of ethereum class for me, highly motivated, letās dive deep
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Hello @J0N4, glad to have you here hope you enjoy this amazing course and you learn a lot from it!
If you have any more questions, please let us know so we can help you!
Carlos Z.
Thanks Carlos
Still confused about account model and UTXO. Correct me if im wrong. To clarify, in the account model, Eth is easier to trace because a single transaction only includes one output? Therefore its much easier to trace a single eth from its origin? With UTXO, a single transaction can include not just one output, but multiple outputs, therefore making it difficult to trace a satoshi/btc from its origin?
correct.
more easier than UTXO model yes.
Yes, 1 input can contain multiple outputs.
If you have any more questions, please let us know so we can help you!
Carlos Z.
Okay thank you for confirming.
I donāt understand what Ivan means when he says ETH is more fungible, or that 1 BTC could potentially not equal 1 BTC. Could someone explain that to me?
Iācurious, lets begin!
Hello @jaycho03, ETH is more fungible than BTC because you have to take into consideration the amount of ālost BTCā, meaning those BTC that will remain always in a wallet, and no one will never use them because the owner lost his private key long time ago, fixed total supply of 21 millions, in that case, 1 BTC = [total supply - ālost btcā] /.
While Ethereum does not have a fixed total supply yet, it could be more fungible than btc.
If you have any more questions, please let us know so we can help you!
Carlos Z.
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That really helps thanks a lot!
So ,you set up metamask on your browser, then you bring up crypto you would like to buy or do you go to de-fi exchange or what?
So far , I have been readying for 3 days and I and made a lot discoveries that
are very interesting , but need multi questions to answer so that I can put this all together.
I have read of several ways to make transactions with Ethereum ,using metamask , and Infura.
What am I missing?