Homework on UTXO vs Account Model

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  2. How is the account model not as great as the UTXO model for privacy?
  1. The account model saves more space for blocks than the UTXO model which leaves multiple UTXOs from one transaction.
  2. The account model is simple and transparent, easy to track transactions but with the UTXO model a transaction that leaves multiple UTXOs cannot tell who the money is transferred to.
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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?
    It is a storage problem – it means you store less code into the Eth blockchain. In the long run you don’t need to keep buying hard drive to meet the storage demand.
  2. How is the account model not as great as the UTXO model for privacy?
    Account model only do one transaction at a time, so outsiders can tell if you send your eth to someone else or to yourself, easier to track. UTXO can cluster transactions at once so outsiders cannot tell if how many people you are sending to (including your own wallet)
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  1. No UTXO means reduced size of block chain and simplified transaction record when compared to bitcoin.
  2. No UTXO also means that a history or an eth coin associated with any particular account cannot be established, this improves fungibility of the eth token.
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-Less space per transaction equal to more transactions per block. This is important given how many dApps are running on ETH. Less space per transaction also means reduce blockchain size which allowed increased amount of average people that can be a node which leads to more decentralization.

-For the account model you are either sending money to someone else, or to another address you own. You cannot do both. With the UTXO model, you can ‘mix’ transactions together, doing multiple transactions to both you and someone else.

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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? The benefits are simplicity, familiarity, and fungibility. Fungibility is increased since merchant blacklisting of coins used for illicit activities is difficult to accomplish.
  2. The account model does lessen privacy because it is easier to identify where coins come from and to whom the coins are send to. In the UTXO model the wallet addresses change and therefore not easy to connect a transaction to the sender or receiver.
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  1. Faster and more efficient.
  2. Privacy is limited. you cant trace a transaction through a chain with input/output history.
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  1. The blocks can include more transactions which helps with scalability. Lower storage costs also help to reduce the potential of centralisation that may occur if costs become prohibitively expensive, raising the barriers to entry for the average person.

2.It’s easier to follow transactions with the account model, where as with the UTXO mode, one output may be transacting with multiple addresses.

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  1. The account model is more efficient with faster transactions, it saves space and reduces the size and growing of blocks.

  2. The account model is not so great for privacy it easily to know where the money come from and where you send money to. UTXO you can have several outputs at the same time with privacy it makes harder to track and know which address is the same as the senders.

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  1. More simplistic code saves space within each transactions allowing more per block

  2. UTXO gives the ability to send some change back to yourself while making it more difficult to “follow the money”. Account model makes it very easy to see exactly how much an account sent/receives.

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  1. When the transactions take less space there is free space to use for other purposes.
  2. It`s easier to track single transactions, who is sending to who is more visible on the blockchain. Also it´s not possible to send ETH back to your own address (same wallet)
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  1. Less space means faster network
  2. The account model has value going directly while the UTXO model obfuscates with multiple outputs
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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Less space means faster network an more transactions can be handled

  2. How is the account model not as great as the UTXO model for privacy?
    As it just moves numbers from A to B (e.g. 1 ETH from A to B) it is very transparent and as it can be viewed on the blockchain you can see who transfers which numbers!

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  1. Because of scalability, it means you can have more script in a block

  2. The account model is not as private as the UTXO model, you can also not trace the transactions far back from the origin as the UTXOs, in the account model, you can not send multiple transactions. You can only send fro A to B

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  1. The account model means that ETH transactions take up less block space (compared to BTC transactions, for example). This benefits the ethereum blockchain because it makes it easier for nodes to join the network, because less computer power is needed. It also prevents the kind of bloating that we learnt about in the bitcoin module, where overloaded blocks led to the segwit soft fork.

  2. The account model is less private than the UTXO model because all transactions made by a single account can easily be traced back to that account. (They will all show as transaction A to B, A to C, A to D etc.) Whereas in the UTXO model, transactions eventually end up scattered and difficult to follow. 1 ETH = 1 ETH (i.e. the same ETH), so it can be followed and tracked more easily, whereas BTC shows up only as inputs and outputs in the form of UTXOs.

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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Ans - One block can store more transactions, increase storage efficiency.

  2. How is the account model not as great as the UTXO model for privacy?
    Coz in account model u can easily track the account and money where is it come from . whereas in UTXO it is very difficult to track coz in UTXO , one input can have multiple outputs and one of that could be yours also . Also UTXO model doesnt show exact balance .

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  1. Takes up less space (memory)
  2. Account model is based on double entry bookkeeping - what is debited from one account is credited to another. The specific credit debit transfer is linked to specific addresses. Easy to trace flow of ETH
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  1. This is a benefit because you can process more transactions faster.

  2. The account model is not as great for privacy as each transaction can individually be traced. The UTXO model allows for multiple outputs in one transaction.

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  1. It saves effort in writing code and running code.
  2. You cannot hide the amounts sent or received and no transactions are sent to yourself as it is in the UTXO model.
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  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    -yes , ethereum works as an updated account balance sheet which just shows how much ether each node have. Unlike in bitcoin, you would need certain feasible inputs for certain outputs which contained transactions, hash #s , nonce along with digital signatures which sums up to carrying heavy amount of bytes in a block. With ethereum, there is no inputs and outputs , just programmable code with instructions as byte codes which takes less space in ether block. hence you can put more transactions into a ether block and some scalability.

  • How is the account model not as great as the UTXO model for privacy?
    -hence in bitcoin, utxo’s could be tracked to the source and with coin by coin, but with ether, its just updated a/c balance, with no inputs or outputs, so tracking to the source or coin by coin is difficult, hence making ethereum less private or less secure in the network. This is where maybe EVM comes in to protect cpu/nodes from direct execution or interaction with programmable code to release smart contracts and avoid scams or attacks to nodes.

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  • Faster transactions because more tx on each block
  • The transparency shows who paid whom
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