Homework on UTXO vs Account Model

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

  1. In the account model every coin are the same the transactions are more easy cause they go from point A to point B directly. Basically Every transaction process a single move that is no UTXOs or “change” involved.

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

  1. As said before doing a direct transactions from address A to address B you can’t “cover” the transaction putting more output in a single transactions as you do with btc UTXOS.
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1.The benefit of using less space is that you could see how much money you sent and what you have left.It reflects the balance of an account. Like a debit card or a ATM that check the total balance of a user’s account before approving a transaction.
2. The account model in Ethereum is more Fungiable. It is impossible to track each single output like UTXOS in Bitcoin. In Ethereum there is a balance showed and it shows how much money you send and how much you have left in the account. That is why there is a lack of privacy.

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The account model doesn’t require much space as the UTXO model, why is that a benefit?
A lot more transactions could fit into each block together with the code and state for smart contracts. Simply put is that the account model benefits through fitting a lot more transactions into each block than the UTXO model.

How is the account model not as great as the UTXO model for privacy?
For the part in the protocol where the UTXO model for Bitcoin is saying that every transaction must spend the entire input, which means that some part of the output could go to another actor in the network together with another output going back to the sender of the transaction. This will make it harder to follow where all the output of a transaction is going and in the case of many transactions happening on a daily basis then it can get extremely hard to try to follow the owner of the UTXO’s.

Why the account model is not as great in the privacy aspect is because the protocol simplifies the transaction in such a way that a transaction only updates the two account balances in substracting from one account and adding to the other account. This will make following the actual coins not as hard and for the “want to be” anonymous actor in the network will have to be smart and do some extra work to raise the privacy when transacting.

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  1. smaller transactions size, so smaller fees
  2. you can see transactions history from x to y, model is simplier for example id sending eth you do not have “change” to send back to yourself
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  1. Blocks can include more transactions and therefore have more use cases

  2. This makes Ethereum more traceable since its just from one account to another. While with bitcoin you can send some to another wallet and also some back to you in the same transaction without knowing which bitcoins went where.

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  1. With less space it’s easier to run a full node, more full nodes give a more stable network.

  2. In the account model you can see public all the funds and transactions done on an account.

1 - More space on the blocks.

2 - Its more easy to know who are sending and who are receiving. Because in ETH it goes directly.

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  1. Because it will reduce the size of the block in the Ethereum blockchain,
    and the account model is more easier to express in code and in text compare to the UTXO model. The lesser the size of the block the lesser it will occupy space then it will also be easier and faster for it to process transactions which it can entice more participants to the network.

  2. It is when you look at the Ethereum blockchain from the outside you can easily see
    how much ether you sent to another account and how much you received from another account, so it means to say it is easy to trace the transactions unlike the Utxo model which is more complex to track the money flowing because there could be transactions that has multiple inputs and multiple outputs at the same time.

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