Homework on UTXO vs Account Model

Ethereum 101
#1285

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

UTXO model limits the amount of code that can be fit within a block and also the transactions.
Whereas the account model allows for more transactions to fit in a block and long smart contracts that having different states with different conditions.

2.How is the account model not as great as the UTXO model for privacy?
Account model is a transfer from one account to another. Anyone can see the amounts and destinations for all transactions.
In UTXO model transactions can be mixed and sent to mulitiple wallets at the same time which makes difficult to track the transactions.

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#1286
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

more transactions stores in less memory & increase scalability of the blockchain.

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

is not so great for privacy because anybody can see each transaction , the quantity and to who was adressed.

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#1287
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

Answer:

In Ethereum you don’t have UTXOS meaning,

Is more like, move fund from Account: A to Account: B.

Very Simple and takes less space.

It is way easier to do. Because it is easier to tell:

Move 1 ETH from A to B

Witch is easy to express that in Code and in text.

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

Answer:

On Ethereum you do not have the same tracking, you only have updates on the balances. And the balances are just updated, and you can’t see exactly where everything is coming from at a Coin level. And therefore you don’t have the same traceability as in bitcoin with is input and outputs, which makes the coin more fungible.

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#1288

Great answers! It’s easy to understand. Great work. :clap:

Carlos Z.

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#1289

Yes sir, but basically in both models you can see all the funds, because both are public’s, maybe could you detail a little bit more your question?

If you have any more questions, please let us know so we can help you! :slight_smile:

Carlos Z.

#1290
  • It will require less memory, which is good because it require less resources to run a full node
  • It will make it easier, quicker and cheaper to carry out transactions
  • It leads to greater efficiency of the network as data can be updated quickly
  • It makes for quicker block times

The account model is not as good as the UTXO model for privacy in the way that when you create a transaction in the UTXO model, you can actually send part of that transaction back to your own address, and this cannot be traced.

With the Account model, when you send a transaction, it is not possible to send part of the transaction back to your own address, so it can be seen how much you sent in total.

#1291
  1. It is a benefit because it saves the space for other transactions and participants on the etherium network.
  2. It is not a great model for privacy because on account model is easier to trace the transactions as etc transactions does not have inputs and outputs, they only go from point A to point B so it is easy to track them.
#1292

  1. That is a benefit because it leaves more space preventing congestion allowing for faster processing.

  2. The account model is simpler than the UTXO model. In Bitcoin’s UTXO model there are no balances and you can send money to someone and yourself in the same transaction without the ability to know what went to whom. Ethereum’s account model has a balance making it easier to track transactions.

  • An analogy for the account model is when you use your debit card to buy something the exact amount is debited from your account and your new balance is what is left after each transaction.
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#1293

Faster and more efficient transactions, easier understanding of balance.

#1294

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    because there are no transactions recorded therefore there is more space and faster processing

  2. How is the account model not as great as the UTXO model for privacy?
    less anonymous and easily traceable from multi accounts

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#1295

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

Since miner fees are calculated based on byte size instead of “currency” amount, transaction fees will be cheaper.

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

Due to the fact that tokens on an account model are “added/summed” into a single value in the
account/wallet address, you can never have a “fragmented” token/coin as with BTC that makes
traceability more difficult. (1 BTC split over many addresses)

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#1296

1)It is less complicated so it is much eaiseir for people to read. It is also faster and more efficient with transactions.
2)Because it is fungible as it is easier to trace from one account to another.

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#1297

@sherill
could you be more specific on your answers? :grinning:

Abel S.

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#1298

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    since it requires lesser space, it would not increase the size of the block chain

  • How is the account model not as great as the UTXO model for privacy?
    it lacks privacy since it only contains the updates and not the full list of transactions that happened.
    in account model, you could only see 2 addresses, which is the sender and the receiver.

#1299

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    R: Inputs and Outputs are referred to only include recipient and destination address. Smaller size, faster the consensus model.

  • How is the account model not as great as the UTXO model for privacy?
    R: Account model specifies accounts from the sender and the receiver, straight forward to whom’s wallet is own.

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#1300

  1. The account model is more fungible than the UTXO model, so it requires less actions per transaction, which is supposed to make blocks more data-efficient such that they can store more transactions per data used.

  2. Account models might be less private than the UTXO model because everyone has an account with a balance, as opposed to outstanding UTXOs, which get mixed up during transactions due to the necessity (with UTXOs) for sending yourself change, for example. Since the blockchain is visible to everyone, and each person has an account, your spending is more traceable, akin to that of conventional money accounts.

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#1301
  1. Because the model is more fungible, the coins can’t be traced on a transaction by transaction basis.
  2. Because anyone can see who is sending who coins. Also, ether balances can be viewed.
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#1302

  1. It takes less space on the blockchain. This is especially important for blockchains since each node holds all the data.

  2. In the UTXO model you can have many inputs -> many outputs in each transaction. But in Ethereum a transaction is only an amount sent from account A -> account B. Therefore the transaction structure will mostly be simpler on Eth and easier to track.

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#1303

  1. Because it will require less data usage for the operators who are normal people and not big companies with unlimited resources.

  2. You can see the exact amount of money that was sent, where it was sent from and to which account it was sent where in UTXO there is no way of knowing how much money was sent to the recipient address and how much was sent back to the sender.

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#1304

o Each block will be able to perform more transactions.

o In the UTXO model, the outputs to new accounts do not carry information that shows if the transaction was to another account owned by the same user or owned by a recipient. The account model shows how the funds in the account changes and by design the account has the same owner.

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