Homework on UTXO vs Account Model

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?

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

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  1. Any space savings is a benefit. As the network full nodes are meant to be operated by individuals rather then data centers the lower the data requirements the more potential participants.

  2. You can’t send funds to your self and funds go from 1 account to other account. It’s easier to visually follow.

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1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Blocks can include more transactions, which is crucial for ethereum which has hundreds of ERC20 tokens settling on the ETH blockchain.

2. How is the account model not as great as the UTXO model for privacy?
There are no change wallets in Ethereum. The impact is that, for Ethereum, the destination address(es) are the ones originally specified. Bitcoin, on the other hand, sends any unspent UTXOs to a “change” wallet, and it therefor is more difficult for someone to know which of the addresses sent to are new individuals vs the sender’s change wallet.

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  1. Account model does not save each utxo as it stores balance of all transactions there reducing size of block making it faster
  2. Anonymity is not possible in Ethereum where its traceable if one tries to send to same account.
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  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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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

    One block can store more transactions, increase storage efficiency.

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

    Easily to know where the money come from and where you send money to. UTXO model is hard for public to tell which amount of money goes to where, because one transaction could have multiple outputs.

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  1. More transactions can be stores in less amount of memory, this increase the scalability of the blocchain.

  2. It is not as secure because u can see it comes from which account and goes to which account.

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  1. The account model doesn’t require much space as the UTXO model. That is a benefit because it takes up less space and has a greater storage capacity.

  2. The account model is not as great as the UTXO model for privacy because there are no outputs. Each transaction can be seen from the outside, how much was sent and to whom.

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  1. Less space for a transaction means, more transaction can be done at the same time. Therefore people don´t have to wait so long for a confirmed transaction. And this is important to adopt it.

  2. With the account model, you can see and follow every transaction. It the UTXO model, you can have several outputs at the same time and can hide, to whom and how much you are sending.