1.UTXO stands for unspent output from bitcoin transaction
2.When the user does not have the required funds for their (UTXO), the user is not able to fund complete their desired transaction
3.Bitcoin wallets display a fee depending on UTXO Output and Inputs both subtracted and thus, displaying your UTXO FEE
4.To increase your privacy on transactions, you can change your address on each transaction
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are ‘remaining balances’ of a particular account. They are the difference between the (transaction inputs + transaction fees) and unspent outputs. They are recorded on the Blockchain and tallied or amalgamated within the wallet.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If the UTXO cannot cover the fee associated, the transaction will not be accepted by the miner(s). The wallet will first calculate UTXO’s available and imply a fee to be paid. Since miners are incentivized to process transactions with the highest fees, the transaction will likely be rejected.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet will source the Blockchain for historical transaction fees and will subsequently pick the fee deemed most appropriate. In this case, a fee is implied- not specified. If a wallet is able to specify the fees paid to a miner, it may be possible to incentivize miners to include the transaction with the block being processed.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By utilizing multiple wallets for input and again, multiple (likely separate) wallets for outputs it is possible to obfuscate the person or entity tendering the transaction.
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- UTXOS are unspent transactions outputs, basically is the balance on your wallet.
2.transactions would be declined.
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Fee = imput - output.
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You can basically use as many imput and outputs as you want. The more you use it the more privacy you get.
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Yes it uses a method called coinjoin. The problem is that you kind of need to send the same values or denominations of it than the someone else wants to send at the same time.
Another method you can use in bitcoin is to just use a different address each time you receive funds 
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Why not just use multiple addresses in the same wallet 
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are transactions that have not been spent and are stored inside a users wallet aka amount of money saved in your wallet. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
- Then the transaction will get declined .
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet will check the blockchain of previous transactions and figure out the best possible fee. - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
There always different address being generated for both input and output. This will make it complicated for hackers or anybody to be able to track the output back to the sender.
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- This is a crypto asset that are free to be spent.
- It sends two UTXO and then the difference is returned back to you.
3: The transaction fee is the difference between the input and the output of a transaction. - Could send a larger UTXO to a customer so that the “change” will be send back with a differnet transaction number attached to it.
Question:
Does this mean that your input transactions are not added together? Like in a bank account, I receive $5 from bob and $3 from John. Now the bank shows that I have $8. In my crypto wallet, would it show that my wallet has a UTXO transactions for 5 and a UTXO transaction of 3?
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Utxo’s are unspent transaction outputs. Utxo’s can be use as a record of received and unspent tokens giving a balance.
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The wallet will use the next utxo to ‘top up’ the requested amount to be sent from unspent balance. If the input is larger than the output requested, the ‘change’ will be sent back to the sending address minus fees.
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The fee is calculated from the total input Utxo’s. This can be worked out by subtracting the output from the input.
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Use multiple output addresses. Depending on where they are sent, some wallets have no KYC so can’t be liked to a person or organisation. The transaction however is visable to everyone.
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXO is a TX that functions as an input previously to be spent into any function. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Transaction will be rejected -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
UTXO = Outputs + Fee
Fee = UTXO - Outputs -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Outputs may be same wallet
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This would be seen on the blockchain, but your wallet usually combines this and shows you the complete balance. More advanced wallets do have the option to display balance by addresses and by UTXOs Electrum being one of them
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UTXO’s are input transactions that have not been used in your wallet
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You will need to use more than one UTXO to complete the value of the transaction, like having to pay 15fiat and using the two 10 fiat notes you have in your pocket
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Your wallet will examine current traffic in the blockchain and will determine the fee you need to pay to get your transaction processed
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With multiple transactions
Describe what Unspent Transaction Outputs (UTXO) are.
That is when a transaction has arrived to a specific public address and not been sent away further from that address so the owner of it can still send it to someone else. I know it really isn’t any coins for that matter but I in a way view it in my head that an unspent transaction is like a physical coin, the physical coin has like the unspent transaction had its HUGE history of changing owners. The physical coin going in as input to another owner is then no longer a unspent coin at the first owner, the second and last owner all of a sudden gets a unspent coin.
Simply put its just transaction input that hasn’t been used as output.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If you haven’t enough funds I guess its not a valid transaction. If you have enough funds but its split between several smaller UTXO then your wallet will combine enough of them to reach the desired output, if it becomes more than the output then the rest is sent back as change to you.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
First the Bitcoin wallet make an estimation about how much is needed for a fee at the time to get the transaction on the blockchain in a reasonable time. How the Bitcoin wallet does this in practice is through spending the complete amount as outputs until the total sum of the UTXOs in the transaction - spent UTXO = to that of the calculated fee that the wallet has made.
Simply put the wallet takes the complete sum of the UTXOs in the transaction sent minus the actual unused amount spent in the transaction to get the actual fee.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
I don’t know practically how to do it but with the rule that the complete amount of sent UTXO need to have an receiver (everything else is going to be in the fee) then the change that is going to oftentimes go back to the sender of the UTXOs can in some way send that change to another public key (Bitcoin address) that he/she is owning. Then from the outside it looks like the owner of all the sent UTXOs have no longer ownership of them, even if they might still have that through other addresses.
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Wouldn’t using multiple transactions be more expensive? You can achieve better privacy by just using a new address each time you receive funds
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Well, they are transactions that have been sent to an address that have yet to be moved, so they remain in and unspent state.
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It would have to involve multiple inputs to cover the output which is Outputs + transaction fees.
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Fee + Inputs - Outputs.
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You could always sent inputs to a newly created address for anonymity. There are even coinmixers out there that can pool your transactions and delay and split them up to increase privacy.
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- UTXOs are money inputs that you received
- As long as the overall sum of all UTXOs covers the cost, all is ok. If the total UTXOs are less than a transaction + fee, you would need an additional input to cover the cost otherwise transaction will be denied.
- Wallet determines the transaction fee and makes suggestion based on how congested the system is. Higher fees get processed faster.
- Use multiple outputs
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Describe what Unspent Transaction Outputs (UTXO) are.
Records of previous input (deposit) transactions that haven’t been spent
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If there are other utxo’s recorded they will bundle enough to cover the transaction, subtract fees, then sent remainder (change) back to your wallet. If there isn’t enough utxo’s to cover the amount, the transaction will fail
How would a bitcoin wallet specify the transaction fee when creating a transaction?
A bitcoin wallet checks the blockchain for average transaction fees and applies the rate to transaction
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By receiving transactions into a different public key each time you can improve the privacy
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thanks for the advice. How do you create a new address every time? Is this created by the wallet automatically?
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UTXOs are transaction outputs that have not been spent. If you have UTXOs to spend, when you spend them they become the inputs for your transaction and the outputs from that transaction (how much money and to which addresses) become new UTXOs.
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You instruct your wallet how much money you want to go to which addresses and the wallet figures out the rest, deciding which UTXOs to use for the transaction and even calculating the transaction fee.
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The wallet looks at the blockchain and the previous transaction fees, then proposes a fee that will get you into the blockchain reasonably quickly.
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Privacy is inherent in the way transactions are constructed and displayed. All anyone can see is how much was sent to which addresses and what the overall transaction fee was. If you want to increase privacy, you could control multiple addresses.
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1)UTXO are balance that you receive but not yet spent from your wallet.
2)The transaction wont be successful
3)using the input minus output equals the transaction fee
4)Use different address when receiving something.
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Describe what Unspent Transaction Outputs (UTXO) are.
Answer: UTXOs are inputs from a prior transaction that can be used for future transactions and combined with other UTXOs.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Answer: the transaction would fail…unless you have additional UTXOs that can be added together into the transaction that would cover the transaction plus fees.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Answer: The transaction fee is the difference between the transaction inputs and transaction outputs. It’s not always specified upfront. You can often choose the fee manually, where a higher fee will get validated vaster because of the increased incentive to miners.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Answer: You could send multiple transactions to yourself at different addresses.
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