Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#2114

  1. Unspent transaction is your wallet balance

  2. Data base will b searched, consensus on value then next step is disbursement of payment or the info process will not be applicable for the time until enough utxos have accumilated
    3.input=output+trans fee

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#2115
  1. Utxo = input transactions that are not spent yet.
  2. it will not complete the transaction
  3. Input- output = tx fee
  4. Multiple outputs can result from a single input
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#2116
  1. transaction output that have not been spent already.
  2. you can combine several diffeent inputs to cover a transaction.
  3. you can choose it or it chooses the fee that will cover the transaction reasonably fast. in general it is input-output= fee
  4. use different adresses that you control.
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#2117

  1. unspent transactions in my wallet

  2. transaction cannot be done

  3. transaction fee is the difference between output and input

  4. you can use different wallets and adresses and send the funds through different ones to disperse the tracking

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#2118

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’s are previous amounts of Bitcoin sent (by others or yourself) to the current valid Bitcoin address that you are working with that you have not yet spent (that is to say, that you have not yet sent to another address).

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Your wallet would tally the value of valid UTXO’s that have seen previously sent to your Bitcoin address, and if you had enough Bitcoin for the transaction, your wallet would construct the transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? The transaction fee is implicit since it will be the input minus the output.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? When viewing the blockchain it is not readily apparent if a user is sending Bitcoin to another user’s wallet or sending Bitcoin to another wallet that they themselves possess, so by sending Bitcoin to more than one user in the same transaction where a certain amount the Bitcoin involved will be sent back to another wallet that you possess might be useful for accomplishing this.

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#2119

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO is on of the key words in Bitcoin blockchain. UTXO is representing a coin, UTXO is the way how to create coins as an unspent transaction output. Each transaction is creating little coins from the originally mined coin in the block. The transaction output is connected to a private key. When I receive bitcoin as an input, UTXO is melting the coin and creating a new coin wihthin all my inputs are added. When I sent bitcoin, UTXO is again creating a new coin. UTXO needs to be spent at all. So the difference between my sended money and fee, goes back to my private key adresse.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    if the UTXO is too little, the transaction will not be confirmed by the network.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The difference between inputs and outputs. the wallet is doing it for me, checking the blockchain.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Privacy is garantueed because you can sent money to yourself. Use a lot of different bitcoin adresses.

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#2120

You forgot to answer the final question :wink:

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#2121

1- Describe what Unspent Transaction Outputs (UTXO) are.
They are the unspent results of previous transactions. The UTXOs your wallet can spend make up your wallet’s balance. These UTXOs become the inputs for subsequent transactions when you want to spend / send.

2- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If your wallet cannot find a UTXO you can spend that is large enough to cover the output(s) of your transaction, it will construct the transaction by combining two or more UTXOs (if your overall UXTO balance is large enough to do so).

3- How would a bitcoin wallet specify the transaction fee when creating a transaction?
The formula is: inputs = outputs + transaction fee.

4- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
When looking at a list of transaction outputs (UTXOs) it is not easy to reconcile who the owners of the various addresses are. Sending money to other addresses you control - sending to yourself within the same transaction - increases the level of privacy in the transaction.

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#2122

  1. UTXOs are amounts of Bitcoin that were sent to to an address but haven’t been spent yet

  2. Multiple UTXOs will be combined into the transaction and the change is sent back to the sender address

  3. Inputs - outputs

  4. Sending back the “change” to an address that is controlled by you, but isn’t the same as the sender address

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#2123

you can not recognize who is the owner of the coins, because you send the coins back to your own adresse.

#2124
  1. UTXO is the balance that you received and it haven’t spent from your wallet.
  2. If don’t have enough to cover the transaction, it will sum up with other small transaction and my transaction will be executed.
  3. Transaction fee = input - output, the bitcoin wallet will recommend a fee based on supply and demand of that time.
  4. You could make a lot of transaction to others and back to yourself using different addresses.
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#2125
  1. it is what i have available on my wallet
  2. no transaction possible
  3. existing UTXO on the wallet minis transaction amount = fee
  4. private blockchain
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#2126

But if you use a private blockchain, how will you convince people to use it. Why not just use the Bitcoin blockchain privately? :wink:

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#2127

  1. UTXOs are the unspent outputs of transactions to a recipient. At any time, the amount of cryptocoin one has available to spend is entirely determined by the sum of all UTXO associated with their public/private keys.

  2. If a single UTXO can’t cover a transaction, more UTXOs will be utilized until the sum is equal or greater than the necessary output, and if greater, it will send the difference back to the sender as UTXO

  3. A bitcoin wallet would show that a slightly less output quantity would be received than the amount being sent. This is because it’s taking the fee into account, and this can be discovered by subtracting the output from the input.

  4. Because the inputs and outputs don’t have to be directed to/from a single source, and that you can have output redirected back to yourself, it can help you be anonymous. And because the sources of transfer appear essentially as long numbers it helps to conceal the exact details of the activity.

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#2128

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Unspent transactions to a wallet. You can only spend the sum amount of UTXO (you don’t have a “balance” for your wallet, it’s calculated based on your UTXO.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    You can’t send the transaction

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Output - Input = Transaction fee

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    I guess with using a different address of yours as one of the outputs?

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#2129
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • They are transactional inputs that have been output by the senders account and have not yet been spent(Output).
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • The transaction would be invalid and would not be accepted into the BlockChain if there was only one input. In case of many inputs, they will be summed up and the required amount will be sent.
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • Transaction Fee = Inputs - Outputs
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • Generate new addresses every time a transaction is carried out and group random transactions together based on the timing of the transaction so that a single accounts output aren’t all grouped together to prevent tracking a single accounts output.
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#2130

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.

A= A UTXO is an input which is ready to be used a new transaction

  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    A= another UTXO will be used to make the difference , once the required amount is sent, the change is sent back to the wallet
    If the scenario if there is only one UTXO , then the transaction will be invalid

  2. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A = input - output = fee

  3. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    A = using multiple transaction with different address to mask

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#2131

Correct :slight_smile: most modern wallets (HD wallets) already do this for you.

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#2132

You can just use a new address to send the change back to you in the same transaction :slight_smile:

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#2133

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO means Unspent Transaction Output. It is the leftover cryptocurrency that remains following a Bitcoin transaction.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The network will combine the correct amount of UTXO’s for the purchase from the wallet. If the exact amount cannot derive from one or more UTXO’s, it will select a higher amount of UTXO’s for the transaction and the residual will go back to the wallet.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is included and subtracted from the UTXO that will go back to the wallet as change. Sum of UTXOs in the transaction – Transaction amount – Transaction fee

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? The input must equal the output plus the fee. The wallet tracks the UTXO’s and store private keys. The wallet calculates the fees and the private keys validate the transaction. The private keys are never exposed like a public address.

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