Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#2275
  1. UTXOs are all value put together at your disposal with you private key.
  2. if you don’t have enough UTXO, transaction can not be executed.
  3. transaction fee will be specified in the ledger, as the fee to the miner;
  4. senders and recipients can not be seen on the blockchain, only transactions themselves are shown on the ledger. Keep private key safe and private is crucial.
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#2276

You can try to combine multiple smaller utxo’s together to cover the amount.

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#2277

What if you withdraw from an exchange where you did KYC? :slight_smile:

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#2278

You can always combine multiple smaller utxo’s together to cover the amount.
Transaction fee’s aren’t specified in the ledger, The difference between the inputs and outputs of a transaction is the fee for the miner. but most wallets will check the mempool to give you an estimate of a reasonable fee to get your transaction confirmed. But users can choose it manually as well.

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#2279

1)Describe what Unspent Transaction Outputs (UTXO) are… Unspent Transaction Outputs (UTXO) are the data created from a previous transaction. The total value of all UTXOs connected to a single wallet display your “balance,” or the remaining unspent transactions outputs available for your use.
2.What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?The transaction will be denied because there are no available UTXOs to meet the minimum transaction amount requested.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction? transaction fee is the difference between the transaction inputs and transaction outputs. Also, when sending a transaction, you can choose the fee manually in an attempt to expedite the transaction speed or save more by reducing the amount of the fee, thereby potentially reducing transaction speed.
4.How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?You can increase the number of outputs to make tracking transactions more difficult since addresses hold no personal information and are not associated with one another, except when a transaction between them is made. Several outputs could be addresses you own and nobody would know.

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#2280

1.UTXO output is the amount of unspent fund on the blockchain that a private key can access and use in a future transaction. There can be numerous UTXO that a private key can access.

  1. A wallet collects all UTXOs a private key can access and provide a sum. This sum becomes balance(total amount of spendable). Regardless of how many UTXOs made up your balance and the amount available in each UTXO, each bitcoin transaction will use all available fund (UTXOs) in a wallet and return any leftover minus fee to a new address(change address) which now become a new UTXO accessible by the wallet for a future transaction. The purchase amount becomes a new UTXO for the recipient. As long as the balance is greater than the purchase amount plus fee it is spendable.

  2. The transaction fee is in the unit of satoshi per byte. This rate depends on transaction size and current network usage. A wallet can calculate the fee automatically base on the condition of the network and how fast you’d like to process a transaction. Miners are incentivized to process higher fee transaction first. Fast transactions will cost above average.

  3. When a UTXO spends as a transaction input, the transaction output becomes one or more new UXTO. The new UTXO is either send to new recipient, transfer to a new wallet or come back as changes from the transaction. a bitcoin wallet can generate several new addresses to send and receive new payment so when there are multiple input and output it can be harder to trace the direction of the fund when each UTXO is assigned a new address.

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#2281

#1- In a transaction sent to you as a credit and that you do not wish to spend , it then becomes a “UTXO”
#2- If you start a transaction without enough “UTOX” to cover your transaction , it will not happen because it cannot be varified
#3- Transactions must always balance …Input-output-fee=0 , with fee usually adopted by miners’ previous block charges.
#4- multi-address’ used in outputs can confuse ,but not necessarily eliminate software type tracking.

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#2282
  1. Funds received in a previous transaction that are not yet spent and therefore available for spending.
  2. More UTXOs will be combined to create a transaction.
  3. Inputs-Outputs
  4. You would send the amount of your UTXO you don't want to spend to be sent to an address you own, which is not the same adress you sent the transaction from.
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#2283
  1. UTXOs are transactions that have inputs and outputs, at least 1 for each, that are the sum total in your account allowing you to be able to send money to many persons and yourself.
  2. If you don’t have a single UTXO that is large enough to cover for your transaction, the transaction would not be able to be completed. Inputs and outputs have to
    to be equal. If there is nothing registering in the output, then the transaction is not allowed.
  3. The bitcoin wallet specification for the transaction fee would come through the SPV which would dial a node to see if you have funds. The inputs plus the outputs equal the TX fee.
    4.Use if offline paper or hard wallets never being connected to the Internet is the way to increase privacy in your transaction.
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#2284

Alko, I’m feeling confused about how grades are generated for each assignment. Is there a specified amount of time allotted when we work on assignments, because I see 1d or 15m, 3hr or, possibly, 5d and am translating that the number of minutes, hrs or days I may have spent completing an assignment. Please advise!

#2285

Homework on Bitcoin Transactions and UTXO - Questions

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

Unspent transaction outputs are the transactions that you for example received but not sent yet

  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?

That you can’t send as you don’t have that

  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?

Other then what ivan said I found some extra info

Size of your transaction in bytes multiple it by the median byte size take the answer in satoshis and divide it by 100million

The fee is based on the size (in bytes) of the transaction and the age of its inputs (how long ago the coins spent were received).

  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

I watched the video but have not found anything related this also did a google search but nothing am I missing something?

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#2286

The remainder is the tx fee, so inputs - outputs.

There is no difference in privacy in this case. If you withdraw from an exchange where you did KYC to a paper wallet, the exchange will know that this address belongs to you. A solution could be to generate a new address to send the change back once you use up the paper wallet.

I’m not sure what grades are you referring to. Do you mean quizes in the courses? These are not time sensitive, you probably made some wrong answers, you can check these at the end of the quiz. :slight_smile:

#2287

This might be how some wallets determine fees. But on the blockchain fee is determined as the remainder of inputs and outputs (input - output = fee)

Not sure where this is explained, its been a while since I’ve seen the videos. But using a different address each time you receive funds will help you increase your privacy :slight_smile:

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#2288

it makes sense thank you for your answer

#2289

  1. Unspent Transaction Outputs(UTXO) are essentially your balance on the blockchain.

  2. More UTXOs will be added then what is left will be given back as change.

  3. The transaction fee is implied. Input - Output = fee amount

  4. One single input could make several different outputs so its kinda impossible to know who is getting the bitcoin. If you use several different addresses it will be even harder to pin down exactly how much btc someone has access to.

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#2290

  1. The sum of your inputs to a transaction.

  2. Your blockchain would have to sum up all your UTXOs.

  3. The blockchain will recommend the fee to you based on the previous transaction in the blockchain.

  4. All transactions are performed and displayed publicly for everyone to see, therefore no privacy.

#2291

There is a degree of anonymity where you have to determine to whom the address physically belongs to. If you can’t, the address is technically private :slight_smile:

#2292
  1. UTXO is the balance in your wallet
  2. The transaction will be declined.
    3, Fees=Input-output
  3. Use different output adresses
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#2293

1.Balance of your wallet
2. Transaction would not go through
3. Input-output=fee
4. Generate new adresses so it is hard to tell which out put goes back to the owner

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#2294

The sum of all UTXOs is the balance, an address can have multiple UTXOs. :slight_smile:

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