Residuals of other transactions in the blockchain sent to the address of a wallet that has been accumulated and is available to be spent by sending to another wallet address.
Probably be denied.
Probably look at other similar transactions on the blockchain and suggest an amount.
Use many wallet addresses in the transaction to confuse any human just viewing the transaction.
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1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are addresses under ones control, that have some bitcoins left to send (spend). The sum of all those addresses make up the total wallet value.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Then the transaction cannot be made
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The transaction fee is specified as the difference between the amount to be sent and the amount to be received.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
All transaction ever made are registered on the blockchain. To somewhat increase the privacy, a user is advised to not reuse old addresses but, generate and use new addresses instead. The legacy bitcoin wallet enforces this. for example. That way it is harder to associate a given address to a specific user.
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The wallet will calculate the difference between inputs and outputs. UTXOs are unspent outputs that are used as inputs in a new tx 
Most of them do, however there are two predominant types. One is UTXO based where most Bitcoin forks fall into, the other one is account based where Ethereum falls in
The wallet can combine multiple UTXOs as inputs to a new tx so its large enough to cover it
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You’re right. Haven’t thought about this obvious scenario
1)it is unspent funds from the previous transaction.
2)Nothing would happen, the transaction will not take place if the fee isnt covered. Miners also need to get paid you know. Lol
3)Well the wallet would automatically calculate it for you, but its the funds have minus the funds you and to send then you get a figure and thats a fee, i think.
4)Using different addresses for every new transaction.
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You could combine more UTXOs into one tx
Yes, the fee is calculated by subtracting outputs from the inputs (input - output = fee)
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- UTXO or Unspent Transaction Outputs are representative of Bitcoin amounts received from any number of sources that are stored in the wallet until Bitcoin is spent.
- If a single UTXO is chosen to be spent, but it doesn’t represent enough value of Bitcoin to cover the transaction at hand, another UTXO that’s available will be constructed into the transaction and ultimately, once the fees are calculated, any remaining overage will be routed back to the payer of the Bitcoin, so the payer will receive Bitcoin change from the transaction. Usually the wallet will construct the transaction with a built-in appropriate fee, as fees may vary, in order to have the transaction promptly processed by a miner who will make money on the fee and therefore choose transactions with the highest fees built-into the transaction over other transactions available for processing into a block and appending it to the chain.
3.) The bitcoin wallet will analyze the transaction by factors including how large it is, as larger transactions take more mining energy and time to process, and pad the transaction accordingly to make sure it is processed on a timely basis. There are wallets that allow the bitcoin owner to make decisions as to how much fee to include in the transaction. - You may hide what is happening in a transaction by including inputs from different sources or multiple inputs when it would be perfectly possible to use a bitcoin increment that will cover the entire payable amount, plus you may include multiple outputs that aren’t really for multiple parties as two or more of the bitcoin addresses actually belong to the payer. This multi-prong manner of constructing the transaction effectively hides what is actually taking place.
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Describe what an Unspent Transaction Outputs (UTXO) are.
An Unspent Transaction Output (UTXO) is the output from a previous transaction that you recieved. This adds up the balance of your wallet. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If you don’t have any single UTXO that is large enough to cover for your transaction, then you will use more than one UTXO’s. If you still don’t have enough to cover for your transaction then it will be declined -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
A bitcoin wallet can specify the transaction fee by using this formula. Input - Output = Fee’s -
How could you use the notion of transactions inputs and outputs to increase privacy in your transactions?
To increase the privacy/security in a transaction, you can send the amount of crypto you want over to someone and the rest of your UTXO you can send back to your own wallet. You can do this by sending this over to the same wallet with a different address.
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An unspent transaction output is when an input is sent and has not been used by the receiver/receiving wallet address therefore “unspent “.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet will read the blockchain for any other input UTXO that can be combined to cover the output required . If there is no other unspent inputs available the transaction will be rejected & will not be recorded on the chain.
3.How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet calculates the fee based on current miner fees & it is represented within the transaction ( input - output )
4 How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Nobody can see any information on the “Person/People” involved in the transaction , there is no way to be able to see which transactions /input or output are going to which person. So there is full transparency within the transaction but complete anonymity .
What if your transaction involves an address where you withdrawn from an exchange where you did KYC?
- Unspent Transactions Outputs are incoming transactions that are un spend by the bitcoin wallet.
- the transaction will be denied.
- The wallet would look at the last price of the network and reasonable speed.
- you could send the transaction to your self in a different wallet address inside your wallet to increase privacy.
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It’s a really good feature. Our hosted wallet convo the other day had me thinking about how they hold the private keys of the customers and it was plain to see why: The key and address/addresses need to be held somewhere! I think host wallet provide a very nice service… providing they’re secure… Lol.
You are talking about a hosted wallet, for which the keys don’t belong to me. A representation of my Input & output activity within the exchange is recorded in a ledger, they don’t see any person on the output of my transaction if I’m sending to an outside wallet address. I could be sending to my own other wallet or someone’s else’s your identity is not attached to your key & hashes are used in all bitcoin transactions to protect the identity of the private key by use of Digital signatures in transactions.
Describe what Unspent Transaction Outputs (UTXO) are
the balance of the full wallet balance minus your transaction and fees
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
wouldnt go through
How would a bitcoin wallet specify the transaction fee when creating a transaction?
full balane minus output cost = transaction fee.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
use a private blockchain
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1- UTXOs are previous outputs that you havent spent yet
2- You wont be able to send the transaction
3- Input minus output = TX fee
4- Receive on different adresses the coming input.
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I don’t use hosted wallets and avoid them as much as I can. The only exception is when I want to buy or sell my crypto on an exchange.
I would recommend using a hardware wallet instead.
It is true that you could as well send the funds to someone else instead. But in most cases it is safe to assume that these funds were withdrawn to your own addresses that belong to you. In any case there is a link to your identity and the addresses you interact with.
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While this is true, but how would you mitigate the privacy issue on a blockchain like Bitcoin?