Homework on Bitcoin Transactions and UTXO - Questions

[daninvest]

1. Always that someone sends crypto, a new UTXO is created. They are unspend transaction output, what means that you have received and input, but you are not send them yet. Every newoutput is at the same time a new input.

2. Then, more than one UTXO will be used to cover the entire transaction

3. INPUT = OPUTPUT + FEE

4. Using different addresses

[meganova]

UTXOs are bitcoins deposited into your wallet which can be spent. If a single UTXO is not big enough to cover a transaction, then multiple UTXOs can be used. Wallets usually choose the best transaction fee, but some allow you to choose it like in a drop-down control. UTXOs can use different addresses so you can’t track them.

[Alko89]

@meganova

UTXOs can use different addresses so you can’t track them.

True, but to be able to have UTXOs on different addresses you should make a new address every time you want to receive a tx

[theRealLos]

1. A UTXO is an unspent transaction that is available for you to spend with your private key.
2. Assuming you have other UTXOs you can cobble together, you can add them to the a value equal or larger than the transaction plus fee. This will result in a returning UTXO for the excess bitcoin back to you.
3. The wallet typically chooses a fee that will get the transaction confirmed in an adequate time, for example checking what fees were in the last block. Some wallets can let you specify fee parameters.
4. Bitcoin can be moved around between different addresses that are not associated with a particular entity. When a transaction occurs, there’s no way of knowing whether it involves two or more entities or the same entity, thus increasing privacy.

[Moonlightcrypto]

1. UTXO is the input of old output; what was sent to you and you did not spend.
2. If you don’t have any single UTXO that is large enough to cover your transaction you would combine the inputs to cover the transaction, paying what’s due for the product and sending the balance back to yourself.
3. A bitcoin wallet specifies the transaction fee by subtracting the difference between the input and output.
4. Use different addresses that you control.

[Co-Star]

@ivan

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

1. UTXO would equal to your wallet balance
2. The wallet would not allow you to send the transaction.
3. This would be equal to the total inputs less the total outputs for this transaction, a wallet will either select the best fee for you or some wallets slow you to manually select your fee.
4. An individual may send BTC to many different recipients. It becomes difficult to know which addresses belong to who.

[Arisgo9]

1. The amounts of btc that are received (sum of UTXOs) and not yet send/spent.

2. It wont send anything.

3. It will gather received amounts INPUT until it covers the send/OUTPUT amount +fee. Inouther words INPUT = OUTPUT = fee or INPUT - OUTPUT = fee.

4. ALWAYS user new addresses as you can sent/spent also back to yourself via a new generated address, the more adresses to more difficult to track.

[PolkaPig]

@ivan

• Describe what Unspent Transaction Outputs (UTXO) are.
• What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
• How would a bitcoin wallet specify the transaction fee when creating a transaction?
• How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

1. UTXO can be compared to account balance. Its the amount of incoming transaction which has not been spent yet.

2.The wallet includes the value of other UTXO so the total is enough

3.the wallet looks at the blockchain, sees the latest tx fees and provides an estimate.

4. Using more ‘empty / new’ addresses could add to privacy.

[Kim]

1. UTXO’s are the incoming transaction inputs which haven’t been spend yet.
2. The blockchain would reject that transaction or it would connect other utxo’s if you have enough
   funds in total for your transaction.
3. It will pick the fee that it thinks is best for getting your transaction into/through the blockchain fast
   enough
4. It adds a lot of anonimity and privacy , because you don’t know who the adresses ( inputs and
   outputs ) belong to. If the transaction went to the same person or to somebody else is very difficult
   to tell.

[mwonder]

@ivan

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   All the outputs you can spend
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   The transaction will fail
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   Input - output
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Send to different addresses

[arno_crypto]

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

A UTXO is any transaction that was send to a wallet and not spend yet, a wallet does not hold a balance but it checks the blockchain to get a sum of al you received but have not spend.

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

The network would simply ignore the transaction, the network would reach consensus that this transaction is not valid.

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

Most BTC wallets will “look” at the previous fee’s of transactions that have been confirmed and select a fee that will clear the transaction in a reasonable amount of time. Some wallets have to option to specify a fee.

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

Since there is no identity connected to a key on the blockchain itself, someone looking in from the outside would have no way of knowing what you actually send to someone else and not to a wallet you yourself control.

You could send a transaction with multiple outputs of which some of those you yourself control for example. The result would be that one could know how much was transacted, but not how much value has moved to a different owner.

[dFresh]

1. UTXOs are unspent outputs from a prior transaction.

2. If you can’t sum up enough UTXOs, then the transaction won’t be accepted.

3. Academically, fee = all inputs - all outputs. In practice, a wallet usually checks the blockchain and selects or offers a tier of fees which will incentivize miners (or not) to confirm your transaction.

4. You could utilize new and different addresses every time you transact to obscure your trail; but, I’m sure a blockchain sleuth could tie all the transaction together or at worst create a statistical probability of who “owns” what. Still better than nothing.

[Darnell_Calhoun]

1. Utxos are the amount a wallet is able to spend.

2. The wallet would use the comdined amout of utxos to cover the transaction.

3. The transaction fee is specified by input = output -fee

4. Because a transaction will have multiple output transactions it is impossible to know what the actual transaction was. When an in put is sent in terms of fiat cash, the recipient receives the money and give back the change. But you cannot tell which of the two transactions was the actual transactions or if the transaction was sent to a different petson or back to the same person.

[msdhillon5]

1.Unspent Transaction Outputs (UTXO) are the output constructed when BTC is input to a transaction an output of the amount becomes the UTXO that can be moved to another transaction to become a new input.
2.Transaction will never go through and get confirmed.
3. The transaction fee is compiled by checking the blockchain and see current market fees to determine the amount.

• How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  By increasing the number of outputs which makes tracking transactions from original input hard to trace.

[lukeyboy]

1. They are inputs to your wallet waiting to be spent

2.You would need to create a transaction where you pay the vendor using multiple utxos and send the remaining balance to a wallet that you control

3.by creating a transaction where by the total amount of the utxo is not spent.

4.By using multiple inputs with multiple wallets can add to privacy as this becomes harder to track

[Kelby_Rodriguez]

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

The amount of digital currency someone has left remaining after executing a cryptocurrency transaction such as bitcoin.

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

The wallet then will use a second, a third until the total is greater than or equal to the amount you are sending.

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

Inputs minus outputs

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

By having multiple wallets where you can send them.

[jott]

1. UTXOs are the coins you received as input to your wallet and did not yet spend / create an output for.

2. You can spend multiple inputs at the same time. The sum of all UTXOs has to be larger than your desired output + fees.

3. The fee is calculated by looking at the last transactions / blocks. It is chosen so you will get your transaction to the blockchain in a relatively short amount of time.

4. If you want to increase your privacy you could use new addresses for the “change”. Also you have to keep in mind that round sums (for example 0.5 BTC) are mostly seen as a transaction to your own wallet.

[kryptokrymmenos]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   Transactions sent to an address with the end balance.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   The transactions would be invalid and you would have to find another way to fill the transactions.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The wallet would check the blockchain and check previous or agreed upon fees.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Using a different address everytime when receiving a transaction.

[Fabrice]

@Darnell_Calhoun

The transaction fee is specified by input = output -fee

You need to provide a little more input than output to cover a transaction fee. So fee = input - output

[Fabrice]

@msdhillon5

2.Transaction will never go through and get confirmed

First, You can always try to combine multiple smaller utxo’s together to cover the amount