But mainly by using multiple outputs
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Yes, this is for a wallet giving you an estimation. But technically, fee = your tx inputs - your tx outputs
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Ah okay, so the excess of my output will be automatically interpreted as the fee which miners can ‘pick up’?
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are outputs from previous transactions in time that have yet to be spent (or used as inputs in another transaction). They are essentially dormant funds (until spent).
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet you use will combine UTXOs until the value meets or exceeds the desired transaction amount plus fees.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
The transaction fee is specified based on leftover inputs after the outputs are taken. Inputs are equal to the outputs plus the fees. Fees are determined based on network usage.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
The more outputs there are in a transaction, the more difficult it is for a malicious actor to determine where the funds are actually going. Privacy is increased because as number of outputs increases, the lower the chance a malicious actor can correctly guess which person owns what.
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UTXOs are the balance unspent inside your wallet. They are used to generate future transactions and and become input in the new transaction.
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If you don’t have a single UTXO large enough then your wallets combines all UTXOs to cover the transaction cost and then returns the difference back to your address.
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The fee is calculated by the wallet and is the difference between the output and the balance needed in the transaction.
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One wallet can hold many different addresses that can be used to send and receive outputs from any transaction. You can use a different input address.
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UTXO are cryptos in your wallet that came from a previous transaction and are ready for you to spend.
If you do not have enough UTXO in a transaction, the transaction would not go through.
A bitcoin wallet specifies a transaction fee by taking the inputs and subtracting them from the outputs. The remaining balance is the amount you pay in transaction fees. They take this from the previous transaction on the block and recommend a suitable fee in order for the transaction to get picked up quickly and efficiently on the blockchain.
Privacy is increased by creating more and new output transactions or use a privacy coin.
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If you construct a transaction, you choose some utxo’s as inputs with specific values and some outputs where the bitcoin has Togo. You always need to have a little bit more input than output and this will be the fee for the miner. But most wallets makes you this easy by just let you set a fee, and your Wallet will automatically take care of the amount of Inputs you need, and send the change back to one of your addresses in the output.
If you lookup a tx on blockexplorer, you will see that the sum of the inputs are always a tiny bit more Bitcoin than the sum of the outputs.
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- UTXOs are transactions that have been sent to your wallet, which you did not sent anywhere else yet. This is basically the amount you can spend. Wallets can add all the UTXOs of your address to calculate your balance. Whenever UTXOs are send, they are no longer UTXO’s.
- Your wallet will construct a transaction using multiple UTXOs. If you don’t have enough to pay at all, the transaction will be denied.
- The difference between input and output will show the fee that has been used. This can be found by looking at the blockchain.
- Use many different inputs and many different outputs. This will make it harder to trace everything back to you.
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- UTXO’s are unspent transactions and they what is recorded on the blockchain. UTXO’s are what is recorded on the block chain to determine what is available in your wallet to spend.
- Your transaction would then tap into other UTXO’s you have previously had sent to you and determine from that the remainder to send plus transaction fee and would send the remainder back to you (if there is one)
- It usually references the blockchain to determine a fee (at that time) that would allow a miner to accept that transaction and write it to the blockchain. The fee varies based on current transactions happening on the blockchain
- You could make sure you are never sending full transactions that match UTXO’s exactly to ensure multiple transaction id’s are used as you could send portions back to your own wallet if they unspent. Its impossible to know when there are more and more output transactions being used.
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- UTXO’s is the database of bitcoin you have received from transactions on the block chain.
- Your wallet will read all your other UTOs and send more than one UTXO to another address of yours to cover the transaction. You will receive the difference/remainder sent back to you so you send the correct amount. Please correct me if I am wrong here.
- Input=Output +transaction fee. The fee is not specified because it is calculated from this formula as the difference between the input and output.
- Increasing the number transaction inputs and output will show more addresses on the block chain and increase the privacy from senders and receivers.
But many wallets will give you an estimation for fee based on how busy the mempool is
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Thank you fee=input-output.
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- Describe what Unspent Transaction Outputs (UTXO) are.
A UTXO is a received transaction in a wallet that has not been spend.
The sum of the UTXO’s is equal to the credit in the wallet. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction will be declined. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet subtracts the output from the input. - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can multiply the transactions by sending UTXO’s to several addresses that are controlled by the same recipient.
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You can do this in one transaction 
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are all the transfers / funds that have been previously sent to your private address and have not subsequently been sent to another address. The total amount of UTXOs in your wallet is effectively your ‘bank balance’ - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The appropriate transaction amount will be calculated using multiple UTXOs. If the value of all UTXOs in your wallet is not enough to cover the transaction it will be rejected. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
The fee is calculated by subtracting the output from the input - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can setup multiple addresses and also send to multiple addresses. For example a transaction could be split into multiple smaller transactions targeting different addresses (even an address that belongs to you)
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This is actually one transaction with multiple outputs (and possibly multiple inputs if you use multiple UTXOs)
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- Describe what Unspent Transaction Outputs (UTXO) are.
Transactions you have received and can be spend. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Transaction will not be valid and send by the wallet on the first place, not accepted by the miners in a second stage. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
Fee = input - output - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Make use of different addresses when you want to receive something.
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- Describe what Unspent Transaction Outputs (UTXO) are.
They are all transactions / funds that have been sent to your private address and haven’t been sent to another address. The sum of all the UTXOs are your address balance
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Spending does not take place using a single data byte. Instead, multiple fractions of bitcoin are retrieved by the algorithm to fulfill a spending request.
For example, a purchase worth 1 bitcoin may retrieve 0.6 BTC from one byte and 0.4 BTC from another.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
The transaction fee is calculated by subtracting the output from the input
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By utilizing multiple inputs with multiple wallets where you can send the outputs
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There are no coins. All that is contained in your wallet are UTXO’s. They tell you how much has come in to that wallet, and that can be sent to other addresses.
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It would take the sum of several UTXO’s, and then spend the amount needed, and return the “change” back in the same tx.
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The wallet would look at an earlier transaction fee that has happened on the block, and calculated based on the information that it received from there.
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No one knows how much bitcoin has been spent if you sent money back to yourself (through another address) as well.
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UTXO’s are the unspent outputs that show the balance available for use.
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Transaction will be denied.
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The wallet will specify the transaction fee by taking the total of the inputs and subtract the total of the outputs. The fee is determined automatically where the system attempts to calculate an optimal fee for the speed of the transaction. The fee is automatically deducted from the output. Input=Output + Fee.
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You could send UTXO’s to different addresses or wallets, splitting them up in a single transaction, it would be impossible to know who controlled the UTXO at the new address.
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