Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#2517
  1. UTXO are the balance left in your wallet that it keeps track of.
  2. The transaction would be declined if your UTXO is not large enough to cover it.
  3. The wallet checks the blockchain and figures out the correct fee.
  4. Several addresses and outputs can result from one input.
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#2518

What if you have multiple UTXOs? :slight_smile:

#2519

Homework on Bitcoin Transactions and UTXO - Questions

Describe what Unspent Transaction Outputs (UTXO) are.

UTXO is the transaction that you have received as an input and its not spent yet and your wallet track it all the time.

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

Its exactly like you don’t have enough money in your pocket to spend and ask an item from a seller who is going to deny and cancel your

purchase.practically the wallet send the transaction to other nodes and none of the nodes would verify the transaction.

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

Each exchange charges different fees but in general the wallet calculate the fees by figuring out the difference between output and inputs.

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

By having extra output addressess.
:grinning:

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#2520
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • UTXO means the input transaction which is not yet spend , the total of the UTXO is your wallet balance.

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 transaction value minus output transaction value .

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

  • first you creat a transaction send it from your wallet address to you newly created a address and so and so , using different address each time.
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#2521

Homework on Bitcoin Transactions and UTXO - Questions

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

Unspent Transaction Outputs, are the result of previous transactions, how much has moved and to where.

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

The transaction would not be able to move ahead, the sum of the outputs can not exceed the sum of the available input UTXOs.

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

The fee is calculated by the wallet. But it is normally the sum of input UTXOs minus the sum of the output = fees.

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

If there was a way of hiding the amount sent and received but still had the addresses involved in the transaction ?

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#2522

  1. UTXOs are Bitcoin that you’ve received but haven’t spent (sent) yet.

  2. If you don’t have any single UTXO that is large enough to cover for your transaction, your wallet would take from another UTXO to meet the necessary amount needed.

  3. A Bitcoin wallet specifies the transaction fee when creating a transaction by subtracting the input from the output. You can also set a manual transaction fee set the speed of your transaction (higher fee = faster transaction, lower fee = slower transaction)

  4. You could use the notion of inputs and outputs to increase transaction privacy by including multiple outputs in your transaction ?

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#2523

You can just use a new address each time you receive funds from others and a new address to send change back to you when you send to someone. You don’t need to create unnecessary txs :slight_smile:

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#2524

Not the amount, but as long as no one knows the address is yours you keep your privacy :wink:

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#2525

thank you for the correction sir , i have a question , if every time i receive the transaction on my btc wallet the address changes it self then what happens of the old btc address in which i have received money in past that belong to my private key ? what if someone send me money on my year old bitcoin address that once belong to me ?

#2526

they create together bitcoin balance available to be spend

if there is only one UTXO,transaction will not pass through verification and will not be alloved … if there are more UTXOs, than wallet will collect them together to look for the needed amount

recommendation on base of latest fees paid

have more addresses perhaps, … or move bitcoin to private chain:)

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#2527

If you still control the private key (which you probably do unless this is an exchange address) you are able to spend the funds even on an old address. :slight_smile:

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#2528
  1. Describe what Unspent Transaction Outputs (UTXO) are.

They are the transactions that are left unspent after someone completes a transaction as an input.

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

The node will discard the transaction and it will not send it to other nodes. Miners will never get it for it to be validated into a block.

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

It is the sum of all inputs minus the sum of all outputs. It will be calculated by the wallet.

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

Generating always a new address to where the remaining money unspent will go back, and using more than one output in every transaction.

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#2529

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are outputs from your transactions that have not been selected as inputs by the wallet that received them.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    It will aggregate all the UTXOs in the transaction and create a new UTXO large enough to cover that transaction and change will be sent back to the wallet as another UTXO

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Total inputs=Total outputs+Miner Fees. It will make sure the sum of all the inputs are equal to the UTXOs + Miner fees by subtracting the total Outputs from the Inputs. Your wallet will also query the blockchain to find out what was the last accepted fees on the network and it will automatically give you the going fees. Some wallets allow you to set your own fees.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By creating multiple UTXO to many different wallets you control.

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#2530

Thanks man, I’ve been struggling with this sending of the UXTO’s , miners taking their fees and the remaining UXTO’s back to the original private key. This makes much more sense and clears up what a half dozen articles glossed over. Much appreciated brother!

#2531
  1. Amount of currency remaining after the crypto transaction is executed.
    2.The transaction wouldn’t go through’
  2. via the difference between the input and output
  3. Address mixer, fracture the inputs and mix them among other inputs on the network with only the address connecting it to the recipient wallet. Stealth addresses.
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#2532
  1. Outcomes of historical transactions to a wallet that is not yet spent.
  2. The transaction won’t be made.
  3. The fee proposal is based on previous blockchain transactions and an average for the fastest transaction. The actual fee would be seen as the difference between the output and input.
  4. By using multiple wallet adressess .
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#2533

You can just use multiple addresses inside one wallet :slight_smile:

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#2534
  1. UTXOs are abstraction of electronic money.
  2. If you don´t have any single UTXO that is large enough to cover your TX, the TX wouldn´t be accepted.
  3. A BTC wallet specify a TX fee creating a TX by the size of your TX in bytes. / input - output = fee
  4. To increase privacy in your TX you use different addresses to receive BTC.
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#2535

  1. UTXOs are unspent transactions, so it is what you have in wallet.

  2. The UTXOs would group together and check if you have enough to cover the expenses if you do not it will be invalid, if you do it will send the amount then you can send the rest back to yourself.

  3. The blockchain network will calculate a fee based on previous transactions then add it to the output.

  4. You could have multiple outputs going to different places.

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#2536

UTXOs are unspent transaction outputs, unspent balance held in your wallet.

The wallet will determine which UTXOs to combine to complete the transaction. You may receive “change” for unspent transactions.

The fees are determined by the wallet based on activity in the blockchain. The amount that miners are most likely to accept for the transaction.

It is possible to increase privacy of transactions on the blockchain by creating multiple inputs and outputs of various amounts.

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