Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#2537
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Unspent Transaction Output
    Transaction Outputs from another wallet to a receiving wallet that the receiver has yet to transact.
    2.What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    a) If you only have a single UTXO that is not large enough for the specific transaction then:
    of course, you will not be able to make the transaction happen unless you have obtained enough for the transaction and the transaction fee.
    b) otherwise; you will have to combine inputs to total more than what you need for the transaction so you can make the transaction while allotting for the amt of the transaction fee.
  2. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    ⦁ The transaction fee is the amount left when the total of the outputs is deducted from the total of the inputs.

4.How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Privacy can be increased by the change address in the output of a transaction being different to the address of the inputs. This way someone looking at the transaction cannot tell how much was spent by the origin address.

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#2538

ah got it, thank you @Alko89

#2539

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Balance available in your wallet to spend from received transactions
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    By combining other utxos to have enough to cover the transaction and sending the remaining balance to yourself.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The wallet will check the previous fees on the blockchain and pick the best fee. The fee is calculating the difference between the inputs and the outputs. Inputs – Outputs = fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? By creating more output addresses
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#2540
  1. UTXOs are unspent amount of bitcoin that is left after transaction is executed;
  2. Wallet will combine multiple inputs and change will be sent back to you;
  3. It won’t specify it. It will be calculated and it is all inputs deducted by all outputs;
  4. you could use different addresses for each receiving transaction.
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#2541
  1. A UTXO is bitcoin you have available to spend.
  2. If you dont have a single UTXO that is large enough to cover your transaction, your wallet will attempt to use all UTXO’s available, f there is still not enough the transaction will be declined.
  3. A bitcoin wallet transaction fee is calculated by the wallet.
  4. Transaction inputs and outputs do not have personal information attached to them and this provides privacy.
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#2542

1.UTXO are as the name implies they are unspent coins that your wallet track of.
2. If you don’t have any single UTXO that is large enough to cover for your transaction then your wallet can’t construct a transaction.
3.since the wallet can read the blockchain by looking up on the previous fees and choice one that can be selected fast by the miners.
4. By using different address.

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#2543
  • Describe what Unspent Transaction Outputs (UTXO) are: Transactions you’ve received and you can use in sum for future spending.
  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Wallet will send next available total of remaining UTXOs and once covered will execute transaction
  • How would a bitcoin wallet specify the transaction fee when creating a transaction? Fees are not directly stated. Fees will be based on total output - input and will be retained as fee.
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? You can move your own bticoin even to same wallet and will generate a different address with different transaction amount or same, therefore increasing privacy as any address cannot identify current or different owner.
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#2544

What about when you withdraw to your address from an exchange where you did KYC? :slight_smile:

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#2545

1.UTXOs are unspent transactions from previous output transactions on the blockchain.
2.The transaction would not be processed.
3.The fee is the remainder of all inputs minus the outputs of a transaction.
4.Use multiple different addresses. Translation …use multiple hardware wallets to protect your bank of one.

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#2546

1 UTXO are outputs from other transactions that are addressed to you
2 The transaction will not take place and be declined
3 A transaction fee is the sum of the value of the inputes minus the sum of the outputs
4 By generating more outputs and in such a way to be hard to correlate a specific output back to the same address

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#2547

You can just use multiple addresses in the same wallet. A hardware wallet is also HD (hierarchical deterministic) which means you can also derive multiple accounts of which all will have their own addresses. :slight_smile:

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#2548

1.) UTXOs are basically what is used to calculate you’re so called balance. Essentially currency that you have been sent that hasn’t been spent.

2.) If you don’t have any UTXO large enough to cover a transaction then your wallet will calculate the sum of your total transactions to equal the amount needed or not allow the transaction to take place at all if not enough UTXOs are detected.

3.) A wallet specifies a transaction fee by calculating an amount that should be accepted by a miner within a reasonable amount of time. Input should be equal to output plus fee giving the total of the transaction. The fee can sometimes be manually adjusted or increased to ensure a faster processing time. Usuallythe higher the fee is the faster it will be accepted.

4.) Transaction input / output can increase transaction privacy by making it nearly impossible to see who it was sent to specifically. You can send a transaction to someone else or even yourself without being associated them being associated.

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#2549

  1. UTXO are unspend transaction outputs from other wallets that are transmitted as input to your wallet. The sum of your UTXO’s = your wallet balance.

  2. All UTXO’s that are transmitted to your wallet will sum up until you have enough for the transaction, if you don’t you cannot transmit the transaction and uit will be declined.

  3. Depends on how you specify the amount that you want to spend on a transaction. But the max amount of fee that you can specify = input - output.

  4. You can create multiple inputs and outputs for a transaction, send a portion to the real receiver and a portion back to your own addresses.

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#2550
  1. UTXOs are the transactions that you’ve previously received that are available for you to spend. The sum of them represent your bitcoin balance.
  2. You would either bundle the UTXO with others in order to cover the transaction or, in the event you simply don’t have enough funds, the transaction would not go through.
  3. The bitcoin wallet typically queries the blockchain to understand the fee that is most likely to get your transaction picked up by a miner.
  4. You can even include yourself in the transaction at another address so people can’t fully understand where funds are being spent.
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#2551

1. Describe what Unspent Transaction Outputs (UTXO) are.
Unspent Transaction Outputs (UTXO) are change from a previous transaction that have not been spent and ready for you to spend. The total UTXO is the wallet balance.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet will use additional UTXO’s until the input is large enough to cover the transaction. If the amount of the combined UTXOs is larger than the amount of transaction, the remaining will be sent back to you to another wallet address

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
It subtracts the output from the input to get the transaction fee.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Use multiple output addresses to make it more difficult to track and since addresses are not linked to an identity. From outside it is impossible to determine which transaction went back to you.

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#2552

  1. UTXO’s are money that has been unspent or leftover that is in your wallet from a prior transaction

  2. It would not be valid or confirmed or it would require to use another UTXO to cover it.

  3. It’s the difference between the outputs from the inputs

  4. Having multiple outputs and increase them so that it’s harder to track the transactions

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#2553
  1. It’s the unspent transaction that is associated to a wallet
  2. The transaction would be rejected
  3. It would calculate the proper fee to be processed fast enough.
  4. You can use always a new address to receive a new output
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#2554
  • Describe what Unspent Transaction Outputs (UTXO) are.

–UTXOs are unspent transaction outputs. An input is sent to a recipient and that transaction remains unspent until the recipient spends the funds received.

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

–The transaction will be not go through because you simply do not have the funds to made said transaction.

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

–The implied fee is the difference between the input and the output. The wallet will apply a fee that will get your transaction to the network at a fast enough rate.

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

–By using many input and output addresses, it is impossible to decode the addresses from the visible standpoint. By sending outputs using multiple addresses it increases the privacy ten fold based on the anonymity constructed by the blockchain.

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#2555

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are outputs that have been sent to a blockchain address in a wallet which have not been spent yet.

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The bitcoin wallet will analyse the blockchain transaction fees and then propose a fee that would get the transaction into the blockchain in a reasonable time.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can use different output addresses and send to yourself using different addresses that are yours combined with other transactions that you need to send to other people.

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#2556

Describe what Unspent Transaction Outputs (UTXO) are.

Are transactions received on a public address that are link to a private key that a wallet holds and havent been spent or sent to another address.

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

Similar to what we do in a material world fiat paper notes, if we dont have enough we need to send a higher amount in the transaction and get some change back.

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

A wallet estimates the fee cost by looking at most recent fee spent and choose a median price that will get the transaction through quickly enough. On some wallets you can speed up and spend more or reduce/more slowly.

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

by not knowing if the same person that starts the transaction is the owner of the output address.

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