Transaction is a bunch of inputs and outputs. The blockchain stores all of the unspent transactions but it’s the wallet that makes the balance between all of the spent and unpsent transactions.
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The transaction doesn’t pass. It won’t be constructed, signed nor boradcasted.
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input minus output plus transaction fee
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Creating many transactions.
How wold creating many transactions help? 
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Thanks Fabrice for your answer! 
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Got it now, thanks for correction.
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Homework on Bitcoin Transactions and UTXO - Questions
1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXO's are simply put, your wallet balance
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If you had a collective amount of UTXO that would cover the txn then it would be ok. The amount needed plus the fee would be sent and the remaining amount would be sent back to you. If you did not have enough however it would be an invalid txn.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
It would suggest a fee based on previous recent fees on the blockchain. It would choose the minimum best option to get you on the chain.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can divert many portions of your balance to multiple addresses. If you want you can then send from all those addresses back to one address. No one knows it belongs to you, as you are the only one that has your key.
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Thanks a lot. 
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UTXO’s are basically the current balance of your wallet that your are able to spend.
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your wallet will calculate all the UTXO’s in your wallet, if you dont have enough after its calculated your balance, the transaction will be denied.
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it will propose a transaction fee that will get you in to the blockchain reasonably quick, based on recent history of other transactions your size.
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you could send funds to another wallet you control and spread out your funds for privacy and security.
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are the wallet balance that is available to be spent.
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What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
It will add the UTXOs up and give the available balance that can be spent.
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How would a bitcoin wallet specify the transaction fee when creating a transaction?
It is the difference of the Inputs minus Outputs.
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How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Transaction Inputs and Outputs are just addresses with an unspecified sender and receiver.
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What about when someone knows your address like an exchange where you did KYC?
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Describe what Unspent Transaction Outputs (UTXO) are. Is a received transaction that you can spend.
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What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? You can’t make the transaction until receive enough inputs to cover the transaction.
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How would a bitcoin wallet specify the transaction fee when creating a transaction? Input=Output+Fee
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How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? By using always different Outputs address, even if you want to make a transaction it would be convenient to use more than one output with different addresses, you would have higher fees but if the intention is privacy, it is worth it in some cases.
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Describe what Unspent Transaction Outputs (UTXO) are.
The transactions sent to an address before they are spent. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Multiples will be batched together to achieve the necessary amount or more. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Check the blockchain for the going rates. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Send money into different addresses.
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UTXO - unspent transaction output - is the sum of all inputs that haven`t been spent.
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The transaction will be rejected by the blockchain.
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The difference between inputs and outputs of a transaction.
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Use different wallets (addresses) for your transactions.
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- Transactions that you have received but not expent yet. All your UTXO’s is your balance.
- The transaction won’t be approved.
- Fee=imputs-outputs
- From one imput can be different outputs.
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UTXOs are outputs sent to an address you control that you have not used as inputs in another transaction yet. The sum of these is your total balance.
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you would have to use multiple UTXOs as inputs to cover the transaction and then the leftover amount from the inputs that did not go to the recipient you would send back to yourself.
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The wallet would specify the fee by simply having the total amount of the outputs being less than the inputs, It is than implied that the difference is the transaction fee.
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You could increase privacy by increasing the number of outputs. A majority of them could be going back to you and that would make it less apparent which output is actually going to a different person.
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You don’t have only one UTXO. The sum of all your UTXOs is your balance
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- Describe what Unspent Transaction Outputs (UTXO) are
They are the transactions that someone sent to a wallet that have not yet been spent.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet will add multiple UTXOs together to make it happen.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
The difference between all the Inputs minus the Outputs.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can take your inputs and send them to many outputs (some being yourself) and others being other parties.
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- Describe what Unspent Transaction Outputs (UTXO) are.output transactions that have yet to be used as an input transaction
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? your wallet will select a total >= the output +fee and return back to your wallet the difference
- How would a bitcoin wallet specify the transaction fee when creating a transaction? it will determine the best reasonable fee based on the previous block to ensure a balance of probability the block will go through at the lowest reasonable cost.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? scrambling your addresses because transactions can have multiple transactions mixed so technically blockexporer guesses which ones came back to the sender.
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1.) Describe what Unspent Transaction Outputs (UTXO) are. UTXOs are the balance that your wallet keeps track of.
2.) What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? You can use multiple UTXOs to cover a transaction not just one. However if there’s stll not enough the transaction will be canceled.
3.) How would a bitcoin wallet specify the transaction fee when creating a transaction? Your wallet can figure out what the fee will be for a transaction. The Fee=Input-Output
4.) How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? You can make/use different addresses when receiving transactions.
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· Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are spendable funds in your wallet. There are no coins - there are only UTXOs. When an UTXO gets spent it becomes an Input in the next transaction. The sum of all UTXOs in your wallet is your wallet balance.
· What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet can sum up several UTXOs but if the sum still is not large enough the transaction will be denied.
· How would a bitcoin wallet specify the transaction fee when creating a transaction?
It will check the blockchain for previous transactions and the applied fees.
· How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
When committing a transaction the rule is that all UTXOs have to be spent. So you could send the change of the transaction, or better the left over amount of UTXO to another address of yours. So noone will know if you sent it to yourself or someone else.
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