Homework on Bitcoin Transactions and UTXO - Questions

[PapatoniC]

Thats true Alko thanks for clarifying!

[horn]

1. They are outputs (other transactions) that you have received, and can spend.

2. If the sum total of UTXO’s is equal or greater than the sum total of your transaction, it will be approved. If it is less than it will be rejected.

3. Fee= Input- output

4. Make use of different addresses when you want to receive something.

[WatchMan79]

1. A transactions where the input represents where you got the money from and the output is the receiving of the money.

2. The transaction will not be confirmed

3. The difference between the output and input is the transaction fee.

4. Multiple inputs and outputs

[Wanda]

1. Unspent Transaction Outputs (UTXOs) are inputs you received that you have not sent yet. If you received 1 BTC from somewhere and haven’t sent it anywhere (it is still in your wallet) that is a UTXO.
2. If you do not have any UTXO that is large is enough to cover for your transaction, either the transaction simply would not be constructed by your wallet, or if it constructed it would not be confirmed because the nodes will deny it.
3. A bitcoin wallet specifies transaction fees by looking at recent previous fees.
4. Since all UTXOs must be spent in a transaction, simply by sending parts of the UTXO it will be difficult for someone looking at the transaction to know which part of the transaction was sent back to myself or which part of it was sent somewhere else.

[MattL]

1. These are the transaction left unspent in your wallet
2. Transaction would be declined
3. It’s the difference between inputs and outputs
4. Use multiple addresses

[Elena.S]

1. A UTXO is equal to the amount of BTC you can spend. It is the sum of all of the BTC you’ve received through unspent transactions.
2. You would not be able to finish the transaction.
3. It would calculate the amount left after you do the transaction. That would be the fee.
4. One person could own multiple addresses making the blockchain explorer unable to know if they are sending money back to themselves. If you want more privacy own multiple addresses.

[Emanuila]

Describe what Unspent Transaction Outputs (UTXO) are.

• For a transaction to happen in the blockchain, it needs at least one input and one output. When someone sends you money, you will have the UTXOs from them and this information will be stored on the blockchain. The UTXO will be the output of a particular transaction before it’s send to someone else in the blockchain.

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

• Nothing. No transaction is going to happen.

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

• Transaction Fee = Input - Output

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

• Several outputs and addresses can result from one input. There is no way for the outside users to know to whom the addresses from the transaction belong to. They can all belong to one user or several.

[Alko89]

@WatchMan79

A transactions where the input represents where you got the money from and the output is the receiving of the money.

True what inputs and outputs are. UTXOs though are the outputs that have not been spent yet.

[Alko89]

@Wanda

Unspent Transaction Outputs (UTXOs) are inputs

You mean outputs?

@Wanda

Since all UTXOs must be spent in a transaction

You don’t need to spend all UTXOs every time, just as much as you need to send a tx. The remainder of those UTXOs you picked can be sent back to another address you own.

[Alko89]

@Elena.S

A UTXO is equal to the amount of BTC you can spend

The sum of all UTXOs is the balance you have in a wallet.

[philibiza]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXO are unspent outputs from previous transactions.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   The wallet will use your next UTXO to sum up the requested amount.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   Most wallets recommend a reasonable fee by checking previous transactions on the blockchain.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   You can send the output to different addresses.

[George]

1. UTXOs are transaction outputs from previous transactions that you can use(spend) as transaction inputs for next transactions.
2. If there is no single UTXO large enough to cover the transaction, other UTXOs will be added as inputs until the spendable amount and transaction fee is covered, the surplus is sent back as UTXO to the sending wallet/address.
3. A bitcoin wallet specifies the transaction fee when creating a transaction by picking the fee it thinks it’s best for the transaction to get on the blockchain in timely manner.
4. Transaction inputs and outputs can be used to increase privacy in transaction by using an input in a transaction that has one or more outputs that sends funds to a wallet controlled by the same person who makes the transaction. In other words, you can send funds to yourself without this fact being evident in the transaction.

[GBW]

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

   UTXO’s are basically transactions that you have received, so inputs for you, but outputs from a different address, that have not yet been spent by you.

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

   If you have mulitple UTXO then it would combine them to be able to cover the transaction, and the change or leftover UTXO would be sent to an address controlled by you, so you receive a new UTXO.

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

   The transaction fee will equal input minus output amount.

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

   By sending UTXO’s to addresses that are controlled by yourself would increase privacy.

[Pattylion]

1)UTXO : an unspent transaction output is an abstraction of electronic money
2) The wallet will calculate if is a enough balance to cover the transaction and if is not sufficient UTXO THE TRANSACTION will be invalid
3)The difference between the INPUT and the OUTPUTS ,the wallet will calculate the fee.
4)Notion of transaction can be used by sending smallest transactions to different addresses,the sender of a transaction can be narrowed down to ,and which measures the effectiveness of a protocol at obscuring linkages between address.

[Alko89]

@Pattylion

Notion of transaction can be used by sending smallest transactions to different addresses,the sender of a transaction can be narrowed down to ,and which measures the effectiveness of a protocol at obscuring linkages between address.

You don’t need to create many small txs. You can use a new address every time you receive funds and also a new address when you receive change back from a created tx.

[kirstentait]

• Describe what Unspent Transaction Outputs (UTXO) are.
  UTXOs are a collection of transactions of Bitcoin that you have already received from other people to your address and that you are entitled to spend.

• What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  In this case ,your wallet would look for another UTXO to combine together so that you would have enough to spend. If you don’t have another TX to combine with it, your wallet would not let you spend that much.

• How would a bitcoin wallet specify the transaction fee when creating a transaction?
  The fee is specified by the output minus the input and usually your wallet will select a good fee that will get your transaction through the blockchain in good time.

• How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  When there is BTC left over from a transaction (because you have to spend all of a previous OTXO), the “change” is sent back to you. In order to hide how much you are spending/receiving back, you can use multiple addresses that you have control over. This way, no one knows whether you are receiving it back, or paying someone else.

[Dutch]

@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’s are the funds in your wallet that are not (yet) allocated to a new transaction.
2. The transaction would be rejected because you can not spend what yo don’t have.
3. It would be the difference between total input and total output, which is the transaction (or miners) fee.
4. You could use different input and output addresses so it is extra difficult to trace it back to one owner/entity.

[JuanitoPecados]

1/ The UTXO are the outputs that you have received from other addresses, it could be seen as your balance, since there are no currencies in bitcoin

2/ you can use more than one until it is enough

3/It does them by subtracting the input - output

4/ the BC is already private, but if you want to increase it even more you can put several putputs to different addresses of yours

[Cap_D]

Thanks for clarifying Alko89

[Kerron_Lewis]

1. A UTXO is a previously received input, that has not yet been spent.
2. Then more than one UTXO will be combined to cover the transaction.
3. Checks the blockchain and based on analysis, suggest a fee amount that will get your transaction completed within a reasonable time.
4. Use other bitcoin addresses that you control, to send outputs to, making it difficult for readers of a block explorer to know how many UTXOs you have control over, or to know your balance.