Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#2940
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Unspent Transaction Outputs are the transactions that have credited money to my address and are available to be spent

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

In that case, the wallet will create the transaction using 2 or more UTXOs that when added together, are bigger than the transaction plus the transaction fee.

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

The bitcoin wallet will specify the transaction fee as the residue of substrating the UTXOs-Transaction=Transaction fee

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

I believe that having the change (UTXOs-Transaction amount-fee) returned back to me as a new UTXO creates a scrambling of the data that improves privacy.

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#2941

  1. It is the balance on your wallet, calculated as the unspent transaction output from the input of the transactions that had the wallet as the receiver of those transactions.

  2. Transaction would not be valid.

  3. Input - output

  4. By generating new bitcoin addresses as the receiver of the uxtos.

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#2942

The sum of all UTXOs is the balance.

A wallet will combine UTXOs to pay the transaction. If you still don’t have enough the transaction will be declined.

You don’t have to create multiple transactions. You can send the remaining change back to yourself to a new address you own and from the tx it won’t be possible to know which output was used to pay the service and which to send back the change. :slight_smile:

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#2943

1 its an output which is not yet confirmed by the receiver
2 i think the transaction will be impossible
3 through the total input minus the total output
4 use more inputs and outputs at one tx???

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#2944
  • Describe what Unspent Transaction Outputs (UTXO) are.

UTXO’s are represented as transaction (output) that is being sent from one wallet to another later becoming the input for the receiver when the transaction is confirmed.

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

It will pool inputs together that are equal or greater than the transaction, sending the correct amount to cover the transaction and sending the remainder back to the senders wallet.

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

Input(UTXO) - output (UTXO) = Fee

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

create transactions with multiple inputs and outputs of UTXO’s to obscure the linkage of accounts.

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#2945

Outputs back to a new address you own because it makes it difficult to know what part was sent to the merchant and what part went back to you. :slight_smile:

#2946

yes, that makes sense, thank you.

#2947

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are the inputs sent to your wallet that have not been spent.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple UTXOs would be combined to cover the correct amount and the remainder sent back to your wallet. If you did not have multiple UTXOs to combine, the transaction would fail.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It will be implied or within a range and calculated from the remainder of UTXOs once the transaction is completed and the remainder is sent back.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    They will be grouped in a block. The blockchain does not reveal the private keys. As a sender, you can send to multiple addresses with one transaction which will not show how much went to who or where.

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#2948

  1. UTXO is the output of a transaction that exist in blockchain and the wallet user that owns it, is able to spent later in an other transaction.

  2. I will use as many utxos as needed as inputs in order to make a larger output otherwise the transaction will be invalid

  3. There are some wallets in which we choose the fee , bat most wallets choose for us.They look at the previous fees in the blockchain and they propose as the fee that will make our transaction faster

  4. By using a wallet that allow you to create new output address

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#2949

  1. The collection of all the total inputs sent to your wallet.

  2. It doesnt matter as long as I have other UTXOS that maches thee amount of the output

  3. Some of them will propose you the fee, some of them will let you choose.

4.By using different adresses you can distotioned the total input of your overall BTC in your wallet.

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#2950

  1. UTXOs’ is the remaining amount of cryptocurrencies that you have left after you have made a transaction.

  2. Your transaction will be declined.

  3. By subtracting the output from the input

4.by using a different wallet address for the remaing out btc after the transaction has been dealt with.

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#2951

  1. UTXOs are unspent outputs of the previous transactions.

  2. The transaction would be declined if your balance cannot cover the fee, this would be seen as invalid.

  3. The wallet will communicate with the blockchain, depending on how fast you set the transaction to go through this will be calculated automatically from the remainder of all inputs minus the outputs of a transaction.

  4. Using different wallet addresses to receive multiple transactions. But quite hard today as platforms such as block explorer can track all transactions once identified, unless using a privacy coin which prove more challenging.

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#2952

  • Describe what Unspent Transaction Outputs (UTXO) are.
    A) Total wallet balance.

  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    A) The transaction will be rejected by the nodes.

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A) subtracting the input from the output = fee.

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    A) By using multiple wallet address. This will increase privacy.

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#2953

1- UXTO input , Balance in your wallet.
2- [a] cant do transaction if only input, [b] calculates two inputs above required amount executes transaction sends remaining amount back less fee
3- the wallet will check for previous fee amounts and arrive at a suggested fee amount at reasonable time efficiency, a calculation from the remaining of all inputs minus the output of a transaction
4- Different address for each receiving transaction, makes tracking difficult as several outputs can be addresses of yours and nodody would be aware.

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#2954

The sum of all your UTXOs is the balance.

You can combine multiple UTXOs to cover a tx, if its still not enough, the tx will be declined. :slight_smile:

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#2955

Homework on Bitcoin Transactions and UTXO - Questions

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

It is the remaining amount after a transaction was executed

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

Single UTXO’s don’t count. The total amount of UTXO’s is calculated before a transaction is executed. The total amount of Inputs needs to equal the outputs. If this is not the case, the transaction will not be executed.

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

The Wallet normally establishes the transaction fee. The fee is calculated out of the difference between Input and output. The fee might be suggested by the wallet but in some wallets the owner have the ability to set the fee.

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

By creating different addresses for each transaction.

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#2956
  1. UTXOs are a count of the remaining balance from a previous transaction. This can be a wallet balance.
  2. The transaction would be rejected/invalid.
  3. fees=output-input
  4. Multiple inputs and outputs can be used to increase privacy of a transaction. Multiple addresses can be used to send or receive a transaction.
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#2957

  1. UTXO’s are all BTC that you receive and is not spent. Once you receive BTC from someone it will remain as a UTXO until you put it in a transaction and spend it.

  2. The wallet will sum up all other UTXO’s you have available and if you have enough you will send however much you need to and the rest would go back to yourself, + fees of course. If you don’t have enough, the transaction will simply be rejected.

  3. Your wallet subtracts your inputs and outputs to get the transaction fee. Therefore your outputs must be lower than the inputs by for example sending less to yourself. This means that the fee is not exactly specified but rather implied.

4.Use different inputs and outputs in your transactions.

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#2958

Describe what Unspent Transaction Outputs (UTXO) are.
UTXO are inputs to transactions that can be spent

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet would try to use additional UTXOs to cover the transaction. If the additional UTXOs are insufficient then the transaction will not be executed

How would a bitcoin wallet specify the transaction fee when creating a transaction?
Input - Output = transaction fee

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can use different addresses in the wallet for receiving transactions

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#2959

  1. The amount of digital currency someone has available to spend after a cryptocurrency transaction has been made. A balance of a wallet is all the UTXOs added together.

  2. You would have to use more than one UTXOs and the leftover would be sent to you through a change address.

  3. A transaction fee is the difference between input and output. Transaction fee is usually calculated by the wallet based on the previous fees on the blockchain. Wallet suggests a fee that will get us into the blockchain faster.

  4. You can have one input and more than one outputs in a transaction, and then send part of the funds to yourself through a different address.

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