Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#2960
  • Describe what Unspent Transaction Outputs (UTXO) are.
    are unspent outputs from the previous transaction. basically the balance on the wallet that you can spend.
  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    the transaction wouldn’t be proceeded
  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    on some wallet its possible to specify the transaction fee, but on the most wallets the wallet would recommend the fee based on the previous transactions, or would calculate the fee from outputs.
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    by using more addresses for outputs. its impossible to track which output went where
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#2961
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Answer: Sum of 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?
    Answer : it will take the sum of your UTXO’s and send the remainder - fee back to your wallet as UTXO
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Answer: UTXO minus UTXO input = fee or percentage of amount as fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Answer: private blockchain
  5. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    transaction output - input = fee or transaction fee can be percentage of amount in the transaction
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#2962

  1. Utxos are unspent transactions that you have received from previous transactions. Basically your balance of currency.

  2. If you don’t have a single UTXO large enough to cover a single transaction but you have multiple UTXO’s that can you will need to send them all together and receive “change”. You will need to send the amount needed and then send whatever is left over back to yourself using another one of your addresses. Also calculating for the fee of the transaction.

  3. The fee of your transaction is your inputs minus the outputs.

  4. If you send your bitcoin to multiple addresses you don’t necessarily know what amount of the complete transaction has been spent or sent back to the original owner.

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#2963
  1. Unspent Transaction Outputs (UTXO) are the outputs of a previous transaction which were not spent at the current time.
  2. You have to use another or several other UTXO’s to cover the transaction. The remaining amount has to be sent to your own wallet. If you have not enough to cover in total, the transaction is invalid
  3. A wallet is simply calculating the input - output = transaction fee
  4. By sending the output to a different address or wallet
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#2964
  1. UTXOs are basically all the coins we can spent. Since wallets don’t store any coins, just private keys, UTXOs are like a list of previous transactions through which we received certain amount of coins. Until we spend those coins in another transaction. Then they becomes UTXO of that recipient.
  2. If one UTXO isn’t enough for one transaction we have to use more of them until it is enough. All of those will then be inputs in that one transaction and the output will contain certain amount that is going to the payment we want to make, small part will be taken as a fee that goes to miners, and the rest will come back to us.
  3. The fee is choosen based on the previous fees in the blockchain. Since the input and the output have to be the same, output plus fee always gives as the input amount.
  4. Send certain amounts back and forth to ourselves using different wallets.
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#2965
  1. Unspent transaction outputs are any inputs that have been received into a wallet that have not yet been transferred out of that wallet.
  2. If you do not have any single UTXO that is large enough to cover a transaction then the wallet will compile multiple UTXO’s up to the amount that is needed or the transaction will rejected by the network.
  3. The wallet will check the network on how much transactions are costing and will choose a fee that will allow your Bitcoin to be moved reasonably quickly. Though in some wallets you can specify the speed/cost for the transaction.
  4. By using a different address/public key for each transaction received, it will be more difficult to track and therefore increases privacy.
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#2966

  1. Each transactions on the Bitcoin network are really just inputs & outputs. Inputs are outputs from a previous transaction. When you spend your Bitcoin from your wallet, the spent amount will be transacted, and your remaining balance will be returned to you as an UTXO. Blockchain will then give your wallet a list of transaction outputs. Your wallet then give you the sum of these unspent outputs as your balance. Bitcoin technically has no coins nor balance, it is just an accumulation of UTXOs.

  2. If you do not have large enough UTXO to cover your transaction, your transaction will simply fail. Miners will always choose a transaction with the highest fees

  3. Transaction fees = Input - Output

  4. The blockchain will give your wallet a list of transaction outputs, and your wallet will add it all up to give your full balance. When you spend your balance, it is impossible to tell from the outside whether the output was sent back to the sender or to other people. Consequently, increasing the volume of transactions will make it harder to backtrack, thus increase privacy

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#2967

yep.

Alko, i did the beginners course and BTC101 + Ethereum. I have no programming experience.
What course do you recommend?

Thanks Luc

#2968

  1. UTXO’s are Unspent transaction outputs. They are the process of sending Bitcoin to anyone (an Output)

  2. In order to send Bitcoin to an output, it must be the same amount as your input. If it is not, it will simply not work and the transaction will fail

  3. Inputs = Outputs + Fee

  4. To be able to send a transaction, you will need your private key which is like your personal digital signature, and one that only you can own. So putting in the input, the receiver will know its you because you’ve used your private key to sign the transaction.

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#2969
  1. It’s an amount of money that you received (from a previous output from someone elses) that is available for you to spent.
  2. You will use additional UTXOs (if available) to cover the full amount.
  3. This is done automatically by the application (in either fixed or dynamic fees).
  4. Because different addresses are used and it’s not easy to know to whom belongs or to whom you are sending to.
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#2970

  1. UTXOs represents transactions of currency made to a private key you control, and the sum of these can be understood to be your balance.

  2. The transaction would not be valid. If the wallet allowed that transaction to be constructed, no miners would pick it up and include it in new blocks.

  3. A good wallet would look at the fees in transactions over the last few blocks are suggest a gas price and amount.

  4. When making a transaction, forward the sum remaining UTXOs to a different wallet that you control such that no outsider can tell which is the payment amount and which is the “change”.

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#2971

  1. UTXO stands for " unspent transactions output", it’s basically the sum of transactions received into your wallet that are still available for you to spend, in other words it’s your balance.

  2. If the sum of my UTXO is equal to zero or not enough to cover the output (plus fee) then transaction won’t be valid.

  3. Transaction fee is calculated with this easy following formula:
    fee = Input - Output
    this is implied rather than specified and can be verified on the ledger.
    A wallet will automatically choose the best reasonable fee based on current and previous transactions. In some wallets it is possible to manually choose the fee to pay (example: miners choose transactions with high fees because then they can add them to their block)

  4. Transactions are already secure as no identity is linked to the address , though it is possible to track all the UTXOs of an address ( you don’t know the owner of the address but you can see their balance). Privacy can be increased by generating a new address each time a transaction is made, the new address will still be linked to your private key, so all your UTXOs will still be on your wallet.

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#2972
  1. Balance of unspent transactions in your wallet.
  2. Transaction will fail.
  3. Calculates fees based on recent previous transaction fees.
  4. New addresses for each transaction.
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#2973
  1. The unspent inputs that are available for you Wallet address
  2. 2 or more are combined to make the transaction
  3. It would take the fee from the inputs and send on and send back the change minus TX and Fee.
  4. No One can tell really know what if the wallet which was sent the change is yours or anyone else as new addresses are created for the change.
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#2974

I depends on what you want to do. If you want to learn programing I would recommend C++ programing course, if not Bitcoin security and DeFi 101 are good :slight_smile:

#2975

True, but if one doesn’t know to whom the signature belongs to that you are basically anonymous on Bitcoin. The problem lies when you are withdrawing from exchanges where you did KYC in those cases eventually when you spend the UTXOs part of them will go to pay a service and the other back to you to a new address and it will be difficult to conduct what part of the output went to whom. :slight_smile:

#2976

You can also use a different address within the same wallet. :slight_smile:

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#2977

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs ,they are transactions (output) we recieve from an input and it´s not spended yet , once we send trasactions it´s not longer a UTOX ( become an input) so we can say is basically the balance in our wallet from previous transactons.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    I wont be possible to complete the transaction it is like not enough balance in our wallet
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    well the fee would be the result from: the input-output: fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? i could use different address everytime i recieve a transaction (payment)
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#2978

Bitcoin Transactions and UTXOs :handshake:

  1. Describe what Unspent Transaction Outputs (UTXOs) are
    The outputs of Bitcoin transactions are called UTXOs and are categorized as unspent until they become the input for another transaction. If I understand correctly the sum of all UTXOs must be equal to the amount of Bitcoins that are in circulation. The size of a UTXO can range from 1 Satoshi to 21 million BTC and simply denominates a certain amount of BTC’s supply that is associated with a specific BTC address and can serve as input to a new transaction from that address.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    If you have other UTXOs at your disposition that together equal or exceed the amount of your transaction they will be bundled together. Otherwise you’re out of luck…

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The wallet wouldn’t explicitly specify the fee but it is implicitly defined as the difference between a transaction’s inputs and its outputs.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    As any BTC wallet (i.e. private key) can be associated with a theoretically finite but practically unlimited number of BTC addresses (i.e. public keys) a new address can and should be used for every new transaction to make it more difficult to determine the total amount of BTC associated with that wallet. Since inputs can be distributed to multiple output addresses including ones that belong to the wallet from which the transaction originates the amount of the transaction can be obscured as well. For all of this to work and preserve privacy coin control should be applied as best practice.

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#2979

  1. Unspent Transaction Outputs (UTXO) are the last transactions in chain of transaction that are does not spend it in other /next transaction.

  2. In this case, all my small utxos are summed up and if sum is large enough then transaction will be executed and rest minus the fee will back to me. If the sum is not enough transaction will fail.

  3. In most cases the wallet take a look into the blockchain to previous fees and automatically propose level that will allow transaction to be made fast. In other cases wallet allow user to pick level of fees.

  4. Using a different address for every receiving transaction will increase privacy.

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