Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#3100

You don’t need to spend all of them, just enough to fund the tx. :slight_smile:

#3101
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Unspent Transaction Outputs are the transactions that a wallet has received and they can be used as inputs to create new transactions.

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

Multiple UTXO’s will be summed up to match the transaction amount you want to send. If the some of all UTXO’s is still not large enough to match the amount the transaction will not be verified by verified by the nodes and the miners will not confirm it on the blockchain.

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

The transaction fee in (most) wallets is implied and calculated for you. It will use the most reasonable fee to make sure your transaction is confirmed in the blockchain at a reasonable speed.

  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By creating more wallets, making a more and more complex web of wallets can you own yourself. From the outside it will look like you are sending transactions to different ‘‘people’’.
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#3102

1- Unspent transaction outputs are the outputs from previous transaction, sent to a wallet, that have not been used as inputs for new transactions sent from that wallet. Essential, they comprise a wallet’s balance.

2- If you don’t have any single UTXO that is large enough to cover a transaction, a transaction will be made that consists of multiple UTXOs, and the difference between this sum of UTXOs and the amount to be sent will be sent as a separate transaction back into the same wallet.

3- The bitcoin wallet would specify the transaction fee as the difference between the UTXO and the transaction input.

4- Transactions can be sent to multiple outputs, including the sender’s own wallet, which allows to recipient anonymity

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#3103
  1. Unspent transaction output are the right to some specific amount of coins by your private key.
  2. If you have a sum of UTXO’s greater than the sum of the transaction, you can procede to transact. But if the sum of all the UTXO’s you have are not greater than the transactions cost you cannot procede. For a transaction we never look at only one UTXO but at all the UTXO’S which the wallet use to show your balance.
    3.The wallet would look at previous transactions fees on the blockchain and would either propose you different options of fees or would calculate you one fee that would be enough to procede your transaction fast enough.
  3. Use different adresses to receive different transactions.
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#3104
  1. They are information about a received output not spent yet
  2. That the transaction will not be done
  3. Looking for past fees to find an amount that would get the transaction reasonably fast as miners give priority to transactions with higher fees
  4. By increasing the number of outputs
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#3105

  1. UTXO tells you what is in the wallet, how much you have unspent in your wallet. Or just the blance you have.

  2. The transaction wont happen.

  3. Transaction input minus transaction output equals fee.

  4. Use another address to sent back to yourself

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#3106

You can always combine multiple smaller utxo’s together to cover the amount. Only if the sum of all your available utxo’s aren’t enough to cover for your transaction, the transaction will not be valid.

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#3107
  1. UTXOs are the wallet balance
  2. no transaction because there is is no balance on the wallet!
  3. Fee= Input - output
  4. By increasing the number of outputs makes tracking transactions more difficulty
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#3108

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’s are actual Inputs for a Wallet that has received transactions. In essence those are transactions which are attributed to that particular Wallet and have not, yet, been spent.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    It is not necessary to have a single, large UTXO in your account.
    As long as a SUM of all UTXO’s covers (wallet checks blockchain for balances attributed to particular wallet) what you are looking to purchase it would go through.
    In case there is not enough of balance to cover funds required that transaction would be declined.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Fee would be a fraction of transaction and the whole transaction would be a sum of funds sent plus that fee. Wallet would calculate the fee depending on rates miners charge to process/confirm the transaction.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    When your outputs (add addresses) increase, you can be receiving funds on another BTC address. Since there are no ID’s or names assigned to any wallet address this helps increase privacy of transacting on blockchain.

G.

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#3109
  1. UTXO is the number of unspent coins in your wallet
  2. The transaction will not go through if you haven’t got enough coins to cover it
  3. It will either ask you or suggest a fee considering other recent transaction fees
  4. You can input from several addresses to make the transaction more private
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#3110

The sum of all UTXOs is the balance of your wallet.

You can use multiple UTXOs as inputs to a new tx. If you don’t have enough then the tx will not go through. :slight_smile:

#3111
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    These are the transactions coming into your key: available to spend.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The total utxos will be added and their total will be used for your next transaction/payment.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The bitcoin wallet normally adjusts the most convenient fee. In some wallets you can adjust it yourself. The fee is taken from the payment you do to yourself as explained in the video:v
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    I soppose nobody can guess that the money coming out is in fact being sent back to you, meaning available to spend again.
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#3112
  1. When it comes to doing transactions. The sender whomever it may be is the ( output ). Followed by a transnational process , which than becomes an ( input ). The output amount is open unless it is not spent or send to another recipient. Usually this is formulated within the wallet giving the estimated funds amount.

2.The transaction wouldn’t be able to finalize completion.

  1. For instance, the wallet will follow the protocol of Inputs = outputs + tax fee. In most cases bitcoin will calculate for you or proposed fee to allow you to get into the block-chain quickly.

4.For example, when it comes to bitcoin addresses no one is in control of them. It would be very difficult if your looking for the outside within. They would consist of a lot immunity & privacy.

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#3113
  1. Received transactions to your wallet that have yet to be spent.
  2. You could combine many UTXO inputs for pay for an output transaction.
    3.Input-output=fee
  3. Create new addresses for each transaction.
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#3114

The fee is implied as the difference between the inputs and the outputs of a transaction. :slight_smile:

#3115

The funds are not estimated. They are the exact amount in all your UTXOs.

You can combine multiple UTXOs in one tx, if you don’t have enough, then the tx will be declined.

What about when you withdraw funds from an exchange where you did KYC? :slight_smile:

#3116

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Unspent Transaction Outputs are the digital currency available for spending/transferring, as kept track by the wallet. They are the sum of transactions you have received and not yet spent (including change from previous transactions)

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    In the case that one single UTXO is not large enough to cover the transaction, the wallet would choose a combination of UTXOs that equals or exceeds the transaction amount and combine them into one transaction of multiple inputs. If there are not enough UTXOs in total to cover the transaction, then the transaction will be denied.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Fee equals input minus output and is calculated by the wallet based on analysis of similar transactions in the blockchain in order to facilitate a timely transaction.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can establish multiple addresses for yourself so that even when you have ‘change’ from a transaction, that could be sent to a different address from the input one, and render it difficult for anyone watching the blockchain to know exactly how many UTXOs you have

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#3117

  1. UTXO’s are all of the unspent ‘‘coins’’ that were sent to a specific bitcoin address making up the balance of the specific address. They are also essential for bitcoin transactions and are used as inputs when sending coins.

  2. You would then have to combine two or more UTXO’s that are large enough to cover the transaction you want to make, pay fees, and send the remaining amount of outputs back to yourself.

  3. Some wallets allow the user to specify their own fee, but there is a min. transaction fee that they have to pay. In general, the wallet specifies the TX fee by calculating ‘‘input=output+tx fee’’ where both input and output are known.

  4. We can see the addresses, but we can’t really link them to people or identities meaning we don’t know which outputs belong to who, which adds privacy.

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#3118
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The Unspent Transactions Outputs or UTXOs are those transactions sent to ones private key available to have them sent to any public key including our own.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    If no single UTXO in my private key is large enough is not necessary a problem because other remaining UTXOs can be added. In the case of the sum of all UTXOs would show insufficient the system will not validate my petition.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    By adding up the total amount of bits necessary from the sum of Outputs and inputs at a transaction the bitcoin wallet is able to define the total fee. The larger the number of Outputs and inputs the greater number of bits resulting the fee to be greater.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    No matter where you see it from, the system doesn’t stop surprising the level of privacy the user can experience in the usage if bitcoin. The amount of money a private key holds is very difficult to define by an external user. All UTXOs are always utilized in the form of transaction. Sending back the possible remaining bitcoin to it’s original private key through a different address.
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#3119

  1. Unspent Transaction Outputs are outputs from previous transactions

  2. You would not be able to perform that transaction, as inputs must equal outputs + TX fee.

  3. The fee would be calculated as the difference between transaction outputs and available inputs

  4. You can use multiple addresses when performing transactions and even use yourself as a destination for an output.

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