Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#3140
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The UTXO is the bitcoin wallet constructed output that is sent to another wallet at which point it become spent transaction.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Transaction could not be created by the wallet due to a late of satoshi’s.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Input are output plus transaction fees or difference between the input and output transaction.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    When sending a transaction you would select from a number is input and outputs depending on your type if wallet.
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#3141
  1. UTXOs are the amounts which you can spend (the amount of BTC you have usually represented in many separate UTXO values if an active wallet, a hodl wallet may have only one UTXO)
  2. If you do not have a single UTXO large enough to cover the tx you wish to perform your wallet may have to combine multiple UTXOs to reach the desired amount. The tx then would send BTC to the desired TX and send UTXOs (change) back to itself.
  3. the Wallet suggests TX fees based on the most recent previous fees paid on the blockchain in order to get the TX accepted in a reasonable time period.
  4. in order to increase privacy on a TX you could specify an address you control to receive the BTC which is not required for the TX to occur; ie. you specify a different wallet address which you control for the TX to send the change, thus “masking” which would have been the desired TX vs the “change” TX.
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#3142
  1. A UTXO is a transaction output that can be used as an input in a new transaction.
  2. You would use multiple UTXOs (or inputs) whose total amount is large enough to cover the transaction.
  3. The fee is the remaining balance after the output is subtracted from the input.
  4. Coinjoin essentially mixes up the inputs for multiple transactions funded by multiple parties, creating outputs that cannot be traced back to the origin of the bitcoin involved.
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#3143

  1. UTXOs are unspent transaction outputs. They are present when money is sent to someone. The blockchain tracks the UTXOs of a private key, and the wallet is able to add up all the UTXOs to show you a complete balance. UTXOs are the previous inputs into your wallet.

  2. If you need to pay an amount that is bigger than a single UTXO, you can still spend the money because the blockchain will provide your wallet with other UTXOs that you can spend. If the sum of all UTXOs cannot cover your spending, then you can’t spend that much.

  3. a bitcoin wallet never specifies the transaction fee directly. The transaction fee can be calculated by subtracting the outputs from the inputs.

  4. to increase privacy, you could use many addresses to receive transactions. Also, the outputs can be sent to multiple addresses, including back to the sender. No one knows exactly how much is spent.

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#3144

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 are Unspent transaction Outputs. The Blockchain stores your UTXOs and the wallet, accessing those UTXOs, gets your balance. Then, it generates the UTXOs sent to some other account/s, which becomes Inputs for another transaction, and so on and so on… (S. Zizek :smiley: )

2- Since all Inputs and Outcomes must be equal (no fees yet, or Inputs = Output + fee), if the Output is bigger than the Input, the transaction would not be valid.

3- The wallet will check the fees in the Net and would suggest you a fee that will likely make the transaction run smoothly, or you can select the fee’s amount. The fee will be the difference between the Input amount and the Output amount.

4- Only addresses are listed in the Tx.

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#3145

Correct if you don’t count the fees. :slight_smile:

#3146

UTXOs are Unspent TX Outputs. They can be used as inputs in a new tx. :slight_smile:

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#3147
  1. They are the result of the previous transaction’s input to your wallet. It identifies an amount that can be spent in the next transaction.
  2. The wallet takes the sum of all utxo amounts and if the total is not enough to cover it with the fee, it does not go through.
  3. It takes the difference from the input minus the output, the miner fee is a variable amount that wallets give options on how high of a fee we want to pay.
  4. New addresses can be created with each transaction. Although companies have ways to track addresses and doesn’t make it to where it is totally private.
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#3148

It will only puck as much UTXOs as required to fund the tx, not all of them. That would be unnecessary and would only increase the tx fee by making the tx more complex. :slight_smile:

#3150

Unspent transaction output is basically a received transaction that you can spend

  1. The transaction will not go through

3 Total Input minus Output = txn fees

4 you can create multiple inputs using different wallets

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#3151

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Unspent Transaction output ( funds you received that now can be spent.)

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    No Transaction will take place.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    By the number of UTXO’S and will search for you under the amount and determine the best block chain and fees for you.

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

Use a different address for each.

[/quote]

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#3152

  1. UTXO correponds to the amount of BTC available on the wallet

  2. No transaction

  3. Input-output

  4. Use different addresses

#3153

UTXOs are output from a transaction that can be used as inputs to a new one. :slight_smile:

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#3154

Tthe sum of all UTXOs corresponds to the amount of BTC in a wallet.

You can use multiple UTXOs as inputs to a new tx. If its still not enough, then the tx will be declined. :slight_smile:

#3155
  1. They are transactions assigned to my wallet which haven’t been spend.
  2. Transaction will be ignored.
  3. UTXO - fee = new UTXO
  4. Another wallet can be used for transaction output.
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#3156

Technically when you use an UTXO in a new tx it becomes an input to that transaction. :slight_smile:

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#3157

yeah, good point!Got the idea, worded it wrong!
I shall correct that phrasing! Thanks.

#3158

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are used to calculate a wallet’s balance are are used as inputs in transactions.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Assuming I have multiple UTXOs which have cumulatively sufficient funds for my transaction, multiple UTXOs may be used used as inputs in my transaction.
    If I do not have sufficient funds in UTXOs cumulatively, the transaction would fail.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Generally, bitcoin wallets will calculate the transaction fee by optimally determining the cost of which a transaction would be accepted by the blockchain network in a reasonable time.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Inputs and outputs in a bitcoin transaction are just bitcoin addresses represented in strings of characters which could be controlled by a single person or multiple people. I could use multiple wallets to send funds to multiple addresses.

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#3159

1 - UTXOs are payments that are made through the wallet, they are outputs and will go either to recipients or to myself in a different address (even if within the same wallet).

2 - The payment will remain unpaid until new enough funds arrive with new UTXOs

3 - The wallet can either decide to use the same fee of previous transactions or use a different fee basing on how “urgent” is a transaction.

4 - Multiple inputs and outputs can be present in the same transaction.

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#3160
  1. Describe what Unspent Transaction Outputs (UTXO) are.strong text

It’s an output of the blockchain transaction who 's not use in a new transaction as an input

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

We can sum multiple UTXO in Input to cover output transaction

3 . How would a bitcoin wallet specify the transaction fee when creating a transaction?
Input = output + fee

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

Generate new output addresses, and also have multiple output addresses

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