Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#3161

The amount you have left to spend
The transaction fails
input - output
Anonimity

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#3162

1.- As its name indicates, UTXOs are transactions of bitcoin received by the adress that have not been spent yet.

2.- The wallet add UTXO’s together. If i have enough UTXO’s when they are collectively added together to cover the transaction, the transaction would be processed. Otherwise the transaction would be rejected.

3.-substracting from the transaction the total input minus the total output.

4.-Using many inputs and outputs to mix the transactions, therefore, making more difficult to someone to read/track the transactions

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#3163 
   1.Unspent Transaction Outputs are transactions derived from inputs from other wallets to your wallet, that you have not spent yet.

   2. Your wallet would create a transaction using multiple UTXOs that equal or are greater than the transaction you would like to cover & if the value of the UTXOs used is greater, the wallet would create another transaction (that gets sent back to your wallet), which is equal to the balance remaining after transaction & fee has been subtracted from the UTXOs.

   3.TX Fee = Input – Output

   4. Generate many different output addresses, although once a person has been linked to any TX you can find all TX’s that are linked to that one.
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#3164

The amount of unspent inputs.
The transaction would not work.
The blockchain determines a fair fee.
Use more than one wallet.

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#3165
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • Unspent transactions that can be used to create a new transaction.
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • You would no tbe able to create the transaction.
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • It looks at previous fees and chooses the best for getting the transaction accepted by miners.
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • The transactions are broken into many UTXO’s and can essentially be sent back to the sender in parts or even the whole amount.
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#3166
  1. transaction has no output spent
  2. transaction cannot be processed
  3. based on previous historic transaction fee
  4. output transactions include transactions that sent back to owner
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#3167

The sum of all your UTXOs is your amount available.

You use multiple UTXOs as inputs to a new tx. :slight_smile:

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#3168

You could use more addresses in the same wallet. :slight_smile:

#3169 
  * Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs are the inputs of funds to your wallet /(s).

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

Usually your wallet will sum up all your UTXOs to make a transaction output valid. Now if the SUM of all UTXOs is not enough , your transaction will not go through (invalid).

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

You wallet specifies the transaction fee with the leftover funds after subtracting your inputs with the outputs funds. Useful Wallets also allow users to specify fee.

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

In transactions there are several addresses and outputs that can result from one input. Unknown publicly if addresses belong to you or to another recipient.

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#3170

It will only pick 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:

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#3171

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    These are the bitcoins you have received and can spend

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    bitcoin would use a fee based on current and previous transaction fees. fee = sent - left over

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    it is hard to tell which output goes back to the owner of the UTXO

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#3172
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs are the payments that have been outputted (sent) to your wallet but haven’t been spent by you. Basically your available balance within that wallet.

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

If you have any other UTXOs that can be used to pay for the transaction when these are combined the transaction will complete. If the combined UTXOs in your wallet is less than the transaction it will fail as you have insufficient funds effectively.

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

It would look at previous transaction fees on the blockchain to recommend an amount which is likely to succeed. This can also be calculated by subtracting the transaction outputs from the transaction inputs

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

You could see that the transaction was valid (if it was added to the blockchain) and the addresses involved in the transaction but what you can never see who owns these particular addresses. There also is nothing stopping senders and receivers having multiple addresses making it even harder to link transactions to a specific person.

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#3173

  • Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are unspent outputs from the previous transaction, balance that you can spend in the next transaction…

  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Wallet would add up other UTXOs, Input always needs to be equal to Output + Fees, and the change would be sent to me in a form of another transaction because of a rule that everything needs to be spent

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is specified as a substraction output from the input, and transactions with a highest fees are realized sooner (because minners pics them in order to get there rewords)

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can increase a sequrity by having multiple private/public keys, number of wallets whitch from outside doent seem connected (wish i knew that you can do that to claim multiple uni tokens :))

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#3174

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are transaction that not spent on your wallet.

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Bitcoin calculates fees by subtracting total input transaction from total output transaction.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Use a different address for each receiving transaction.

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#3175

Ethereum is an account based blockchain and is not UTXO based. Its different in regard that when you use Ethereum you mostly use the same address all the time instead of generating a new one for each transaction. The reason for this is because you store your other assets on the account and you can’t really create a transaction to send tokens from an account where you don’t have any ETH.
If you were able to have tokens on Bitcoin you could spend those tokens from an address and pay the tx fee with a different address.
There are more technical details involved but this is the basic theory. This also makes Ethereum less private, because you always reuse the same address but it does make it more fungible because you can’t mark suspicious UTXOs (stolen for example) like you can do in Bitcoin because in Ethereum you either add/subtract value from an account. :slight_smile:

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#3176

Havent passed eth 101 yet, wiill learn soon abouth that…
loving how much there is in this so called basics and it´is not basic at all :slight_smile:

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#3177

Homework: UTXO’s and TX

  1. Output bytes that can be turn into transactions via wallet…
  2. Would not be valid.
  3. Wallet check the Blockchain to determine fee.
  4. Several addresses and outputs from one input.
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#3178

[

  • Describe what Unspent Transaction Outputs (UTXO) are.
  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Your wallets would gather other transactions that you may have …if you don’t have these transaction could not take place and you would cry
  • How would a bitcoin wallet specify the transaction fee when creating a transaction? Outputs minus inputs leaves money for fee based on previous type of transactions
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction
    Utilise multiple addresses
    [/quote]
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#3179

1 it is the amount of btc that stays on the adress after sending a trasaction

2 you will not be able to send btc with this UTXO, instead you can try to send with one or more another UTXOs

3 total Input - total output

4 you can use new adresses each time you want to send btc. And also i forgot one trick with the miner when you can basicly delete all history about previous transactions

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#3180
  1. UTXO are the amount of Bitcoins you received from somewhere which is not yet spent. In other words, it is input to your wallet transactions.
  2. If you don’t known enough UTXO to cover your transaction then the other nodes won’t broadcast it.
  3. The left-over amount from UTXO, not specified as output, will become the fees.
  4. bitcoin addresses are used for inputs and outputs in transaction to increase privacy. In other words, even public key is not used in transactions.
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