UTXOs are Unspent TX Outputs. They are the outputs of a tx that can be used as inputs to a new tx. The sum of all your UTXOs is your balance in the wallet
You can use multiple UTXOs as inputs to a new tx. If you don’t have enough the tx will fail. 
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I would say its only where the transaction finishes until its used as an input to a new tx.
The sum of all your UTXOs is actually your balance.
You can use multiple UTXOs as inputs to a new tx. If you don’t have enough the tx will fail.
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXO stands for unspent transaction output - it is the exact amount (balance) of cryptocurrency that was recived by yor wallets private key
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
You cant make such a transaction.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
Input (-)minus output = transaction fee
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Divide transaction between different wallet adreesses
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The output of a transaction, which is assigned to an address, and will be used as input to another transaction in the furutre
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The wallet will construct the transaaction using multiple UTXOs that are yours in an attempt to have enough. If not enough, it won’t construct the transaction.
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The input total minus the output total. It can also look at the most recent trasactions on the blockchain to get an estimate of the current fees.
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Send the UTXO to additional addresses that you own
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Describe what Unspent Transaction Outputs (UTXO) are.
Unspent Transaction Outputs are received transactions that can be spent in the future - total balance.
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What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Transaction will be rejected.
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How would a bitcoin wallet specify the transaction fee when creating a transaction?
By querying the blockchain - it will be added to the output total.
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How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
I don’t know…
Spend the full balance of the address in that transaction ?!?
Most people have answered “increasing the number of inputs and outputs”
I don’t understand why I would choose to pay multiple transaction fees for privacy - or maybe I’m missing something !!
UPPON FURTHER RESEARCH THIS IS WHAT I’VE DISCOVERED:
Currently privacy is a weak point of BTC as also addressed by Satoshi in the white-paper.
ON-CHAIN privacy leaks can occur:
- the UTXO model provides ability to verify that each coin is accounted for - each wallet has multiple UTXO’s and each address has a whole history attached to it.
- addresses are not tied to your identity on the blockchain, BUT addresses CAN be linked to identities through investigation and chain analysis.
OFF-CHAIN privacy leaks can occur when:
- you do KYC/AML identification on the exchange you buy from (unless you buy P2P - which I doubt many do)
- you publish your BTC public address on any platform that has your real name or address (for donations or payment addresses)
Privacy is complicated because identity leaks can happen in a variety of ways so protecting your privacy requires more skill and effort.
Best way to maintain privacy ON-CHAIN are:
- Avoid Address Reuse - use wallets which automatically generate new addresses for each new received/spent transaction.
- Coin Control - use wallets that give the user the ability to decide which UTXO’s can be used OR automatically prevents merging of UTXO’s.
- CoinJoin and mixing services - centralized mixing services (tumblers) - require 3rd party-trust and are illegal in some countries due to AML laws.
- Reusable Payment Codes - can be used an infinite amount of times and each transaction generates a new destination address (requires both sender and receiver to use compatible RPC wallets)
- Lightning Network - sidechains or 2nd layer solutions can enable transactions excluded from registration on the main chain.
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Avoiding Change Addresses:
- this is what remains when part of the balance of an address (UTXO) is spent.
- the wallet sends the remaining balance to a newly generated wallet address - “change address”.
- whenever this “change address” is spent by the wallet, chain-analysis can link that address to the prior transaction and with any other address that is merged with that chain address - they all have the same owner.
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A description of what Unspent Transaction outputs will contain a bitcoin amount received to the private key of a wallet on the blockchain . These transactions become confirmed by verifying with all the other nodes containing copies of the blockchain. Transactions have input(s) and output(s) that can send money to multiple people in one transaction. Inputs represent where you receive money from. When a wallet receives this input and uses it as an output it is no longer a utxo.
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When you you don’t have any single utxo that is large enough to cover for the transaction, you need to send the entire amount of utxos that will be sufficient enough to cover the entire cost and send the remaining amount back to an address you own.
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A bitcoin wallet specifies the transaction fee when creating a transaction by subtracting the input minus the output amount.
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The way to use notion of transaction inputs and outputs in order to increase the privacy in a transaction is to use a bitcoin wallet you already own with funds and send it to another wallet you control the private keys to.
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Describe what Unspent Transaction Outputs (UTXO) are.
Is the balance of your unspent transactions -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
You would use multiple’s of inputs -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
UTXOs track your wallet, stores your privat keys, and choses the best fee at that given moment. The fee + output = input -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Increase the number of outputs. In theory, you could be sending the funds return to your goodself
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The sum of all your UTXOs is the balance of your wallet.
You can use multiple UTXOs as inputs to a tx. If you still don’t have enough then the tx will fail.
Great research on your side 
Its true privacy is complicated on pseudo anonymous blockchains like Bitcoin.
The issue here with avoiding change addresses is I think because the wallet will automatically use them when you send funds. Most modern wallets handle addresses behind the users back and as you have maybe noticed every time you receive you will get a new address and also when you send funds the wallet will generate a change address for you.
When you are sending funds the wallet will also combine UTXOs from either the received addresses or change addresses and at that moment the addresses can be linked to the same person indeed. A good way to avoid this is by creating multiple accounts in the wallet for example. Where you have one account where you withdraw to from exchanges where you did KYC and another account where you send funds to from DEXes or other ways where your identity is not linked. The wallet will not combine UTXOs from different accounts.
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Also, If you don’t have enough combined UTXO’s, stop buying bicycles @ 0.7 BTC (@Ivan) !!! 
(unless you r a Pro Cyclist)
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UTXOs are the amount of BTC we have received and that are available for us to spend.
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One single UTXO does not need to enough on it’s own. As long as the total from all UTXOs is enough that you can proceed with the transaction.
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The wallet will specify a transaction fee that will allow the transaction to be included on the blockchain in a reasonable amount of time.
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Anyone can see the transactions created on the blockchain but nobody can tell who the recipient is. you increase privacy even more by creating additional transactions.
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This is the amount/balance of BTC your wallet has calculated from your transactional record on the blockchain.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The output is calculated on the total amount of UTXO available to you calculated by your wallet. When you wish to purchase or send BTC, then the calculation is Total UTXO - the send/purchase amount - Fee (calculated by wallet) with the balance being sent back to the wallet.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
This can be a fixed amount set in the wallet or the wallet can calculate the amount based on a fee that will complete the transaction in a reasonable amount of time.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By send BTC to yourself it makes it very difficult for people to follow your transactions and UTXO amount.
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- UTXO’S in cryptocurrency basically are the transactions that are left unspent after someone completes a transaction.
- If a single UTXO isn’t large enough to satisfy the demand of the input amount, then the wallet will use a second, a third, etc until the total is greater than or equal to the amount your sending.
- Basically, a bitcoin wallet uses dynamic fees that will calculate the appropriate fee of the transaction. The input minus the output minus transaction fee.
- To increase the privacy in crypto transactions, generating new addresses for every transaction makes it more anonymous .
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1. Describe what Unspent Transaction Outputs (UTXO) are.
- UTXO are collected amounts received forming an available total (balance).
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
- A transaction would not be confirmed if the UTXO is not sufficient to cover the purposed amount + fee.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
- A Wallet calculates & configures a fee that’s best for the type of transaction being made on the blockchain.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
- The more output recipients created the more complex it is when tracking where the funds have went. - Higher transaction volume creates a form of privacy because of the difficulty in tracking - But the blockchain is always transparent.
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[quote=“ivan, post:1, topic:8436”]
- Describe what Unspent Transaction Outputs (UTXO) are.
- the notion of transaction inputs and outputs to increase privacy in your transactions
- UTXO are all input transactions to a wallet that have not been spent. A wallet will figure out its balance by summing up all its UTXO.
- The wallet will select as many UTXO as needed to sum an amount of BTC greater that the amount of the transaction to be performed.
- The wallet will query the blockchain and figure out which is the right fee for a transaction to be executed in a reasonable timeframe. Some wallets may offer user the possibility to specify a fee, but that is not always the case.
- All input transactions in a transaction must be covered by the UTXO plus the fee of that transaction. By using a big number of to-addresses in a transaction, many of which can belong to the sender, it makes very difficult to track and that increases privacy.
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1 UTXO is the balance in your wallet of inputs available to spend.
2 The transaction will be rejected from the blockchain via the nodes.
3 A wallet calculates the best fee from the output amount and the optimum transaction time.
- Each transaction increases the difficulty of the hash encryption, therefore the security of the blockchain, so more transactions = greater security.
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The sum of all your UTXOs is your balance.
You can use multiple UTXOs as inputs to the tx. If you don’t have enough then the tx will fail.
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- UTXO’s are unspent transaction outputs, and they come into wallets as UTXO’s sent from other users.
- if you do not have a UTXO to cover the transaction fee you will not be able to send the UTXO
- The bitcoin wallet will take both UTXO outputs of the transaction coming from the wallet and subtract the larger one from the smaller one and use the remainder as a fee. The fee can be set manually and automatically depending on the wallet you are using.
- transaction inputs and outputs increase privacy because it is difficult to tell which parts of the transaction are going to the same user sending the transactions in the first place and what transactions are going to another user/wallet.
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- UTXOs are the sum of unspent transaction outputs associated to my address. (“balance”)
- The transaction wouldn’t be confirmed and accepted to the blockchain
- It’s the difference between output and input calculated by querying the blockchain for the most reasonable transaction fee.
- Simply be increasing the numbers of outputs and returning it to your address (or multiple others)
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Hello Carpe’ Diem, Here is an answer that may make the situation clearer and easier to understand:
- A bitcoin wallet specifies the transaction fee when creating a transaction by referring to similar txns completed recently and finding the best match and the fastest value that will get the txn completed.
- You can use the notion of transaction inputs and outputs to increase privacy in your transaction by sending the OUTPUT UTXOs to addresses that belong to yourself.
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