Homework on Bitcoin Transactions and UTXO - Questions

[gregsmittie]

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   Effectively the balance that the wallet can spend on a transaction.

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

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   TX Fee = Inputs - Outputs

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? Split the outputs to multiple addresses that you control

[CryptoTrader]

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXO is basically your unspent transaction amount after crypto transactions Unspent transaction output
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   your wallet combines UTXOS to cover the amount needed, any unspent amount is usually sent back to the same wallet less any fees
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The wallet looks at the current blockchain and determines based on actual current fees what a reasonable fee would be to get your transaction on the blockchain
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   by utilizing different addresses

[Alichia]

Homework on Bitcoin Transactions and UTXO

• Describe what Unspent Transactions Outputs (UTXO) are.
  • UTXO’s are the unspent outputs in your wallet (Basically the portion that you can still spend).
• What would happen if you do not have any single UTXO that is large enough to cover for your transaction?
  • All your separate UTXO’s from previous transactions will be added together to cover the transaction and if that is large enough the transaction can be done, but if the UTXO’s together are still not large enough the transaction will not go through.
• How would a Bitcoin wallet specify the transaction fee when creating a transaction?
  • The fee is the amount after deducting the output from the initial input.
• How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • By increasing the output addresses.

[Alko89]

@Alichia

All your separate UTXO’s from previous transactions will be added together

You don’t need to add all of them, that would only increase the size of the tx and thus the fee. You can just use as many UTXOs as you need to fund the tx.

[khary_B]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   They are accumulated inputs to a private key found on the block chain by the associated wallet.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   The transaction will not be accepted into the blockchain.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   It should calculate the optimal price for the quickest acceptance onto the blockchain.

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

[Alichia]

Hi Alko, thank you for the explanation, much appreciated.

[Tom_Cain]

1. The wallet balance
2. The transaction would not happen
   3.The wallet estimates the tranaction fee for you and is recorded on the Block Explorer
3. Use multiple addresses to increase your privicy

[Max_Biedrzycki]

• Describe what Unspent Transaction Outputs (UTXO) are.
  UTXO’s are unspent inputs for a new transaction or better summed up by the balance in your wallet.

• What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  If the UTXO is not large enough to cover the transaction, then the transaction would be invalid.

• How would a bitcoin wallet specify the transaction fee when creating a transaction?
  FEE = INPUT - OUTPUT

• How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  The use of many addresses typically allows for more privacy, plus all addresses are anonymous. You can make multiple outputs in one transaction including paying back ones self in order to fulfil the equation INPUTS = OUTPUTS + FEE.

[Alko89]

@Tom_Cain

The wallet balance

The sum of all your UTXOs is your balance.

@Tom_Cain

The transaction would not happen

@Max_Biedrzycki

If the UTXO is not large enough to cover the transaction, then the transaction would be invalid.

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

[TonLocc]

1. UTXO which are input into a wallet, it’s also a output from a different wallet. Your wallet will track all the UTXO that was sent to your wallet to determine how much funds you have.

2. If you don’t have any UTXO large enough to cover a large transaction, your wallet will look into the blockchain to see all the UTXO that was sent to your wallet. Your wallet then will add those UTXO up to determine your balance. It then will use that balance to cover the large transaction and send the change back to itself.

3. When a wallet creates a transaction, the wallet will look at the blockchain to see the previous fees. Then it will propose a fee that make sense.

4. Your wallet can send funds to multiple different Bitcoin address, making it difficult to know who owns what wallet.

[Andre_Mark]

1. An unspent transaction output is a part / full transaction which is sent to your bitcoin wallet.
2. The transaction would not process - you would need to obtain more UTXO’s.
3. Inputs - outputs = fee, your wallet would calculate the fee
4. Use multiple addresses for incoming transactions

[nmhorbury]

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXO’s are confirmed transactions to a wallet / address which have not been spent

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   In this case the transaction cannot be completed, in practice you would use additional UTXO’s equal the transaction (+fee’s)

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The fee is the sum of the input minus the outputs so it is the amount left from the sum of the UTXO’s - sum of transactions. The wallet calculates this based upon recent block chain fees to ensure that the transactions are processed on the block chain in a reasonable timeframe

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   When completing the outputs, you can direct the remaining unspent transactions (similar to the change in physical currency) to an alternative address thus masking the actual transaction and cost.
   [/quote]

[Dougal]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   Unspent wallet bc balance

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

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   total of Inputs minus total of outputs. Some wallets allow for choosing the fee. Higher fees for quicker transactions.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Create multiple address(s) for yourself if you want to transfer some or all of UTXO(s) into new address(s)

[AMF]

1. It is the amount of coins you have in your wallet that can be spent
2. Another UTXO will be used to complete the amount of transaction needed
3. It propose a sufficient amount of fee to finish the transaction fast based on the previous fees in blockchain
4. Unidentified different address used for input and outputs

[StaknSats]

The wallets asks the blockchain :
“which UTXO can this private key spend??”
the blockchain will send the transactions of what bitcoin you received from where.,

the wallets adds it up and tells you how much you can spend. IN this case, your answer is - Transaction is not validated and is ignored - NO TRANSACTION

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

Inputs=Outputs+Miner fee,
where the (implied) fee is equal to = the total inputs minus the total outputs

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Direct unspent output transaction
9 your change) to newly generated addresses. Generate new addresses for your input transactions to not connect transaction to one another and ultimately prevent linking your addresses to one another and narrow in on your identify by jeopardizing your sense of anonymity

[cryptomomma]

1 Transaction amounts received sitting cross legged on the floor just waiting to be spent.

2. Wallet is nice enough to add up multiple UTXOs and if total is large enough to cover the expense, away it goes and also makes change for you to keep if any is left over after transaction fee.

3. Input - Output = fee.

4. Break transactions down and send to multiple addresses.

[Beazin]

1. UTXOs are the amounts of crypto you have received to your wallet address.
2. If you don’t have any single UTXO to cover a transaction, it will use multiple UTXOs and you receive the difference back to your wallet.
3. The transaction fee is the difference between the inputs and the outputs.
4. You could send yourself crypto to multiple addresses. You could send values larger than your UTXOs so the remainder of what was sent would come back to the original wallet.

[frmrlayman1]

1. Unspent Transaction Outputs are the separate balances of transations on the blockchain.

2. If you don’t have any single UTXO large enough to cover the input of your transaction the other UTXO’s nearest in value to completing your transaction will be added to the input.

3. A bitcoin wallet specifies the transaction fee by either requesting an amount from the user or declaring a recommended amount by researching the most recent blockchain transactions that were completed in the least amount of time by the node network and miners.

4. You could send different amounts at different times to make seperate transactions to another user to complete a purchase or transfer or make sure that your transactions remain small that move into your wallet so that when introducing UTXO’s in a transaction it will be less likely to be tracked as a potential large transaction amount.

[Hogie]

1. Describe what Unspent Transaction Outputs (UTXO) are.
is the amount you are able to spend in your wallet
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
nothing would happen since it wouldn’t be accepted
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
it is the input to the address and the output subtracted from each other (Input-Output=Fee)
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
send to multiple addresses

[Twenty_Seven_Sounds]

Bitcoin Transaction and UTXO Answers.

1. UTXO is unspent bitcoins that the Blockchain keeps track of and is queried from a “wallet”.

2.Your “Wallet” would make a query to Blockchain asking for the amount of UTXO related to your private key. The Blockchain would inform your “wallet” that there are no UTXO available with this wallet and deny the transaction.

3. Since the protocol’s rules state all UTXO have to be spent, the output fee is the difference between the output and inputs. Inputs = Outputs + Transaction Fee. This formula is
   Fee = Input - Output. Please note the Wallet will take a look at the Blockchain, seeing previous TX fee’s it will then present a fee that will get in the blockchain reasonably fast.

4. Transaction are inherently private when looking from the outside, simply reading transaction on the blockchain explore only shows the different wallets TX have been sent too, looking at it this way there is no way to tell who the outputs belong to, third parties, or the senders. You could also split the transaction up over a variety of wallets.