Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#3341

Thank you! That makes total sense. Really appreciate the correction and checking of answers.

#3342

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are. :

they are all transactions that have been sent to your wallet over time and have not yet been turned into a transaction or spent by the wallet user.

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

The wallet queries the blockchain network and verifies all the utxo’s allocated to the address and decides which ones to use for your transaction, it may combine multiple utxo’s to make up enough to cover the transaction. any surplus over, outputs as a utxo and sent back to your wallet.

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

Inputs = outputs + construction fee

the difference of the input and the output would specify the fee.

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

When constructing a transaction you can add one or more transactional outputs to your personal wallet addresses, adding another layer of privacy, Since addresses are not linked to an identity it is hard to try to link utxo’s to an individual.

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#3343
  1. Inputs on your wallets are UTXO until you spend them
  2. Wallet sums all UTXO to show me the wallet balance
  3. It send the amount the the the other wallet and the rest of the balance back to my wallet. Fess is calculated in the difference
  4. Using multiple addresses for receiving.
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#3344
  1. An unspent transaction output is the incoming output from a previous transaction of another wallet that is yet to be spent.
    2.Multiple UTXOs would aggregated to fund the transaction (if available).
    3.The bitcoin wallet would scan recent blockchain transactions to decide upon a fee that would provide reasonably fast execution/confirmation by miners.
    4.You could specify one or more outputs that are actually your own wallet (or wallets controlled by you) to obfuscate the true amounts involved in the transaction.
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#3345

[quote=“ivan, post:1, topic:8436”]

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are your outputs of what was sent yo you in BTC that you did not fiend.

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

You can add all your UXTOs together to get the correct amount.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?

It would look at previous transaction fees and then propose a fee that will get you into blockchain fast enough.

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

Know what addresses you control and do not share the addresses you control with others to increase your privacy.

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#3346

What about in cases when you withdraw from an exchange where you did KYC? Then they know what your address is. :slight_smile:

#3347

  1. Unspent Transaction Outputs are bitcoins transaction outputs which you have received already but not yet spent. They may therefore be spent in transactions to other wallets or to own wallet.

  2. Several UTXOs may be combined to spend a larger amount to cover your transaction.

  3. Input - Output = transaction fee.

  4. Using multiple inputs and outputs at once will increase privacy, for example through adding more wallet addresses which you yourself control.

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#3348

a UTXO is the unspent output from a transaction. When you create a new transaction with this UTXO, it turns into a spend transaction. Then, the cycle repeats.

the transaction would be declined.

Input - UTXO = transaction fee.

I could send multiple transaction including myself and nobody would identify where you have sent your bitcoins.

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#3349

1. Describe what Unspent Transaction Outputs (UTXO) are.
These are outputs from transactions which have not yet been used as input for a followup transaction.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
All UTXO’s will be added up together so possible multiple UTXO’s will be able to cover your transaction. If not, the transaction will be rejected.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
It doesn’t really. It is implied by the difference between total input minus total output. So basically it will deduct the fee from the remaining UTXO.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By having the remaining UTXO returned to yourself but in a different wallet with a new set of keys. It would then be pretty difficult to see what went to someone else and what went back to yourself.

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#3350
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’s are unspent transactions which when added are equal to the balance in the ledger.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The transaction would not happen because there would not be enough UXTO’s to cover the transfer or fee.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Based on the markets and amount of time.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Create a new Bitcoint account to send remaining uxto’s to. This way your public key would always be changing.
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#3351

You can use multiple UTXOs as unputs to a new tx. But if you don’t have enough balance on them, then the tx will be declined. :slight_smile:

#3352

The output if a tx is a new UTXO. In case you create two (one to pay the service and one to send back the change) its difficult to determine what part went to whom. :slight_smile:

#3353

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    An UTXO is basically a fund available for spending. The UTXO could be aggregated with other UTXO to build 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 will be rejected by the network (BC).

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fees are implied and are the difference between the UTXOs of a transaction and the total UTXOs of the wallet.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    We can send “coins” (UTXOs) to ourself. The feature of Bitcoin obfuscates where the funds are spent.

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#3354
  1. UTXOs are prior outputs that became inputs that you haven’t spent yet
  2. you will use several UTXOs to have the sufficient funds and then send change back to your address
  3. by reading the blockchain and seeing (by subtracting the inputs from the outputs from a transaction) how big the previous fees of transactions were
  4. by having several wallets with different private and public keys so that you can send funds to different wallets and nobody knows if you sent it to a wallet that is actually yours
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#3355

1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs or Unspent Transaction Outputs are spendable outputs after a transaction occurs on the blockchain. UTXOs allow your wallet to query the blockchain through nodes and find out their balance based on private key. For example; your wallet queries the blockchain and finds that your private key has UTXOs of 0.3BTC, 0.5BTC, and 0.2BTC, therefore it can calculate that you have a balance of 1BTC. The blockchain does not keep track of your balance, only unspent outputs. UTXOs available for your private key to spend become the input for your next transaction. Additionally, Inputs always have to equal outputs. This is because the blockchain does not keep track of your balance. Therefore if you have 1BTC to spend and you need to pay for a 0.5BTC item, then the transaction will turn the input UTXO to spent transactions, send 0.5 BTC to the recipient, send the fee to the miner, and send 0.5-Fee back to your address. These outputs are not UTXOs and your wallet now determines that you have <0.5BTC.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
It will take all the UTXOs that can add up to enough for the transaction as inputs; then outputs the required amount to the recipient(s) and miner and outputs the remainder to your address. These outputs are now UTXOs. If there are not enough UTXOs that can cover the transaction, then the transaction is invalid.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The fee is implied not specified. You can calculate the fee by taking the difference of the output from the input.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
To increase privacy in your transaction you could generate new wallets to receive the remaining UTXOs and breakdown the outputs to smaller outputs.

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#3356

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

  • UTXO is a claim (right) to spend BTC funds. It can be spent only by the owner of the private key, which belongs to the address that this UTXO is connected with. Once they are spent, they disappear and are replaced with new UTXO(s).

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

  • My wallet would need to aggregate multiple UTXOs that are in control of my private key, and use all of them as an input to the transaction. One of the implications is the higher transaction fee, as the transaction will have a higher size in bytes.

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

  • Transaction fee is determined implicitly, is not specified directly. It can be calculated as the difference between the sum of all transaction inputs and the sum of all outputs.

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

  • Looking at a Bitcoin transaction, there is no way of telling which of the outputs are sent to the “recipient” address, and which outputs are being sent back “as a change” to the wallet who initiated the transaction.
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#3357
  1. UTXO are the Funds that have been sent to your address that you are able to spend from. Total UTXo is the wallets balance.
  2. Multiple UTXO’s that would cover the cost of the transaction plus the fee will be used.
  3. The fee is a portion of the whole that is being used for the transaction.
  4. You could specify more output addresses you control.
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#3358
  1. The balance of your wallet
  2. The transaction is invalid
    3.Input-Output =fee
  3. Using another adress when sending funds back to me
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#3359

Describe what Unspent Transaction Outputs (UTXO) are.
a balance of crypto after sending or receiving

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

transaction fails

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

An approximant fee based on desired speed of tranaction and how busy the network is during your transaction

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

you could spread out transactions to different addresses

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#3360
  1. UTXO’s: unspent transaction output: is money in your wallet you can spend
  2. You can’t purchase anything if you don’t have enough UTXO for the item or service and for the fee; if you happen to have several UTXO’s you can combine them to add up to the total amt needed plus the fee.
  3. The fee is inferred (difference between input amt and output amt)
  4. idk…it is difficult to tell where the input output comes from when reading the blockchain… some outputs are very private because you cannot know if it went back to the input sender or not…
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