Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#3381
  1. an UTXO can be descriped as recieved transaction to your PK in your wallet
  2. your wallet will combine multiple UTXO’ s, when enough funds + Tx fee are reached the transaction can be executed. leftovers will be send back to your wallet
  3. UTXO - output - sentback = fee
  4. creating multiple adresses
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#3382

[quote=“ivan, post:1, topic:8436”]

  • Describe what Unspent Transaction Outputs (UTXO) are.

UTXO is the balance in you wallet as a result of incomming funds.

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

UTXO’s will be added together to potentially add up to enough to cover the transaction. If the total of all UTXO’s is not sufficient the transaction will not be constructed.

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

Output - fees = Input

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

Since anonymous codes are used, it is possible for the initiator to output the transaction to themselves and or other codes without external parties being able to distinguish which codes belong to the initiator and which do not.

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#3383

UTXO’s are amounts of bitcoin. They are the unit of measurement that are transacted, and represent unspent bitcoin. A wallet address can have many utxo’s associated with it, the sum total of which is your current balance.

if you don’t have enough in a single UXTO, then multiple UTXO’s associated with your wallet would be used.

The transaction fee goes to a separate output, creating a new utxo.

You could use multiple inputs to increase the privacy

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#3384

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are transactions 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?
If you don’t have any single UTXO to cover your transaction your wallet will combine multiple UTXO’s, any change will be send back to your wallet. If your combined UTXO’s are not enough to cover the transaction the transaction will be invalid.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
A bitcoin wallet does not specify the fee but it implies the fee by subtracting the output from the input. So input minus output implies transaction fee.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can increase privacy in your transaction by adding more outputs with adresses that you own. Bitcoin adresses hold no personal information and are not linked to an identity. This makes it harder to link UTXO’s to an individual.

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#3385
  1. UTXO’s are the the outputs of other wallets that have sent you bitcoin that have not been spent by you.(the inputs to your wallet address)
  2. All UTXO’s are combined. If you just had one that was not enough to cover the transaction then the transaction would not be verified.
  3. By comparing recent transaction fees on the network it would come up with a comparable average fee.
  4. By sending part or all of a transaction to another wallet that has a different address that you have the private keys to.
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#3386

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The sum of UTXOs that correspond to your private keys are the balance of BTC that belongs to you.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Then your transaction fee will be zero (less than zero actually) and no miners will process the transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is the unspecified difference between the transaction input and transaction output.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can have multiple inputs and outputs. One or many of those transaction outputs can loop back and return to your wallet.

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#3387

  1. UTXOs are the inputs to a bitcoin address that have not yet been spent. Inputs are bitcoin that have been previously sent to the address.

  2. If no single UTXO is large enough, multiple UTXOs will be used

  3. A bitcoin wallet specifies the transaction fee by the difference between transaction input and output value.

  4. It is possible for the same person to own both the input address and the output address but if they are different addresses then no one can who the recipients are based only on data from this transaction

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#3388
  1. UTXO’s are the transaction amounts that you receive but have not yet spent.
  2. The transaction would be declined.
  3. The transaction fee is equal to the sum of the inputs minus the sum of the outputs.
  4. You can use a new address to receive whenever you need to send BTC to yourself in a transaction.
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#3389

  1. UTXO represents a chain of ownership implemented as a chain of digital signatures. It is an input to a transaction which generates a new UTXO for next owner (or back to the same owner if it is change).

  2. In case you do not have any single UTXO that is large enough to cover your transaction, then multiple UTXO that belong to you will be used. That is in the case you have other UTXOs. In case you do not have more UTXOs or not enough, then transaction will be simply rejected.

  3. Wallet will specify the fee indirectly only. So there will be no value written as a Fee=x, rather it will be e remaining amount of Output UTXO sum - Input UTXO Sum.

  4. One way to do it is by using multiple wallets with diversification of funds.

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#3390
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    is the amount of BTC that I can spend that came to me from someone else as an input
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    my utxo’s can be added and then spend to any afortable limit
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Is choosing the best possible afortable amount for fees per transaction at a given time.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    if I transact with my self by sending to addresses that I own I increase privacy
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#3391

  1. UTXO (Unspent Transaction Inputs) are the transaction inputs to your wallet, thus they are the spent outputs from another.

  2. The transaction would not be permitted

  3. In observance of the transaction (X) spent X output it is accounted for in the (X), what remains will become your new UTXO.

  4. It’s rather to determine and properly trace UTXO and spent transactions, it had enough to track your own when you have many transactions connected with your wallet.

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#3392

You don’t need to combine all of them, you can pick as much as you need to fund the tx. :slight_smile:

#3393

They came as outputs of a tx. Thus the name Unspent TX Output. You can use them as inputs to a new tx. :slight_smile:

#3394
  1. The amount of digital currency left after you did some cryptocurrency transactions
    2.The transactions is not permitted by the nodes/miners
  2. It checks the average fees paid on the block automatically or you have to manually check the avg fee and add your fee for quicker transactions.
  3. One input can be split is different outputs of which some could still be you own.
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#3395
  1. UTXO are potential spending power that can be sent. Essentially it is your balance of a specific currency.
  2. No input traction could be created.
  3. It would be the calculation of the remaining input minus outputs.
  4. Multplie generated address makes it difficult to know which wallet sending or recieving.
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#3396

UTXOs are unspent outputs of a transaction, either by the funds you received or change you received back when you did a tx. The sum of your UTXOs represents your balance.

You can use multiple UTXOs as inputs to a new tx. If you don’t have enough then the tx won’t be permitted. :slight_smile:

#3397
  1. UTXO is the available “change” from previous transactions.
  2. Your wallet will try to cover your transaction adding more UTXO until it reach the sum or it will decline the transaction if it couldn’t get enough.
  3. The wallet will check on previous fees on the blockchain and determine the best cost vs time fee.
  4. Use different addresses for receiving transactions.
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#3398

  1. UTXOs are transaction outputs that you can spend and have not been used yet to construct a transaction. When someone sends you money you now have UTXO from them. When you add up all your UTXOs that is your balance.

  2. If you don’t have any single UTXO that is large enough to cover for your transaction then the transaction will not get confirmed.

  3. The wallet will look at the blockchain and see the previous transaction fees and it will propose a fee that would get you into the blockchain.

  4. Generate new output addresses and multiple output addresses.

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#3399
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    a.) Unspent Transaction Outputs are inputs to my wallet that do not have a corresponding output
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    a) If I dont have a single UTXO large enough to cover a transaction, my wallet would automatically search for other UTXOs to make up the difference to complete the transaction.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    a) A bitcoin wallet specifies the transaction fee by determine which one would have my transaction added to the blockchain the fastest; the transaction fee is also the difference between the input and output
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    a) Transaction inputs and outputs increases privacy by not sharing who owns the address the output is going to. Example, I could send 2 total bitcoins, 1 to my friends wallet and 1 back to my wallet and remain completely private
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#3400

  1. UTXOs are unspent balances in a wallet.

  2. The transaction will not be validated by the miners.

  3. The Wallet will review past transaction fees and recommend so it can be validated quickly by the miners.

  4. The increase in privacy in a transaction cannot be done as the ledger is public and everyone can view the transaction. The addresses are however encrypted.

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