Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#321

  1. UTXOs are input transactions that your private key can control.

  2. The transaction would not be valid unless you use more than one UTXOs

  3. The wallet calculates the fee by subtracting all outputs from all inputs.

  4. By using multiple addresses for each UTXO

#322

Your transaction is most of the times not equal than some utxo you have, so you need to send back change to another address you own. This makes it difficult for outsiders to know what is the payment and what is the change back to yourself

#323
  1. UTXO is the balance of combined incoming transactions sent to your wallet.
  2. The transaction wont go through.
  3. Input - UTXO = fee. The wallet does it automatically.
  4. Using different wallet addresses can increase the privacy of a transaction. It is harder to track utxo from multiple wallets.
#324
  1. it is the total wallet balance

2.there would be no transaction

  1. It is whatever the difference between UTXO input and output

  2. By using different addresses

#325

First your Wallet will try to combine multiple smaller utxo’s together to cover the amount. If the sum of all your available utxo’s aren’t enough to cover the amount, then it will fail

#326

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Your wallet with your private key will check all UTXO it has access to and add them up. This is then your balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    You would not be able to perform this transaction.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Transaction fee = Input - Output
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can send send balances to yourself again, this will create new addresses
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#327
  1. UTXO’s are the sum of all inputs to a wallet
  2. A combination of UTXO’s will be used to complete the transaction
  3. The fee is the difference between the output and the input
  4. By using multiple wallet addresses
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#328

  1. Unspent transaction outputs. It tracks the transaction outputs that are unspent. The wallet’s UTXO sums the total of unspent transactions and gives the total balance.

  2. The wallet will combine multiple UTXOs to have the sufficient amount for the transaction.

  3. The fee is determined from the difference between input and output amounts. The wallet will suggest an optimum fee based on the previous outputs.

  4. By using many transactions to increase the number of input outputs. This is helpful in increasing the privacy from manual explorer viewing.

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#329
  1. UTXO.s are basically the balance of digital money that is kept track of in your wallet .
  2. If you didn,t have a single UTXO you wallet that is large enough to cover the transaction your wallet would construct a suitable combination of UTXO,s to cover it fully and if there was to much it would send you back the change .
  3. A wallet is proposed fees but usually chooses the best one . It works out fee by subtracting input from output .
  4. Use multiple outputs and have different addresses .
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#330
  1. UTXO’s are the bitcoin coming into your wallet.
  2. The transaction wouldn’t be processed.
  3. The wallet would search the blockchain for a block to complete the transaction quickly enough with a reasonable fee based off fees for similar transactions.
  4. Using private key with different addresses for each transaction.
#331
  1. Being on the receiver side of a TX and has yet to spend a certain sum via sending your asset is considerd unspent.
    2.TX would be declined.
    3.BTC wallet automatically calculates from fee data generated to the blockchain.
    4.Privacy is the core inherent idea in crypto in which one cannot reverse a sig to reveal private key and cannot observe from the outside to who TX go. Many addresses that rceive can belong to the same person secretly
#332

  1. UTXO is available input transactions that were directed to the wallet and are ready to be spent.

  2. If you have multiple UTXO’s then it will combine them, deduct fees and will return the change to the wallet. If you don’t have a UTXO large enough to cover the transaction + fees then it simply would not go through.

  3. Bitcoin wallet would calculate the difference between the input and output (input - output = fees)

  4. To increase privacy you can add a new address that is yours between the outputs.

#333

  1. UTXOs effectively describe your BTC balance on chain. You wallet collects all the unspent transaction outputs that belong to you and derives your BTC balance. You can then use these unspent outputs in a new transaction, effectively spending them.

  2. Multiple UTXOs, from the available UTXOs that are in your wallet’s possession, are then grouped together to SUM to a value that is equal to the cost of the transaction you wish to make + fees.

  3. This would be the difference between the Input and the Output UTXO values. Some wallets allow you to specify this value manually before making a transaction.

  4. You could increase the number of outputs on a transaction so that no one really knows who the intended recipient is. So if you (A) with wallet address AA, is sending money to B you could also include other wallet addresses in your possession to include in the transaction… so your input could AA -> [BB,AB, AC, AD] where AB, AC, and AD are other wallet address in your possession.

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#334

  1. UTXOs are the outputs of transactions to my private key until i spend them, then they become spent transactions and the output of my transaction will be the UTXO until spent again.

  2. i need to spend more UTXO which in sum are big enough and the difference minus the fee will be sent back to my private key.

  3. the fee is not specified. fee = input - output

  4. multiple outputs to multiple private keys

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#335

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are all unspent outputs you received via inputs to your wallet. The sum of all UTXOs is the amount of BTC you are able to spend.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    You can propagate your transaction to the network, but the nodes will not accept your transaction, because you cannot spend more BTC than you actually have in your wallet.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A bitcoin wallet is scanning the recent transaction fees in the Bitcoin network and calculates a fee, which will be accepted from the miners in a reasonable time span. Transaction fee is a compromise between the cost of a transaction and the time you have to wait for a transaction to be accepted by the miners.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can send back one output to a recipient and the second output back to another address you own. From a single private key you can derive as many public keys and there BTC addresses as you desire. Therefore you can send your “change” of the BTC transaction back to the same wallet using another BTC address.

#336

1, UTXO are all the transaction that you have received, but you havent spend them yet. Sum of the is your total balance.

2, Then the wallet adds another UTXO.

3, The wallet looks at the previous transaction fee.
4, By sending to many output address.

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#337

  • Describe what Unspent Transaction Outputs (UTXO) are.
    Transaction that have been received that can now be spent.

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

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Fee is equal to the inputs minus the outputs.

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Use different addresses on transactions.

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#338

  1. UTXOs (unspent transaction outputs) are all of the transactions received on an account used to determine whether an account has enough money to send money to another recipient.

  2. If the sum of all UTXOs is not enough to cover the transaction, your wallet will not allow you to post to the blockchain.

  3. Your wallet finds an average fee to get your transaction posted within a reasonable amount of time. Some wallets allow for customizable fees depending on user input.

  4. To increase the privacy of transaction using the notion of inputs and outputs if someone know your public address you could open a new wallet and send funds from current wallet to your new wallet.

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#339

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are as of yet unspent monies that are received from a transaction.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple inputs can be used to reach the transaction amount.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A wallet would use a ‘reasonable’ fee based on existing transaction fees.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Using multiple inputs and multiple outputs obscures the transaction so that it would be hard to understand.

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#340

Your wallet will first try to combine multiple smaller utxo’s to cover the amount. Only if the sum of all your available utxo’s aren’t enough to cover the amount, the transaction will be invalid

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