1 UTXOs are money sent from someone to your wallet
2 your wallet will add up all UTXOs you have to spend and if it is enough the transaction will go through
3 input- output = fee
4
Thanx for that Alko89 
I see my mistake where i say transactions i mean outputs… in my head paying someone is a transaction in this case only part of …
What happened to the final question? 
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Describe what Unspent Transaction Outputs (UTXO) are.
It is like when I was a child and my mom gives me money for the weekend, but not giving to me. She says u own 2euros, u can spend it. In that moment, those 2 euros were UTXOs for me and I was the wallet. I spent 1.5 euros buying candies.
So, those 1.5 euros become UTXO for the man of the store, and, as we now, I have to spend every inputs, thus 0.5 euros convert in to UTXO. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If I have more UTXOs, I can use them as inputs, maybe i will need 3 inputs to 1 output -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Inputs = Outputs + TXfees -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
I can fraction it in multiples outputs to be more difficult to follow
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- Describe what Unspent Transaction Outputs (UTXO) are.
The blockchain is made up of transactions. Transactions are made up of inputs and outputs. Transaction inputs come from older transaction outputs. If an output hasn’t been used in a new transaction, it’s an unspent transaction output (UTXO). The blockchain stores a list of all UTXOs. So wallets can get the UTXOs from the blockchain and calculate your wallet balance. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet would use multiple UTXOs to create the transaction. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
The transaction fee is the difference between the outputs and the inputs. - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can direct some funds back to yourself and it’s impossible to know which transaction outputs are really transactions.
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Unspent transaction outputs are you have received and not spent yet.
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Then it will use enough to cover all outputs and fees.
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The wallet would specify the transaction fee by the difference in the input and output.
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It can increase privacy by using multiple inputs and outputs.
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- They are what make up the beginning and the end of each transaction to keep the ledger balanced.
- Another UTXO will be found to balance the transaction.
- The wallet would calculate the difference between the UTXO and the Inputs.
- By using many different inputs and outputs for each transaction.
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- Describe what Unspent Transaction Outputs (UTXO) are.
a. It’s the amount of received transactions that are ready for spending
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
a. In order to complete the transaction, it will sum up possible other UTXOs to validate the
transaction.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
a. The calculation of the fee is the difference between the input and output transaction, However
when requesting a transaction you can choose a higher fee for higher transaction speed or
lower fee for reducing overall cost.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
a. Using multiple bitcoin addresses allows you to isolate each transaction, reducing the possibility
of transactional association of the same address.
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UTXOs are outputs from other transactions that the recipient has not yet used as an output in other transactions.
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One would not be able to make the transaction.
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The bitcoin wallet specifies the fee according to current fees that were paid in the blockchain. The wallet will choose the amount of fee to get the transaction added to a block and approved fast enough. In this case, enough means that the wallet will bring the cost and speed into the fee equation. Then the transaction will have a reasonable cost and time to get approved.
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One could increase the privacy of a transaction by sending the ‘change’ back to oneself while using a different address in a single wallet.
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- Describe what Unspent Transaction Outputs (UTXO) are.
- Total BTC/satoshi value received in a wallet
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
- Output is input + fees, meaning failed transaction
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
- Wallets calculate the fee by looking at the amount of “traffic” (how many unconfirmed transactions in the mempool are), and how quickly they get picked up depending on the transaction fee (the higher the fee, the faster the transaction). If your wallet offer you fee ranges e.g. 0< fee <1 satoshi or 1< fee <2 satoshi then you can potentially choose a range which is cheap for you (the fee range is calculated based on the present miner rates), but this might delay the transaction or the wallet can choose a fee based on the current miner fees to speed up things.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
- I would utilise multiple non registered wallet addresses to spread my BTCs (assuming that the other addresses are not registered in any exchange) e.g. registered wallet A send BTC to unregistered wallet B,C,D
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are what are received from previous transactions, they are made up of inputs that are received from senders. Wallets use your private key to track your UTXOs and sum up your balance. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet would sum up your total UTXOs and send all of your UTXOs as an output, part of this output would be sent to the sender, part would be sent back to you and part would be the transaction fee. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
It wouldn’t specify the transaction fee, the transaction fee is the difference between inputs and outputs. Some wallets will let you choose your own transaction fee amount but most wallets will check the blockchain to choose a fee that is good enough to put your transaction into the blockchain quickly enough and then propose this fee to you. - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Use different addresses to receive the remainder of a transaction. Some output from a transaction can be sent back to yourself but no one else will be able to tell whether this is the case from the outside.
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Describe what Unspent Transaction Outputs (UTXO) are.
They are the the unspent transactions that are going into your bitcoin wallet. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet sums the total UTXO inputs. If that sum is not enough then the transaction wont take place. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
The transaction fee is automatically deducted when a transaction takes place. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You don’t need to use the same address for every transaction. You are able to send all your bitcoin to a wallet you own on a different address making it harder to identify the individuals in the transactions.
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A transaction that has been received which can total up to be used a blance
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It will use the neccessary amount of UTXO’s needed to cover the transaction and will send back to your wallet the new UTXO balance
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Input - output ='s fee
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Its difficult to tell which transaction is being used and sent back to wallet as new addresse are generated
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXO are output transactions waiting to be received and then spent as a wallet input. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet would sum up your individual UTXO’s, execute the transaction, minus the fees and return your change as a UTXO waiting to be input. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
By querying the network to find the best price to get the transaction on the network. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
The privacy key provides amenity to possession. The ledger is transparent in how much is sent to a single public key, or multiple public keys, but not who has possession of the private key/keys.
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- It is the unspent output from a previous transaction which is essentially the Wallet balance.
- UTXO’s from multiple transactions are added up together so that it is large enough to Cover the transaction.
- The wallets looks at the blockchain and works out how much fee previous transactions paid and tries to work out the fee amount which will get the transaction processed fast enough.
- In a transaction there are often multiple outputs which makes it difficult to determine from an outsider’s perspective on which output is the real transactions, since some transactions are just going back to the sender to ensure input = output + transaction fee.
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The sum of all your available UTXOs is your balance.
You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough, then the tx will fail.
UTXOs are used as inputs to a new tx and you don’t need to use all of them, just as much as you need to fund the tx.
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Describe what Unspent Transaction Outputs (UTXO) are.
A wallet’s balance. Transactions it has received and not yet spent. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Instead of invalidating the transaction, it will calculate the sum of other UTXO’s to execute the transaction. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
It will add up to slightly less than the UTXO’s input. The difference between the two is the transaction fee. Fee = Input - Output -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By creating multiple outputs, it increases the privacy between accounts.
@Alko89 I see you liking my posts <3. Maybe you can answer this for me (or someone else reading this) - I still don’t understand the concept of having to spend your UTXO’s. Why am I buying Bitcoin if I have to sell the exact amount I buy? Can’t I just hold onto the coins and invest/build wealth?
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You can spend the exact amount you want its just that you have to use your entire UTXO and you send the remaining balance back to yourself. This is how Bitcoin keeps its immutability. Because if you could spend only a portion of your UTXO that would mean you would have to update the balance on the blockchain and that is impossible.
From the perspective of the user the wallet handles this for him in the background and he doesn’t notice these processes. Here we are explaining how this things work behind the scenes.
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