Homework on Bitcoin Transactions and UTXO - Questions

[cryptopastor]

1. UTXOs are balances that are left over after transactions
2. Combine multiple UTXos
3. The wallet will propose a fee after it queries the blockchain to see what fee will get your transaction processes quickly. The fee is not specifically called out. It is the difference between the outputs and the remaining inputs.
4. You can use multiple inputs and outputs to create a hard to follow chain of transactions.

[Haysoose]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   a list of transactions your wallet has received, but not spent.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   The transaction fails.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The difference between inputs and outputs.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   It constantly changes the address of the holder of the UTXOs and private keys.

[cryptonovice]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   The inputs received by a recipient or recipients that have yet to be spent.
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 take place
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   Sum of inputs - sum of outputs = Transaction fee
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Multiple inputs and outputs

[Alko89]

@lionayd

Then the transaction would be invalid, and would not be sent to the blockchain.

@Haysoose

The transaction fails.

@cryptonovice

The transaction would not take place

You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then the tx would fail.

[Boshty]

1.) UTXO’s are unspent outputs of the previous transaction.

2.) the transaction would not be confirmed if there is not enough UTXO’s in the wallet

3.) It would either generate a fee based on previous transactions or it would take the difference between the input and output.

4.) By having multiple outputs

[abi]

1. UTXO refers to the an incoming transaction that has not been used by the receiver in an outgoing transaction.

2. you would have to use as many UTXOs as needed to cover the outgoing transaction and the difference (minus fee, see 3) is sent back to you.

3. The fee is automatically calculated as the difference between inputs (UTXOs used for the transanction) and outputs. Outputs include the remainder of the UTXOs used to cover the transaction that is send back to the user. That becomes another UTXO.

4. use a new address for the remainder of the transaction that goes back to you/

[cherryknot]

1. The balance of the wallet from your previous inputs.
2. Use more than one utxo.
3. The difference between inputs and outputs.
4. Use different addresses.

[Toddness]

1. UTXOs are your inputs, the balances that your private key can spend when ready to do so.
2. You would use another UTXO. The balance less the fees you send back to your self in the output as the change.
3. The wallet would look previous fees attached to the UXTOs to estimate the new fees, and it would be implied by the balance between inputs and outputs in the transaction.
4. You could send a group of inputs to another wallet address as 1 output.

[keshara]

UTXOs are unspent outputs left over from the previous transaction.

The transaction would be denied because there would not be enough UTXOs to meet the amount needed to make the transaction.

The fee is the remainder of all inputs minus the outputs of a transaction.

To increase privacy you could create a different address for each transaction received since no one would know to whom they belong.

[Anthony_Ramos]

1. UTXOs are unspent inputs from previous transactions that make up your balance provided by your wallet

2. The transaction will be rejected

3. transaction fee is determined by calculating output by UTXO input

4. by use of your private key and multiple output addresses.

[Alko89]

@Anthony_Ramos

The transaction will be rejected

You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then the tx would be rejected.

@Anthony_Ramos

transaction fee is determined by calculating output by UTXO input

Its the difference between inputs and outputs.

[Tamara]

• Describe what Unspent Transaction Outputs (UTXO) are.

Those are funds that are sent to your wallet. In other words, balance at your wallet account which you can spend in transactions.

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

This transaction would not be possible. It would not go through.

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

Input=output + TX fee so Fee=Input-Output

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

By creating more addresses.

[Art_Small]

Bitcoin Basics

1. Describe what Unspent Transaction Outputs (UTXO) are. - They are the amount of BTC or whatever coin you are trading that you have available to spend.

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

3. How would a bitcoin wallet specify the transaction fee when creating a transaction? - Take the input - the output and that would leave you with your transaction fee.

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

[AKotell]

Understood. Much appreciated.

[henriku]

1. it means the balance (available outputs) that can be used for a transaction from your wallet.
2. the transaction won’t go through. input = output + fees
   3.the wallet communicates with the blockchain for the access fee. Some wallets would let you chose the best process for you.
3. use multiple output addresses

[tanu_g]

Describe what Unspent Transaction Outputs (UTXO) are.

UTXO is the output of a transaction allocated to you to spend.

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

If a single UTXO is unable to cover a large transaction then your wallet will consider the multiple UTXOs to cover it up.

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

A transaction fee is calculated as the difference between input and output.
A wallet proposes a fee based on the previous transactions in the blockchain.

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

By using various outputs to represent a transaction. Also, a user can send BTC back to himself via a different bitcoin address.

[Alko89]

@Art_Small

They are the amount of BTC or whatever coin you are trading that you have available to spend.

The sum of all your UTXOs is the balance.

@Tamara

This transaction would not be possible. It would not go through.

@Art_Small

Your transaction will fail.

@henriku

the transaction won’t go through. input = output + fees

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

[sibor]

1. It is the money you have available in your wallet for use in new transactions

2. It must be used several UTXOs which together are larger than your new transaction

3. It will calculate how large the transaction fee for the whole transaction will be, and ensure that there is enough available UTXO to complete the transaction.

4. The information about where you have received and sent the UTXO isn’t visible or accessible for other people

[Thomas_Plank]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXO’s are the outputs of transactions your wallet,which is addressable by your keys, has received.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaciton?
   Several UTXO’s would be considered which exceed the sum. It is very likely that some of your money will be returned in that same transaction.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   In the video it was said that the difference of the whole output amount and the whole input amount is the fee.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Some wallets can be assciated with more than one public key. One could increase privacy by sending and receiving from diferrent adresses.

[bulletfingers]

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

UTXO is unspent transaction fee. Instead of the blockchain storing the balance for each private key, it stores UTXOs which could be added together to find every private key balance. UTXO can be used to create new transactions.

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

Then you could use multiple UTXOs

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

It takes the total UTXOs used to pay for something minus the cost minus the change you want to get back = fees. So it doesn’t specify the fee directly, it specifies the other 3 variables and fee is implicit.

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

You could send money back to yourself after using UTXOs that sum to more than the cost of the transaction, in that case there would be two new generated UTXOs, one would be the cost of the transaction, the other would be change sent back to you. It would not be clear to some external viewer which is which.