Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#3602
  1. Describe what Unspent Transaction Outputs (UTXO) are. One full value left inside a wallet. Like having an exact 100$ bill every time.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Well, I guess its stuck until fees go down or you use L2 solution or add more btc to your UTXO.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? Dependent on the strain on the blockchain (fees). But its just like handing a cashier all your money, they make change and they pay themself for the fee of doing the math. They meaning the miner/cashier.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? Just make another wallet and keep it private AND OFF SOCIAL MEDIA. haha
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#3603

1…An UTXO is available transactions that have been received from any source and that can be spent.

  1. Since everything can be verified, the transaction would not go through.

  2. Actually the wallet calculates the fee based on the input minus the output.

  3. It is difficult to trace transactions if they come from different addresses or wallets. This way it is almost impossible to determine where the owner is which creates obscurity.

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#3604

1: Describe what Unspent Transaction Outputs (UTXO) are.
Every Input to my Bitcoin Adress which is not yet used in a transaction is an UTXO. So basically it is unspent BTC. The wallet software takes these UTXOs and sums them up to my balance of BTC which I own.

2: What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
It would not be possible to conduct that transaction.The transaction would be rejected.

3: How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet pics a transaction fee which would be high enough to get the transaction executed in a reasonable time. When the transaction is executed, the difference between the input and output is the transaction fee used for the transaction.

4: How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
If you use a different adresses for each receiving transaction. That makes it difficult from the outside to tell the sum of UTXOs of you, because someone need to know all the receiving addresses to sum up the UTXOs.

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#3605

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. :slight_smile:

#3606

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO it is the balance unspent left in your wallet.

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is the difference between the transaction inputs and transaction outputs. Also, when sending a transaction, you can choose the fee manually in an attempt to expedite the transaction speed or save more by reducing the amount of the fee, thereby potentially reducing transaction speed.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Make use of different addresses when you want to receive something.

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#3607
  1. UTXOs is balance that is unspent and left for spending in your wallet.
  2. Transaction would not go through because there is not enought balance
  3. Normally wallet pics a transaction fee automaticly that it is high enought to that transaction go through. After transaction the transaction fee is the difference between the input and output.
  4. Using different addresses for each receiving transaction.
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#3608

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are basically unspent BTC that i have received and are sitting in my wallet.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    I will have to create a transaction using multiple UTXOs and sent back to my wallet what is left - the fees.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A transaction fee its created by the blockchain. The amount can varies but it will usually be similar to the last transaction fee on the blockchain.

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

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#3609

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are unspent outputs of a transaction, AKA balance of a previous transaction

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    the transaction would be declined. But you can always add another UTXO to cover the cost

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    By calculating the difference between the inputs and outputs of a transaction

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    by multiple input and output addresses.

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#3610

The sum of all your 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 would be invalid. :slight_smile:

#3611
  1. The transaction sent to my address, the input with the value that allows me to send transactions with the same value.
  2. You cant make the transaction, you dont have the money.
  3. By bk size, doing an average of previous fees.
  4. Creating different addresses, one can be traced to you, but nobody can say when you are sending to another, if its really another person, or its just another address you have.
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#3612

I suppose multiple UTXO’s would work. Never had to figure out how to do that, gladly.

#3613

  1. UTXO’s are transactions that were sent to you that can be used as inputs to perform another transaction.

  2. You group smaller UTXO’s until it is => than the amount needed plus fees, if it is more than what is needed you send the remainder to an address also controlled by you.

  3. Some wallets allow you to choose different options others calculate a fee that will get your transaction mined soon enough.

  4. Increase the number of inputs by using more UTXO’s than necessary and increase number of outputs by sending your change back to yourself in multiple outputs.

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#3614

1 Balance left in your wallet
2 No UTXO = No transaction
3 Will be the difference between the inputs and outputs, this is show in the wallet
4 Many addresses can be created with inputs and outputs

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#3615

Describe what Unspent Transaction Outputs (UTXO) are.
UTXO are transactions you’ve received that you can use to do your own transactions. When a new TX is made with the UTXO the old output becomes the new input.

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction would be declined if your UTXO is not large enough to cover it.In this case you will need to put two UTXO or more together to reach the wanted number. If the number gets larger than what you need to send you will have to do an extra input to send the fee back to yourself.

How would a bitcoin wallet specify the transaction fee when creating a transaction?
The difference between input and output!

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Always generate new addresses, especially the outputs, so that it is hard to tell which output goes back to the sender.

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#3616

The sum of all your UTXOs is your balance.

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

#3617

Modern wallets combine UTXOs for you behind the scenes already. If you were to make a raw tx yourself then you would need to put this into account. :slight_smile:

#3618

Describe what Unspent Transaction Outputs (UTXO) are.

UTXO:

  • Received bitcoins (transactions) before you use them
  • Sent bitcoins before they are used further

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

You / The wallet would have to check if you have any other utxo left to sum up. If not, the transaction would be rejected.

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

Fee = Input - Output

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

You could create an output to multiple adresses that are all controlled by yourself.

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#3619
  1. The sum of all UTXO is the actual wallet balance.

2.The transaction would be disclaim.

  1. Thru the difference in the amount of all inputs and outputs.

  2. You can increase the number of outputs to make tracking transactions more difficult since addresses hold no personal information or using new address every time.

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#3620
  1. UTXO are yet unspend funds of a past transactions
  2. The transaction will not happen, because it gets no verification from the blockchain
  3. Inputs - Outputs = Transaction Fee
  4. Having multiple wallets and spread funds within one transaction over your own wallet network
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#3621

1.UTXO’s are used by your wallet to construct transactions. They basically show how much bitcoin you ca spend.
2. The transaction will be invalid.
3. Fees=Inputs-Outputs
4.Use different addresses when receiving something.

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