Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#3744

The sum of all available UTXOs is the balance.

You can use multiple UTXOs as inputs to a new tx.

Not sure why making more txs would help. Not reusing addresses is sufficient. :slight_smile:

#3745

Most modern wallets do this for you behind the scenes. Where this becomes important is in case you would like to create a raw tx yourself.

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#3746

It does if he knows your address.

Government agencies can request access to these data if they need to.

#3747 
1. Describe what Unspent Transaction Outputs (UTXO) are.
	○ If you have inputs that are not spent - those are UTXOs
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
	○ You need to get more inputs in order to make the transaction
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
	○ Inputs = outputs + txn fee
	○ your wallet will check with the blockchain and propose a fee that would get the transaction into the blockchain in a reasonable time and reasonable cost.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
	○Using multiple output addresses, where multiple can be your own.
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#3748
  1. Summ of UTXO is the balance that you have in your wallet.
  2. The transaction would not be verified. Declined.
  3. Imput-output=fee
    4.From the outside it is impossible to know which output went where, you can send it to others or to yourself. You can use multiple addresses.
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#3749

  • Describe what Unspent Transaction Outputs (UTXO) are.
    They are essentially the total sum of unspent funds allocated to your wallet.

  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The transaction will not process if there is not enough UXTO to cover the transaction + fees.

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It would show the sum of all inputs minus the output.

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

Since you are unable to see exactly who the output tx goes to personally, you can create any number of outputs to increase anonymity

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#3750

a) Describe what Unspent Transaction Outputs (UTXO) are.
UTXO are unspent transactions

b) What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Rejected transaction will occur.

c) How would a bitcoin wallet specify the transaction fee when creating a transaction? The difference between input and outputs, the wallet will determine the proper fee.

d) How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?Using different addresses.

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#3751
  1. UTXO’s are the unspent funds in the wallet.
  2. The transaction wouldn’t happen.
  3. The transaction fee is the input minus the output.
  4. Funds can be sent back to the sender in different wallets without anyone knowing.
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#3752
  1. UTXOs are outputs from a previous transaction that are available on your wallet and have not been spent. The sum of these unspent transactions designate the balance of he wallet.
  2. The wallet will get together enough UTXO’s into one that is large enough to cover the transaction and the fees or it would be rejected because of insufficient balance.
  3. The bitcoin wallet can recommend an amount to pay for transactions fees depending on the amount being transacting, because the higher the transaction fee the faster the transaction will be verified. Many wallets allow to choose your own fee amount.
  4. Privacy can be increased by using multiple addresses for the recipients (including yourself).
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#3753

  1. Describe what unspent transaction outputs (utxo) are
    Utxo is the unspent incoming transactions which your wallet can use to create transactions

  2. What would happen if you don’t have any single utxo that is large enough to cover for your transaction?
    Your wallet will add more utxos until it can cover the output and send the change back to you

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

It looks at the recent transactions on the blockchain and calculates a fee which is high enough for you to get in the blockchain or with some wallets you can manually set the fee

  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You could use your utxos and forward it to an other wallet that you own too
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#3754 
Describe what Unspent Transaction Outputs (UTXO) are.

UTXO are your unspent incoming transactions or your “account” balance

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

Your wallet would construct a transaction with multiple UTXOs to cover what is being sent out and then return any change to you.

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

A transaction fee would be the difference between the input and the output. Also could be manually selected or calculated off of current fees paid as to get on the blockchain faster.

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

Using multiple output addresses for recipients to include yourself could help add privacy to transactions.

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#3755

You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then your tx would be declined. :slight_smile:

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#3756

Fee is not set based on the amount transfered. You can send large or small amounts with the same fee and would be treated with the same priority.
The fee is influenced based on the complexity of the transaction (or its size), for example if the tx contains more inputs or outputs than it would require more B (bytes) to be stored on the blockchain therefore require larger fee to get processed faster.
This is why miners pick transactions based on the sat/B ratio because a large amount of sats with a small B footprint tx would be most profitable based on the available block space. :slight_smile:

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#3757
  1. Describe what Unspent Transaction Outputs (UTXO) are. UTXOs are the outputs from transactions “sent” to a wallet that unspent. A wallet performs the function of checking the blockchain to determine all of the UTXOs that apply to it, in order to calculate that wallet’s balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? The wallet would look for sufficient UTXOs to construct the transaction.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? The fee is the difference between outputs and inputs.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? For a given transaction one could use multiple inputs and outputs, including sending back to one’s own wallet or wallets.
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#3758

Ah, yes. I wonder why they would need to… In case of suspected criminal activity?

#3759

1.- The UTXOs are outputs that you revievedm but you´re not using the value that you receive in the transaction.

2.- You can use many UTXOs to cover the amount if the transaction. If you still have less money ro cover the transaction, so the transaction will not be succesfull

3.- The fee are the difference between the output and the imput

4.- Use different adresses for every transaction

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#3760
  1. A UTXO is a bit of ledger that says a wallet received a certain amount of currency. The sum of a wallet’s UTXOs is the total balance that the wallet is #HODLing :slight_smile:
  2. It doesn’t matter if one UTXO isn’t big enough for a new transaction. What is important is that the sum of a wallet’s UTXOs is greater than the new transaction. If the balance of UTXOs is greater than the new transaction, the transaction will be accepted by nodes and a miner will add it to the block. If the balnace of UTXOs is less than the new transaction’s amount, the transaction will be declined.
  3. The transaction fee is calculated by the inputs minus the outputs.
  4. To increase privacy, an individual could use multiple or new wallets to change the addresses. The blockchain shows sender and receiver info as random numbers and letters. So if those random numbers and letters keep changing, you will be untraceable. If you never change your address, then all transactions with your address can be highlighted and investigated–this focus on your wallet address could possibly lead to your irl identity being uncovered.
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#3761

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are the input transaction of your crypto that you have not yet used as an output transaction.

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Fees are generated by looking at previous transaction fees and using the most reasonable fee to achieve a reasonably fast transaction.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By creating multiple addresses, including other wallets of your own other than the one you’re sending from.

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#3762

1- UTXOs = unspent transaction outputs from previous transaction.
2- The transaction would not go through.
3- Fee = input minus output.
4- A new address is created for each new transaction.

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#3763
  1. The total value of your wallet

2.The miners will decline your transaction and it would be invalidated

  1. Wallet will automatically calculate this.

  2. Use several addresses to increase privacy

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