- UTXO is an Unspent Transaction Output, so it is the amount of a transaction I have received. It is an Output of a previus transaction who has not become an Input yet, as I have not used it to construct a new transaction.
- The wallet will sum different UTXOs until he covers up the entire amount.ù
- INPUT= TX fees + OUTPUT
- I can generate multiple addresses in my wallet and I will have multiple Output addresses, so it is hard to tell which output goes back to the sender and I
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1- an unspent transaction output (UTXO) is an abstraction of electronic money. …
A UTXO defines an output of a blockchain transaction that has not been spent, i.e.
used as an input in a new transaction. Bitcoin is the most famous example of a cryptocurrency that uses the UTXO model.
2 - the transaction will fail.
3 input - output
4 create new addresses to the output
1.Describe what Unspent Transaction Outputs (UTXO) are.
It is unspent value of BTC that you own based on your private key. All UTXO are stored on blockchain.
2.What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet would look for all of your UTXOs and create a transaction which has to cover output and also TX fees. If there is not enough cover from the input the TX would not be created by the wallet.
3.How would a bitcoin wallet specify the transaction fee when creating a transaction?
It would recommend a fee based on the situation in the network.
4.How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You could increase your privacy by having many wallets. And by storing PK on the hardware wallet as Ledger Nano S.
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are transactions outputs that have not been spent in a new transaction. In other words unspent BTC.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Sum inputs = Sum outputs + tx fee. Otherwise the transaction will be rejected by the nodes of the network.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
It checks previous transaction fees on the network and determine the best fee at reasonable speed.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
A wallet controls many different addresses. Therefore someone can create transactions where input and output addresses are controlled by the same person.
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- Unspent Transaction Outputs ( UTXO ) are all the spendable outputs for a given address available to be used in new transactions.
- Depends … Transaction will not be accepted and it would not be able to be posted on the blockchain . Or it would combine multiple UTXOs (if available) in order to make the transaction possible.
- Depends on the wallet . If you can’t specify amount you wish to pay for the transaction and choose wallet to generate fee for you it would pick a fee that was previously used for similar amount … its is constantly changing depends on network condition .
- I think this is a catchy question , The only true way it would be by simply having your private keys in so called “cold wallet” . Or am I missing something . Even if you create multiple wallets like many suggest they are on centralized network they are still vulnerable …
Looking for feedback on this one please …
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UTXOs are the amount of BTC in your wallet and that can be spent.
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If you don’t have any single UTXO that is large enough to cover for your transaction, you can sum up the UTXOs that you have, then if there is change, it will be sent back to your wallet. If you don’t have any more UTXOs then you wouldn’t be able to cover the transaction, and will not be taken into consideration by nodes on the network.
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The BTC wallet would take into consideration previous transaction fees, and give you an optimized fee for a relatively fast transaction. If you want to calculate what was the fee of a transaction you do total of inputs - total outputs.
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You could use notion of transaction inputs and outputs to increase privacy in your transactions by increasing the amount of outputs, adding different addresses that you control plus the addresses you don’t control.
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1. Describe what Unspent Transaction Outputs (UTXO) are.
The UTXO represent the information on the Blockchain that tells how much coins does a specific Private Key has. They are the Inputs of the transaction that become Outputs.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
First case scenario:
- If you want to spent more than you have, the transaction will not be possible.
Second case scenario:
- If you have multiple UTXOs corresponding to your Private Key;
- Your Wallet that stores your Private Key will calculate how much UTXOs you have in total;
- The wallet will Sign the TX for the total amount of UTXOs;
- The amount you want to spend will be directed to the entity you want it to, the rest will be sent back to you and the corresponding fee of the TX will be spent.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The Wallet will look at the Blockchain, identify the latest fees and it will automatically Propose a fee that it will get your transaction faster in the Blockchain. On some wallets you can chose the Fee that you want to spent.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Not completely sure if the answer is correct.
Looking from outside on the Transactions inside the Blocks of the Blockchain, you can notice the INPUTS and the OUTPUTS. However, due to the Hashing Functions you can’t tell precisely to whom the transactions went or where did it came from.
Being forced to “spent” all of your coins in a Transaction, the requested amount will go to the entity you have sent it to and the rest will be sent back to you.
Websites tracking the Blockchain will GUESS what Transactions were transacted and which ones came back to you. In this situation not even the tracking websites can’t tell where transactions went exactly.
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Homework on Bitcoin Transactions and UTXO - Questions
- Describe what Unspent Transaction Outputs (UTXO) are.
Every input that you have received, but you haven’t used in a transaction yet.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
- I never tried it, but I even think that the wallet will not make this transaction possible, and communicate to you that you don’t have enough UTXO’s to spent your new transaction.
- Your Transaction will not be validated by the network of nodes.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
A bitcoin wallet can suggest you a transaction fee that is common for the same type of transactions, or some wallets ask you if it’s a transaction of low and high priority. Transactions with higher priority will be confirmed with priority by the network. As miners will add your transaction with priority to a block.
The fee is the Input - Output. You can check this on the block explorers, for ex. blockchain.com
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
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Outputs and inputs are anonyme. The only thing you can see is an adress.
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Since you have to spend all UTXO’s in 1 transaction, it’s difficult to check how much you really spent, or if you send the new transaction to yourself of just o proportion of it. Blockexplorers, can give an estimation of the transaction that is really spent.
- Unspent Transaction Outputs are inputs received from a previous transaction and that haven’t been staged for a new one.
- My wallet tracks and lists all the UTXOs available (like a balance) which will allow me to send the number of UTXOs necessary to cover my transaction and the Blockchain will automatically send me the excess output
- It can either ask me the level of priority I want for the transaction (low or high) or it can propose me an average fee after finding fee trends on the Blockchain
- Inputs and outputs are not attached to any name. They are addresses, nothing more. We can track all these transactions but we can’t know what they were created for.
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- Unspent Transaction outputs are balances in a wallet that are not spent yet.
- The transaction would not be accepted if not enough UTXO’s
- The Hosted wallet i.e. Coinbase , Binance or Blockchain checks the balance and figures out the correct fee.
- By creating different output transactions.
- UTXO is the amount of inputs of btc that is not spend (output).
- Transaction will be suspend.
- Input minus output
- Sending back BTC to me as part of the tranaction (different PK)
- Describe what Unspent Transaction Outputs (UTXO) are.
Transactions you have received and can be spend. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Transaction will not be valid, blockchain will decline your transaction. Your wallet will combine UTXOs to construct transaction. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
Fee=input-output. A bitcoin wallet recommend a reasonable fee, bases on the current and previous transaction fees. You can choos the fee manually. - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By sending the output to a diferent addresses. From outside it is impossible to know, where the transactions went.
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Answers:
- The UTXOs is your balance of Bitcoin that you can spend.
- You would have to make transaction small enough to be covered.
- It would do it automatically or use last estimate of fees.
- By sending to different addresses and some can be yours.
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UTXOs are transaction they are notified from your wallet and not spend yet.
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The transaction will be refused from the network.
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Transaction fees depend on network condition and transaction size.
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By using always new addresses for incoming amounts.
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UTXO in a way is the money Your wallet can spend.
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The transaction would not happen
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UTXO input - UTXO output = fee
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use several inputs and outputs. maybe even add a transaction to yourself to mix it up even more.
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UTXOs are transactions that our public key has received and can be spent with the use of private key.
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UTXOs can be summed up to cover the amount of the transaction plus the fees. If all the UTXOs can’t cover the amount of the transaction, it is then impossible to spend it.
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Simple : output minus input
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By using several wallets and mixing inputs and outputs
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Many people didn’t understand the question.
What would happen if you don’t have any SINGLE UTXO that is large enough to cover for your transaction?
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