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Your wallet searches for UTXOs on the blockchain from transactions that are sent to you and are then used to spend your money during transactions.
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Your wallet will add up multiple UTXOs to complete a transaction where one UTXO may not be enough money to complete a particular transaction that would include the additional mining fees that go along with spending a transaction.
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The bitcoin wallet specifies the fee by subtracting the output by the input equalling the fee.
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By using numerous addresses as inputs and outputs, the privacy will increase in transactions.
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UTXO’s are data sets which describe available funds sent to a particular wallet address. These data sets are stored on the blockchain until they are retrieved by the users wallet.
The wallet adds all single UTXO’s together to create a sum. This entire sum must be spent in the transaction. If there is a balance the user sends that balance back to a wallet address that is owned by the user.
A bitcoin wallet scans the blockchain to determine a transaction fee that will facilitate a reasonable transaction time. This fee is deducted from the sum of UTXO’s in the user’s wallet when the transaction is initiated.
The inputs and outputs do not specifically the identify of users. They can be viewed only as wallet addresses in a blockchain analysis. However I believe that now sophisticated blockchain analysis can expose a user’s identity.
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UTXOs are incoming transactions that have gone to your wallet that haven’t been spent yet.
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If a single UTXO can’t cover the transaction additional UTXOs would be added.
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Your wallet will check with the blockchain to find a reasonable fee based on latest history.
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You could use multiple wallet addresses to create more privacy in the transaction.
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UTXOs are the previous transactions that are unspent.
The Transaction would be declined.
(Remainder of all inputs)-(output transaction)=fee
using many outputs will help hide who you are sending the BTC to even if all the addresses are you.
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- UTXO’s are unspent transactions that your wallet tracks. Essentially your wallet doesn’t store anything (except your private keys) but what it does do it track and keep record of all of your input amounts which are then referred to as UTXO’s until a time when they become an output/ spent.
- You will have to send a larger amount and construct the transaction in such a way that you get some BTC back. Similar to paying for something with a large fiat bill and receiving change.
- The fee is the difference between the inputs sent and the outputs required?
- By sending BTC to yourself anonymously. No-one watching the block would ever be able to know that this is what is happening.
Guys,
If you have made if this far I have quite a few questions on this lesson and it would be great if you could help me.
Firstly, it sound to be like BTC fees can become really quite expensive? In my limited exposure to BTC I don’t recall the fees being anymore than negligible? Have I simply not been noticing how large they really are?
Also, whenever I have sent BTC I have never had to construct my transaction in such a way to send a certain amount of BTC to my recipient, and send the remainder of the original input back to myself. Is this simply something that perhaps my wallet has been doing automatically for me?
And lastly, whilst I see an abundance of benefits of the anonymity that BTC provides, but doesn’t that also imply that governments and bad agents will also have this same anonymity? My point being that yes it’s great that we can track the blockchain, but without accountability it just seems to be like BTC would create even more opportunities for governments, multi-national cooperation’s etc, to embezzle funds, manipulate markets, and corrupt economic systems.
I will really look forward to people’s thought on these queries.
Thanks in advance.
Unspent transaction outputs equals utxo remains balance basically
The transaction would be invalid
Input minus output would be your transaction fee by definition but in most cases a set fee based on similar transactions I believe
Use different addresses diversify
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- UTXOs are unspent outputs of the previous transaction.
- The transaction would be invalid.
- The fee is calculated from the remainder of all inputs subtracted by the outputs of a transaction.
- Use a different address for each transaction.
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1.UTXO are the data from the previous transaction. All the different UTXO´s that have been sent to our wallet shows the balance in our account.
2. The UTXO will be denied by the miners.
3. By adding all the the inputs together - the total outputs.
4. By adding more output adresses, and having more output adresses. More adresses= More anonymity…
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- all the funds you been receive in the past and that you dont spend yet.
2.no transactions, for make a transaction of 1 btc you need UTXO of 1BTC+Fess in fact you can send less than 1 btc because you dont have more.
3.Input-Output= TX fee
i think maybe i dont understand the last question if someone can check if i right i appreciate this 
4.nobody can know to who the outputs are belong, but the wallet also use different address for yours Private Key.
the role of the wallet its to track and identify your UTXO
(unspend BTC) that your Private key get in the past and how much can spend now .after this when you send your UTXO for someone your wallet construct a new transaction
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- UTXO are put simply you balance in your wallet.
- Then the transaction cannot be performed since you also need to consider the mining fee.
- Input = Output + Fee
- Make sure to have several wallets as you will need to send the complete input and then you can specify the “change” to land in several other wallets controlled by yourself.
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You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then your tx would be declined. 
It kind of depends when you are using the network. ATM the Bitcoin network isn’t really congested much and you can make txs cheap. I made one for 5 Sat/B recently, though it did took 2 days to confirm 
https://blockstream.info/tx/29e4b4a7d035b8d53187ffc5597b6755b3af6e9aac2e7f5d7086159898508a37
Yes most modern wallets do this behind the scenes. When you would need to put this into consideration is in case you would be constructing a raw tx by yourself.
The blockchain is technically pseudo anonymous, meaning its private as long as you can’t link the address to a physical entity. Governments could have a public address that everyone can then check what is going on with it in explorer.
- UTXO is the balance left in the wallet.
- The transaction will be declined.
- Fee is the difference between inputs and outputs.
- Make use of different addresses when receiving transactions.
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- UTXOs are unspent transactions and they create wallet ballance.
- Wallet will combine all UTXOs to cover that transaction.
- It will check previews fees and adjust accordingly (or you can set it manualy in some wallets).
- I can send transactions to myself.It will look like spent BTC (transaction signed to another address). Its possible to make it multiple times, but fees hurt
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXO is the balance in your wallet (unspent)
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
No transaction.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
Fee=Imput - Output
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By generating many diferent output addresses from one imput
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- A UTXO is the amount of currency remaining after a transaction is executed.
- The transaction would not get mined/confirmed.
- Transaction fee is the input minus output. The wallet also looks at recent transaction fees on the blockchain and figures out a fee, which would be high enough to pass.
- Use multiple adresses or even use every adress only once.
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- UTXOs are the the transactions that are sent and hasn’t been utilized yet
- The needed amount would be sent from a sum of inputs for a transaction and the rest would be sent back to your wallet
- inputs=outputs+tx fees. Wallet would give you an option of different fees and timeframe when the transaction will be excecuted,based on the recent transactions
- By diversifying you adresses
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- Describe what Unspent Transaction Outputs (UTXO) are.
Its the record of unused inputs.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
I wouldn’t be able to make a transaction.
- 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?
Have more than 1 wallet address to transact with
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- UTXO is a unspent input from previous transaction that has been sent to you.
- It would be rejected because blockhain would present the information to nodes that you don’t have enough (inputs) to cover the amount of output.
3 By simple math Total input - total output = transaction fee, also your wallet defines it you don’t have to do it yourself - I am not sure if I am correct cause the question seems a bit confusing me, but if we can not see who sent to whom the transaction so you could use different transactions address in that sense.
But then if someone wanna help me and explain how do we create different addresses for the same wallet? And then from Ivans video “Transactions & UTXO’s” at @12:17" he shows that the same address is participating in the chain as input and output, so does it not breaches the anonymity in the way?
Thank you for everyone who will contribute to my curiosity and learning
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 your tx would be declined.
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