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The UTXOs are the funds available for transactions in your wallet.
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The transaction will not happen.
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The wallet checks the blockchain and figures it out what are the fees to make the transaction fast enough.
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You can use multiple wallets and send the UTXO to other wallet of your own.
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1- UTXO are previous input transactions on an specific wallet that have not been spent or sent yet to a desired wallet address. Without this action the transaction will still be an UTXO until it is sent to the targeted address and finally become in TX.
2- If you have other existing UTXO you would need to use them to cover the whole transaction but you would net to sent yourself the positive differential of that amount to your original wallet or a different one of your own.
3- It would automatically suggest the best fee time-cost effective or some would let you decide which fee and at what speed your transaction would get trough the blockchain.
4- I would increase the number of wallets and UTXO before the transaction get the its final address destination but this action would affect the lead time and cost of that transaction.
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1 - Someone’s output to you is in the UTXO and waiting for you to produce an output. Then the UTXO will take input and output to get the TX result.
2 - You would use other UTXO to get the amount you need. If it is too much then change will be sent back to you or your wallet.
3 - Input less Output leaves the fee amount.
4 - Add more transactions.
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UTXOs are outputs from a transaction which represents a certain amount of value, and can be used as inputs in a new transaction by the recipient.
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If you didn’t have a single UTXO that is large enough to cover a transaction, then you would add additional UTXOs until there is enough to cover the transaction.
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When creating a transaction, a wallet will calculate a reasonable fee based on recent fees in the blockchain. The user may change this fee and accept the consequences (i.e. faster or slower confirmation)
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You can increase privacy in your transaction by sending outputs to a different address which you own.
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1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are essentially the spendable amount held in an address. A wallet calculates the inputs it has and adds them up to create a balance. So, the balance of the wallet is a sum of UTXOs.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
A wallet constructs a transaction by adding up multiple UTXOs. Even if there isn’t one UTXO that is large enough to cover for the transaction, it can still go through by adding them together.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
A bitcoin wallet would simply substract the outputs from the inputs, where the difference would be the fees. (Inputs - Outputs = Transaction Fee)
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Because a transaction can be sent to multiple recipients, it is difficult to figure out which outputs are coming back to the sender. The addresses publicly appear on the blockchain but they do not specify exactly which output is payment and which is coming back.
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Describe what Unspent Transaction Outputs (UTXO) are. - Received transactions and crypto you can spend.
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What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? - It would be an invalid transaction and would not go through, kind of like a hot check.
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How would a bitcoin wallet specify the transaction fee when creating a transaction? - Just like a bank, brokerage, or any other middle man, it is the cost of business. How the middle man profits.
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How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? By creating different addresses each time you perform a transaction, all the crypto would move to new address. Addresses are not linked to a person so it would be difficult to llink UTXO’s to someone specific.
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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 not happen. 
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1, UTXO is the balance of your wallet
2, The transaction would be invalid
3, The wallet will check the block to allocate a fee which will get your transaction processed in a reasonable timeframe
4, Generate multiple and new output addresses on each transaction will make identity hard to track
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UTXOs are outputs from previous transactions that have not been used as inputs
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wallets combine multiple UTXOs in order to cover the necessary amount of bitcoin to cover the output
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transaction fees are not specified. they are implied. TX fees= inputs minus outputs
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Privacy can be in creased by adding additional outputs with some of the outputs going back to yourself.
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- Sum of all previous unspent outputs
- Transaction would fail and revert, or use multiple UTXO’s to cover new output
- UTXO in - UTXO out = Transaction fee
- Use different wallets for each in input transaction
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- UTXO are bitcoin transaction inputs received in a wallet, which not yet spent. One person’s output is the input for the recipient.
- UTXOs has to be spent entirely in a transaction. All UTXOs add together generate 2 outputs. One to cover the the transaction, the other sent to your own wallet.
- Wallet never specify the fees. The fees vis equal to total inputs - total outputs.
- There is not transaction on the blockchain. Only addresses between inputs and outputs.
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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 invalid.
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Thanks for your replies! Made it easier to understand UTXOs.
Do you have some good suggestions on where to learn more about this? As in, how does it actually work in practice - “cluster your transaction into multiple recipients per transaction” | “use a private blockchain”?
Would like to be able to apply these methods.
Best regards,
Erik
Homework on bitcoin transactions and utxo
UTXO means unspent transaction outputs, and its basically the balance,
No transaction, as it wouldn’t get covered.
Utxo minus the input? Or check the blockchain for the fee
Using various inputs and outputs.
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1. Describe what Unspent Transaction Outputs (UTXO) are.
The amount left behind in the wallet, like change after a transaction was executed (unspent outputs).
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
It adds up other UTXOs to make up for amount, if there is not enough for the outputs plus the fee, the transaction will be invalid.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The fee is the difference between the transaction input and the output.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By increasing the number of outputs.
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- A UTXO is the balance in your wallet that is available to spend
- The wallet will add up all UTXO’s to generate an output transaction if there is enough
- The wallet will search to find an adequate fee for the transaction to be confirmed by miners. Some wallets allow you to adjust the fee.
- Use multiple output addresses will make it more difficult
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A comprehensive video here explaining from the Massachusetts Institute of Technology: https://ocw.mit.edu/courses/media-arts-and-sciences/mas-s62-cryptocurrency-engineering-and-design-spring-2018/lecture-videos/lec4-transactions-and-the-utxo-model/
" To understand the UTXO model, it’s helpful to think of a very big apple tree with many branches. There are people all over the tree sitting on different branches, with different amounts of apples on each branch. On this apple tree, there is a branch with ten apples hanging from it. You are sitting on this branch of the tree, because you own these ten apples. Imagine now that you want to give four apples to a friend. To give these four apples, two new branches start to grow at the very end of the branch you were sitting on. One of these branches has six apples, and another branch has four apples. Your friend then sits on the new branch with four apples and you sit on the branch with six apples. The two new branches have a total of ten apples on them collectively, which is the same as the original branch you sat on. New branches start to grow from your branches in the same way whenever a transaction is made.
From this example, we can see that the two branches were outputs of the original branch. One of these outputs , the branch with four apples on it, represents an output that now belongs to someone else. Because these have been sent to someone, they are spent outputs . The second branch with six apples is your branch of unspent outputs , which grew from the original branch. You are still able to give away these six apples, as these are the apples that are unspent outputs of your transaction to your friend. In this way, there is a clear chain of ownership that builds like a tree over time. The transactions that are unspent can be used for further transactions, and so on."
https://emurgo.io/en/blog/blockchain-primer-cardanos-utxo-model-simply-explained
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1.) a transaction sent to your address that you did not spend yet
2.) It would add in another UTXO for multiple inputs to complete the transaction
3.) Input - Output = Fee - Fee is derived
4.) You can see the addresses but have no idea who owns them.
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UTXO’s are the balance of your wallet.
If you don’t have enough UTXO’s to cover a transaction, the transaction will not complete.
The wallet automatically configures the best fee at the time of transaction.
You can increase transaction privacy by generating different addresses.
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- Unspent Transaction Outputs: The transactions amounts that an address a wallet has received but not spent yet. It sums up to the total amount available to spend in a new transaction.
- If I don’t have any single UTXO to cover for my transaction, I can use multiple UTXOs combined and transfer the surplus back to myself as a new UTXO. If the sum of all my UTXOs is not enough to cover for the transaction, the transaction will be rejected.
- It is the balance between the inputs and outputs.
- The inputs and outputs are all addresses for which the owner is undisclosed. When multiple outputs, we can’t tell which amount was spent and which amount was sent back to the source.
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