Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4045
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UTXO is the balance of a wallet, available to be spend

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

wallet will combine single UTXOs into one TX until required ammount, which is then sent to receiver and remaining amount is sent back to a sender

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

wallet will pick the one it thinks is the best after checking recent TXs, some wallet allow this to be adjusted but most will propose the fee by it self

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

simply by having one input and 3 outputs its difficult to tell which output is a payment for something and which output is the change back to original input, this becomes even more complex and private if there are multiple inputs, even tho we can tract all transaction we can always only guess which input belongs to which output if we dont have acces to the private keys to check on, where the input has been sent to

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#4046
  1. Describe what Unspent Transaction Outputs (UTXO) are.

The entire balance of your wallet.

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

Transaction would be denied.

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

The wallet itself substract the output from the input and the difference is the actual fee.

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

As using multiple addresses.

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#4047

  1. UTXO’s are the output from other adresses, which we received. So there is no coin or a balance sheet, just a amout of UTXO’s.

  2. It would cancel the transaction.

  3. Input - Output = Fee

  4. Because of SHA256 and blockchain there is no more privacy need. Because Bitcoin and how it works is the privacy.

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#4048

  • Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are the funds that remain to a private key after it has spent money and fees in a transaction.

  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Your wallet must add additional UTXO/s sufficient to cover the Tx plus fees.

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Most wallets will simply propose an estimated fee. Others will also allow the user to specify an estimated fee.

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You could always use a new address to send from for each Tx as well as use an anonymizing service like bitcoin mixing/tumbling.

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#4049
  1. Transaction outputs are sent to your wallet, and the transaction outputs that are in your wallet are considered the unspent transaction outputs. The culmination of the UTXO’s make up the balance of your wallet.
  2. The transaction would not be accepted by the blockchain.
  3. It would estimate a fee based on recent fees on the blockchain.
  4. By using a mix of multiple utxo’s as inputs for a new transaction.
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#4050
  1. transactions you have received and are able to be spent
  2. not a valid transaction. miners will deny
  3. fee = input - output
  4. different addresses
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#4051

  1. Unspent Transactions Outputs (UTXO) is what hasn’t been spent.

  2. You wallet would add up all UTXO s you have to see if you have enough to do the transactions otherwise the transaction would be rejected.

3.The Bitcoin wallet specify the transaction fee by adding up all the data used in the transaction not the Value.

4.To increase you privacy in your transactions it is advisable to have many addresses that belong to you.

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#4052

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 denied. :slight_smile:

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#4053

Thank you for the clarification :slight_smile:

#4054

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO stands for unspent transaction output. A wallet determines which UTXOs can be spent. UTXOs are also added up by the wallet to determine your balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? The transaction will be denied
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Transaction fee = UXTO input - UXTO output
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? Although some say it is not necessary, you could always send your own UTXOs to multiple addresses
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#4055
  1. UTXO = transactions that added you bitcoins that you can spend in the next transaction
  2. In this case, the transaction would not be valid, thus not accepted by the network
  3. The transaction fee depends on the amount of data that’s included in the transaction.
  4. You can add more addresses, so that it’s difficult to trace a single transaction.
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#4056

  1. Unspent Transaction Outputs (UTXO) are the outputs of previous transactions that you have not spent.

  2. Transaction will fail.

  3. There is no need to specify the fee yourself as it will be implied as Input=Output + Fee

  4. Use multiple addresses

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#4057

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

#4058
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The sum of your UTXO’s is your wallets balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The Transaction will not happen.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It checks the blockchain and suggest a fee that will get your transaction processed in a reasonable amount of time.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Each transaction can have multiple outputs to addresses controlled by unknown persons.
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#4059
  1. UTXO is the construction part of a wallet. Need to have at least 1 input and 1 output.
  2. Transaction will be declined.
  3. The wallet checks the blockchain and figures out the correct fee.
  4. Anonymity is provided by bitcoin transactions as output can be sent multiple channels as well to the same input channel.
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#4060

My assumption is that deny and fail are not the same? Just trying to use my own wording but thank you for correcting me.

#4061

  1. Describe what Unspent Transaction Outputs (UTXO) are…
    your balance, or the btc you received

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    it will get cancelled

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    input-output=fee or ou can st the fee how much you will pay

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    make lots of output address

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#4062

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 not happen. :slight_smile:

#4063

Well technically the tx would be rejected (denied) by the nodes in the network because the tx would be invalid. :slight_smile:

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#4064

Transaction has i/ps and o/ps (at least one). I can multiple outputs, Inputs is source of funds. Output is always the sum of inputs.
1. UTXOs are unspent transactions outputs.
2. The blockchain tracks UTXO (unspent transaction output) and keeps the ledger. Wallet sums all UTXO and shows balance. I/Ps always equals O/Ps so you will expect difference (change) going back to wallet. If you don’t have any single UTXO large enough to cover for your transaction, then the transaction could be declined, or the wallet could sum all UTXO inputs to complete the transaction. Go to www.blockchain.com for UTXO transactions.
3. Calculation of Fees: fee = I/P – O/P or I/P = O/P + Tx fee
4. To increase privacy, you can define multiple output UTXOs routing funds back to yourself.

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