Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4065

1, it means unspent tx outputs, it is all the founds that has been received on your private key but has not yet been spent,

2, all utxo will be summed up, the excess will be sent back to you, -fee. or if there is not enough to cover will be denied

3, the difference between input and output

4,using multiple outputs where one or more belongs to you

there is one thing that is not clear to me, let say I have 3 different UTXO of 0.5, 0.8 and 0.3 BTC , I like to spend 0.35 BTC, since I have 0.5 as a single UTXO that lets assume also covers the fee, would my UTXOs still be summed up and paid out then have the excess paid back to me?

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#4066
  • Describe what Unspent Transaction Outputs (UTXO) are.
    -This are outputs from other transactions that can be use as inputs into other transactions but havent been used yet.
  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    -Theres no way for you to pay that.
  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • You have to substract the output from the input and there you have it.
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • By having my own wallet on hardware and be offline.
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#4067

  1. UTXO is an amount that can be spent (account balance)

  2. The transaction can’t be performed

  3. The transaction fee is specified by the difference between the input and output

  4. By sending outputs to oneself (This would make tracking harder)

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#4068

  1. UXTOs are what you are able to use as inputs to a transaction.

  2. If you do not have any single UTXOs that are large enough to cover for your transaction then you can combine UTXOs within your wallet to cover the transaction.

  3. The input subtract the output gives you the fees.

  4. You can use different address to help maintain privacy.

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#4069

The tx would only use one UTXO since there is enough funds to pay the tx. The difference would be sent back to you as usual. :slight_smile:

#4070

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 could not be performed. :slight_smile:

#4071

I see, thank you for your reply.

#4072

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Unspent Transaction Outputs (UTXO’s) are basically what shows up in your wallet as the amount of bitcoin you have in possession. Now, you do not own “coins” per se, but you actually own the output of the previous inputs which adds up to your UTXO or x amount of unspent bitcoin being held in your wallet. Your next transaction spends that unspent output, thus turning it into new input for other wallets and creating new UTXO’s.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Your transaction would get denied/rejected by the nodes keeping track of the ledger and verifications.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A wallet specifies a transaction fee by calculating the difference between the input and the output of the transaction.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Wallets hold your private keys, and when you conduct transactions through the hashing algorithm protocol, it strengthens privacy. Now, when you conduct transactions, your public key(wallet) shows up on the public ledger when viewing transactions on the block explorer, but that is all the information you will get, you will not know who is who and who owns what wallet. It can be the same owner sending utxo’s to different wallets that they own.

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#4073

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are unspent transaction outputs. They essentially amount to the amount of currency you have at any one time. They are not held in your wallet, your wallet simply keeps track of the total amount of currency belonging to you in utxo on the blockchain. Once spent those utxo become utxos on the ledger belonging to someone else.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Your wallet can combine several utxos if necessary to complete the transaction, but the entirety of each UTXO must be spent they cannot be separated, thus there may be a need to transfer some of the total amount back to yourself or another wallet you control.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fee amounts to the difference between the input and output.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By using multiple address to route money back to yourself without anyone viewing the ledger knowing the exact amount of spent on any individual transaction.

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#4074

Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are used as inputs for new transactions. When a transaction takes place, inputs are deleted and outputs are created as new UTXOs that may then be consumed in future transactions.

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If a single UTXO isn’t large enough for an input amount, then the wallet will use a second, a third, etc until the total is greater than or equal to the amount you’re sending. UTXOs cannot be divided. The difference is then sent back to you as “change” during the transaction.

How would a bitcoin wallet specify the transaction fee when creating a transaction?
It’s the difference between the input and the output.

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
A transaction can have multiple inputs and outputs from different addresses making it difficult to see which ones belong to which wallet.

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#4075

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:

#4076

  1. Transactions are constructed of inputs and outputs. UTXOs are your balance available to construct new transaction inputs.

  2. Multiple UTXOs would be combined to fulfill your transaction. If unavailable then transaction would be invalid.

  3. Fee = Inputs - Outputs

  4. Multiple inputs and outputs would make tracing the origins of each transaction more difficult.

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#4077
  1. UTXO are transaction outputs that are unspent. It is the balance in a given wallet.
  2. The transaction would be cancelled or sent back.
  3. Wallet balance minus input gets your fee.
  4. use a private blockchain
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#4078
  1. utxo’s are previous chunks that were sent to you that have yet to spend. your wallet goes out the blockchain and totals them up for you and provides one nice neat number for your convenience
  2. you would need to add enough multiple utxo’s until you equal or exceed the amount needed

3, (total inputs) - (total outputs) = tx fee
4. the beauty is that you can have multiple wallet addresses so you can send coins both to the recipient and yourself (to a different wallet address). so to an outside observer it could appear that you are sending coins to two recipients when in reality you are sending to one recipient and back to yourself.

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#4079

Question #1: Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are outputs from a transaction that are stored in the blockchain but have not yet been spent in a new transaction. They are the outputs resulting from the input of a prior transaction.

Question #2: What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Assuming your UTXOs are stored on your wallet the sum of your UTXOs are available to be used as inputs in a transaction in the future. You do not need enough units from one previous transaction to send out of your wallet for a new transaction, as long as the total sum of your wallet covers your new transaction.

Question #3: How would a bitcoin wallet specify the transaction fee when creating a transaction?
A transaction fee is the Input minus the Output amount on a transaction. A Bitcoin wallet tracks the UTXOs your wallet can spend, as well as the private key for the wallet. When a Bitcoin wallet constructs a transaction most of them chose a recommended fee based on data from the blockchain it has referenced that is based on recent fees paid for transactions on the blockchain. Some wallets on the other hand, will allow you to set your own fee amount.

Question #4: How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Privacy can be created by sending outputs to multiple addresses on the blockchain. Since only the private key holder knows who owns the output locations privacy can be inherently created through anonymous transactions.

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#4080

  1. utxo’s are unspent transactions, coming or going from the wallet, and the sum of utxo’s output and input, minus the transaction fees is your balance.

  2. You can only transact out what’s in your balance.

3.the sum of input - sum of output - fees = balance

4.you never hold anything, only a private key, OMFG !!!

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#4081

  1. They are previous inputs towards the wallet, they record the transaction sums.

  2. More UTXOs will be applied to either match or exceed the proposed transaction.

  3. Input value minus output value, equals the fee.

  4. The outputs do not define who controls them.

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#4082

  1. UTXO are the sum of an input in a transction. They are the funds that are available in your wallet.

  2. If you do not have any single utxo to cover a transaction the transaction will simply be ignored and will not go through. The transaction will be declined.

  3. The fee is formed by taking the difference from the input and the output. Input - Output = Transaction fee.

  4. You are able to use multiple addresses and outputs from one single transaction. this creates anonymity. No one can tell where each transaction is going except for the owner of the wallet.

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#4083
  1. A UTXO is the unspent transaction output accumulated in an individual’s “wallet.”
  2. If the combination od UTXO’s offered as input to a transaction are insufficient to cover the transaction requested then the transaction will fail to validate.
  3. The wallet, in its query processes, will determine a reasonable fee that will likely permit the transaction to occur in a reasonable timeframe.
  4. The anonymity built into the transaction process through the use of numerous addresses for inputs and outputs of the transaction increases privacy for the wallet owner.
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#4084

  1. Describe what Unspent Transaction Outputs (UTXO) are. Unspent output of previous transactions

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Invalid confirmation… need money in transaction to be confirmed

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? difference between input and output+ fee UTXO - UTXO output + fee

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? difference addresses could be used…different blockchain address

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