Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4085

The sum of all UTXOs is the balance, they are unspent outputs from other transactions.

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

#4086
  1. Your total of UTXOs is your balance. UTXOs are listed in the blockchain and your private key determines which UTXOs are yours to spend.
  2. A second one would join the party and the remainder from the second UTXO will be sent back to yourself.
  3. Fee is the difference between TX inputs and TX outputs.
  4. Split the transaction into more parts?
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#4087

The difference would be sent back to you as a new UTXO.

The most basic approach would be to use a new address every time you receive funds or send change back to yourself. From the explorer its impossible to determine what part went to pay a service and what went back to you as change. :slight_smile:

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#4088
  1. UTXOs (unspent transaction outputs) are the output you receive or that the persons you are sending btc receive to the private keys.
  2. If you dont have one single UTXO to cover a transaction, your wallet will fetch another UTXO and use both as an input. Then there will be two outputs of new UTXOs in which one will cover the amount needed to send and the other will be whats leftover (your change) and it will be sent back to you.
  3. The transaction fee is calculated by subtracting the initial inputs by the outputs.
  4. The notion of inputs and outputs increase privacy as there isn’t away to determine if the sender is the same person as the recipient of the new UTXOs from looking at just the input UTXOs and the output UTXOs.
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#4089
  1. UTXOS are unspent transaction calculated by your wallet’s private key
  2. If there are insufficient UTXOs available to cover the size of the transaction, the transaction is then void and declined
    3.Transaction fees are specified by simply calculating the input-output
    4.You could further create further privacy by using multiple private key recipients, including yourself
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#4090

Describe what Unspent Transaction Outputs (UTXO) are.

  • This are transactions which are inputs to your adress.

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

  • Than you can not spend that amount of Bitcoin. This transaction is not valid.

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

  • It calculates the fees based on the previously incurred fees in the network.And it is the difference between UTXO input and the output.

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

  • You can send transactions to your own wallets. Nobody can realize that.
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#4091

UTXO is your unspent transaction output. Your wallet tracks this and works with the blockchain. Balance of the wallet is your sum UTXO
Your transaction will fail.
Input minus output (is the fee)

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#4092
  1. utxos are the outputs of a transaction and they are what your wallet keeps track of for your balance.
  2. the transaction wouldnt be able to process since the fees would be unable to process.
  3. the wallet would check the blockchain to find a fee that is reasonable and will get your transaction processed quickly.
  4. several addresses and outputs can result from one input
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#4093

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

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#4094

1- UTXOs are the total balance left that you have in your wallet.

2- If you don’t have enough to cover it, it will be declined.

3- The fee will be specified by making a subtraction of the Inputs from the Outputs. Fee is equal to Inputs minus Outputs.

4- Privacy is increased by using as many Inputs and Outputs as posible. So, using different address for each transaction will give you more privacy.

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#4095
  1. UTXOs are unspent transaction fees that are unspent outputs from the former transaction
  2. You would not be able to perform a transaction
  3. It would specify a transaction fee by calculating the previous UTXOs sum and show you how much you have to transfer to someone else.
  4. By making use of a different address from an input.
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#4096
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

1/ utox are unspent transcation output
2/ Sufficent funds are needed to cover transcation otherwise it will not proceed
3/ input-output=fee
4/ Using several address within a transcation so the money looks like it is being scattered

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#4097

Describe what Unspent Transaction Outputs (UTXO) are.
A UTXO is the volume of BTC in this case that has been sent to a private key but has not yet been spent in another transaction.

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If you do not have a single UTXO to cover the transaction you can use multiple UTXO’s to cover this. If however none of your UTXO’s are enough for the transaction the blockchain would reject this when transmitted to the network.

How would a bitcoin wallet specify the transaction fee when creating a transaction?
BTC wallets often work this out for you and the fee is calculated for you however to do this manually it would be Input - Output = Fee.

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
As anyone can have a wallet or a number of wallets - you can send your BTC to different wallets to separate it. As BTC wallets do not need KYC (or any other details) to own them or operate them you can keep anonymity by using a different wallet each time you send your BTC.

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#4098

Homework - UTXOs

Bitcoin Basics

Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs are records of transactions that have not spent all the funds available.

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

One or more additional UTXOs would come in to bring in the required funds.

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

It depends on the wallet. Some wallets let you specify the transaction fee or the maximum fee.

Some wallets calculate a reasonable fee based on recent activity.

If the fee is too low, miners will give low priority to the transaction.

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

Have one of the outputs send funds to another one of your accounts.

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#4099
  1. UTXO’s are the results of previous inputs and subsequent transactions.
  2. A transaction would be declined until you have enough UTXO’s.
  3. Transaction fees are determined by the exchange or sometimes leftover transactions. Some wallets allow the user to imply a fee.
  4. You can increase privacy by sending transactions to multiple addresses you possess, however, once a transaction can be traced to a user, those previous transactions can be scrutinized as well.
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#4100
  1. Unspent transactions are basically the amount of BTC you have available to spend in your wallet.
  2. Your transaction would be denied by the node and it would not go into the blockchain.
  3. It communicates with a node and sees what the typical fees are that have gotten picked up by miners and offers you a fee that will get your transaction into the block chain fast enough.
  4. You could send to multiple addresses. You’ll could send the actual transaction to the correct address and then multiple to yourself. Maybe to different wallets addresses that you have.
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#4101
  1. UTXO’s are the unspent output of a transaction. They specify an coin quantity and a destination address.
  2. Your wallet would utilize one or more additional UTXO’s as input to the transaction where the sum of all inputs is >= the sum of the outputs + fees.
  3. Some wallets allow you to specify a TX fee while most suggest a fee based on previous block TX’s that will get your TX in a block in a timely manner.
  4. You could specify a different address to receive the remainder of the TX outputs rather than one of the input addresses.
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#4102

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

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#4103
  1. UTXO’s are unspent outputs of the previous transaction.
  2. the transaction would be invalid, transaction would be rejected/denied.
  3. the fee is calculated from the remainder of all inputs minus the outputs of a transaction.
    4.you can do multiple output transactions so it can become harder to tell the input’s owner
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#4104
  1. utxo’s are the amounts of transactions which are available to spend. They sum up in the account balance.
  2. The transaction would be denied by the nodes.
  3. The wallet looks into transaction fees of last transactions to find out the current fee prices that makes the transaction eligible for miners.
  4. E.g. by using several addresses.
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