Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4125

  1. Describe what Unspent Transaction Outputs (UTXO) are = previous inputs or balances from previous transactions stored in your wallet.

  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 be valid.

    1. How would a bitcoin wallet specify the transaction fee when creating a transaction? it is calculated by the difference from the inputs - outputs
    1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? it creates a numerous output addresses, which is hard to track because no personal information is linked to that address.
1 Like
#4126

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

#4127

  1. The UTXO are the balance left in your wallet that it keeps track of.

  2. The transaction would be declined if your UTXO is not large enough to cover it.

  3. The wallet checks the blockchain and figures out the correct fee.

  4. Several addresses and outputs can result from one input.

1 Like
#4128

1 UTXO are:
Transactions sent to your address as well as the input for your new transactions.

2 Not enough UTXO balance:
The wallet will look up in the blockchain if the private key owns enough balance on the network. If yes then the wallet constructs a transaction made out of combined and available UTXO’s on the network

3 Specify the tx fee:
In a block, (add up all UTXO Input(s)) minus all UTXO outputs = tx fee

4 How combined UTXO per block adds up to privacy:
The UTXO input can be traced to a wallet address. Combining multiple UTXO makes pinpoint the exact origin harder.

1 Like
#4129

1.) UTXOs are unspent transaction outputs within my wallet. as my wallet receives inputs they turn into UTXOs. they are basicly Outputs that i havent spent yet.

2.) if a single UTXO isnt large enough to cover a transaction it is no problem! the wallet can add up all of my UTXOs and sends them together. always. if i have a total of 1,0 BTC of UTXOs and i buy something for 0,5 i will send 0,5 to the seller and 0,5 back to myself. that turning my 0,5 input in a new UTXO.

3.) the fees are calculated by input = output + fees. there for my output can never be the same as my input(s) . the network automaticly generates a fee that is high enough to incentivize the miners to take my transaction and put them in a block for confirmation. The rest is sent back to my wallet as a new UTXO

4.) Every input and output is just a public key which is by nature, public, however there is no name associated with it, as long as nobody knows my keys nobody knows that it is me.

1 Like
#4130
  1. UTXO’s are transactions an address has received that have not yet been sent to another address.
  2. Multiple UTXO’s (if available) will be combined to make up the total transaction you are trying to send.
  3. A BTC wallet will search recent fees on the blockchain and suggest a fee based on a middle ground value.
  4. You can send to or receive from another address you control.
1 Like
#4131
  1. is transaction that occur where input = out + fee
  2. declined tx
  3. by checking the blockchain history or if it was setup manually
    4.transction send to one or more unknown channel including the sender himself by shwing different addresses
1 Like
#4132
  1. Describe what Unspent Transaction Outputs (UTXO) are.

It is the result of a blockchain transaction.

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

You can’t use it.

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

It will mention fee, and the amount will be the input minus the output.

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

By creating another wallet to send back UTXOs to myself.

1 Like
#4133

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    These are artifacts tied to a private key that are used as inputs to the next transaction.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple inputs would be added together to cover the transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is the input total minus the output total.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Each input and output has its own private key associated with it. The protocol manages the transaction without personal information being swapped.

1 Like
#4134

1.) Outputs from a transaction that are placed in another wallet or transacted to another, but is not spent.
2.) Add another or a sum of all the other UTXO in the wallet; otherwise, the transaction won’t go through
3.) Gets the fee from other previous transactions fees; it is then subtracted from the UTXO
4.) Different keys or different addresses per transaction

1 Like
#4135
  1. UTXOs (Unspend Transaction Output) refers to the amount of digital money someone has left remaining after a transaction.
  2. The transaction could not be signed and sent.
  3. The fee is not specified, but it is the sum of input minus the sum of output.
1 Like
#4136
  1. UTXO is the balance remaining on your wallet.
  2. TXN would be declined due to output being higher then the input (balance).
  3. TX Fee= Input - Output
  4. Anonymous txns are maintained by high volume of input & output. Various wallet addresses increase privacy in the txn for UTXO.
1 Like
#4137
  1. UTxO´s are unspent transaction outputs, which in total, make up the balance of my wallet.
  2. In short, you wouldn´t be able to make the transaction.
  3. Input = Output + Tx Fee (The wallet will connect to the blockchain an figure out a Fee which will please the miners.
  4. Apparently, using multiple different Input/output Addresses. However, if someone know how to read the blockchain explorer, he might be able to track your transactions down.
1 Like
#4138

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are the output of transactions that are available as an input for new transactions.
    A wallet requests the list of all UTXO related to the private key from the blockchain node and calculates the sum of all BTC funds available to spend on a new transaction.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    If one UTXO is no enough, the wallet uses two ore more UTXO to cover the required amount of output + fees.
    The wallet constructs a new transaction with several UTXO inputs, the excess amount between input value and output + fees will be sent back to the sender or another wallet that is under control of the sender.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The sum of a transaction must be 0 (input = output + fee)
    The wallet defines the inputs and the outputs values. The fee is the subtraction of input - output value.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    To increase the privacy you can create new wallets and split your funds across them.
    In addition you can use those new addresses only once.

1 Like
#4139

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:

1 Like
#4140

1 The amount of BTC that you are are able to spend
2 The miners will not accept yor transaction.
3 It has to be large enough to miners accept it becouse it goes to them UTXO-UTXO INPUT
4 Use different adresses

1 Like
#4141 
Describe what Unspent Transaction Outputs (UTXO) are.

The bitcoins you received and the ones you can spend.

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

The transaction wouldn’t be accepted.

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

It looks at the past fees in the blockchain and it needs to be big enough for the miners.

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

Using more wallets/addresses.

1 Like
#4142
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    It’s kind of coins that storage in your wallet and waiting to use it.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    If you have a lot of little UTXO, that cover your transaction, you can send it and unrealized UTXO will send your back.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Mostly bitcoin wallet will check previous fee and apply it on your transaction, or you can choose ot by yourself.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

Use many wallets

1 Like
#4143
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    It is a received transactions (output from the previous incoming transaction) that is still in the wallet and not spent. UXTO’s are used by the wallet to calculate the balance and used to initiate and output transaction.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    All UXTO’s are added and spent. The extra amount not needed minus the fee is returned to the wallet.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fee is the input minus the output. The amount depends on the recent transactions used on the blockchain.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Using many input and outputs
1 Like
#4144

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

1 Like