Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4165

  1. UTXO’s the balance left in your wallet after a transaction occurs

  2. You can use however many additional inputs needed to cover the transaction and fee.

  3. the fee is the difference between the inputs and the outputs

  4. Privacy can be increased in your transaction by always generating new addresses, especially for the outputs and even sometimes having transactions with yourself

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#4166

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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#4167

  1. Unspent funds (inputs) in the wallet not yet spent (balance).

  2. Transaction would not be processed (input must = output). additional UXTO inputs could be used (and returned)

  3. inputs minus outputs, the fee is the remaining amount

  4. increasing the number of input and output addresses or splitting between multiple wallets

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#4168

1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are unspent transaction outputs that you have received but have not spent.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your transaction will become invalid as you do not have the required UTXOs to cover the transaction. The same can happen if you do not have any to cover the transaction fee.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
This is an implied fee and there is no specification of this fee. The input and output will always be the same however minus the transaction fee which will go to the miner to cover cost of putting the transaction onto the blockchain.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Privacy would be increased because all of my UTXOs would be used. In this nobody would know what transaction is going where and if there is a transaction going back to me or to another person. Additionally there is no person identification it is simply address of individuals that do not identify any person. I could be sending money to another wallet of mine and no one would know.

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#4169
  1. A Unspent Transaction Output is the amount of BTC you have available to spend in your wallet.
  2. If you have other UTXOs they would be added to get the value of the transaction or over. If the combined UXTOs total more than the transaction and fee you will receive the remaining balance as a new UTXO in your wallet.
  3. The transaction fee is the input minus the output. a lot of wallets will automatically work out the fees for you but it can be done manually on some. by reducing fees you are likely to have longer transactions and the opposite when paying higher fees.
  4. Privacy can be increased in transactions by having multiple outputs as no one can tell what value of the UXTOs are coming back to you.
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#4170

1- UTXOs are the transactions and balances you have available on the network before you spend or send.
2- The transactions will not be approved and cancelled.
3- It will calculate the fee automatically based on the value.
4- You can increase the privacy by having multiple addresses.

#4171

  1. The sum of UTXO is basically a balance in your bitcoin wallet. When you receive some amount of bitcoin (inputs), a blockchain data shows that you are eligible to use that amount in your future transactions. So, there is basically nothing physically in your wallet, but your wallet connects the blockchain and gets the information on how many “coins” you can use in your future transactions. These inputs that you have received, but not yet spent on transactions are UTXO.

  2. That doesn’t matter if only you have other inputs or UTXO which when summed up will cover the transaction output and fee.

  3. A wallet proposes a transaction fee taking into account current network conditions and transaction data, which consists of the inputs and outputs used. You are also able to define the amount you are willing to pay if you for example want the transaction to be confirmed faster.

  4. When you look at the transaction data, it’s impossible to tell which outputs go to the receiver and which output addresses might in fact be in control of the sender. That increases anonymity and privacy in the blockchain.

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#4172

1: UTXO’s are unspent available inputs…they are tracked by the blockchain and used by the wallet to construct the transaction.

2: With no UTXO(s) to cover the transaction it will not go through.

3: It would be the implied difference between output and input…some wallets present you with the choice of different “fees” depending on the latest activity on the blockchain.

4: The notion of having multiple UTXOs as input allows enhanced privacy when trying to do a transaction that you dont want easily tracked.

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#4173

Thanks for the correction :slight_smile:

#4174

1)UTXO are the contracts that have been received but not sent out
2)The transaction would cancel or reverse
3) UTXO minus input
4)different address on the different receiving transaction

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#4175
  1. Basically that’s what you can spend
  2. It will sum up your YTXOs and send you to change from this transaction
  3. The wallet calculate the fee that relatively fast will get you to the miner
  4. By increasing the number of recivers
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#4176
  1. It is transactions which was sent to you
  2. Nodes will ignore you transation. It doesn’t make sense
  3. it is sum of all inputs - sum of all outputs
  4. You can send money to your other wallets and to other people wallet in one transaction. No one will know which wallet was your and which was not.
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#4177

  1. UTXO = Unspent transaction output. It is when an input from one wallet becomes the output.

  2. If you dont have a single UTXO that is large enough to cover your transaction, the transaction would fail. You would need to lower total of your transaction to slightly lower than your UTXO, as you would also need to factor in fees.

  3. The bitcoin wallet specifies the fee based on how much data is used for the transaction. Not the value of the transaction.

  4. Use different addresses especially for outputs. Use a private blockchain.

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#4178
  1. UTXOs are balances that are available to spend in your wallet.
  2. Your transaction will be declined.
  3. It will find the fee that will get you in the blockchain the fastest or let you choose what fee you want to pay from what is available.
  4. I don’t know. The transaction inputs and outputs are visible in the blockchain. You would have to hide them somehow.
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#4179
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are the different amounts of unspent bitcoin that you have received. Your wallet keeps track of these UTXOs and allocates them accordingly when you pay someone.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    If the funds associated with one, single UTXO is sufficient, only one will be used. However, if they are insufficient, additional UTXOs will need to be utilized and integrated into the transaction in order to the cover the cost and fees of the transaction. Any excess funds will be sent back to your wallet in the form of a new UTXO.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is typically included and is specified prior to executing the permission for the transaction to occur. When the transaction has been confirmed, the actual fee can be determined in the blockchain explorer. Mathematically speaking, the fee will always equal the input minus the output.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Because multiple UTXOs may be required to perform a given transaction, the mingling of UTXOs across multiple transactions is exponential. Therefore, the prospect of determining the origin of UTXOs is daunting and inherently confers a level anonymity.
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#4180
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Unspent Transaction Outputs are transactions that were received but not spent.

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

It will add up the other UTXO, the amount is not enough the transaction will be declined

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

The wallet will calculate the input - output, the answer will be the charged fee

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

by using multiple addresses

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#4181

  1. UTXOs are transactions recorded as being sent to your wallet as an input, but as an output from the senders wallet, that have yet to be spent.

  2. If there isn’t a single UTXO large enough to cover your transaction, the transaction will be deemed invalid by the nodes on the network.

  3. The wallet would analyze recent txn fees and suggest a fee that should ensure your transaction is picked up by a miner and confirmed. Some wallets also allow the user to specify the fee to be paid.

  4. One could employ the use of multiple addresses, and structure transactions to be divided into said addresses.

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#4182
  1. UTXOs are inputs that have not yet been used as outputs.
  2. Wallet would sum and send output accordingly.
  3. Read the blockchain as reference to current fees and recommend accordingly.
  4. Use multiple inputs and outputs.
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#4183
  1. A UTXO is the amount in digital currency that is left after a transaction has been executed. UTXOs are recorded on the blockchain.
  2. The wallet would send a combination of UTXOs that would cover the transactions and the fee.
  3. The wallet will calculate the appropriate fee depending on the transaction size and network conditions.
  4. Given one person wants to transfer 2 BTC from one address to another, and a different person wants to transfer 3 BTC from one address to another, could use CoinJoin where transactions from two different senders are combined in a single transaction with two inputs. An adversary observing the blockchain would not know which output is from one or the other person.
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#4184

UTXO’s are amounts of BTC that have been sent to your wallet.
Not enough BTC, transaction is rejected, tossed, discarded.
The wallet need only know input and output to calculate the Fee
I don’t know the answer to number 4 … but perhaps you send UTXO’s to yourself after they are received from someone else … because then when it is spent, it is UTXO’s from yourself.

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