Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4225
  1. UTXO’s are unspent outputs of the previous transaction
  2. The transaction would not be validated
  3. Fee = Input - Output
  4. Use a different address for each receiving transaction
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#4226

  1. Unspent transaction outputs are method Bitcoin uses to keep track of spent and unspent Bitcoin.

  2. If you didn’t have any single unspent transaction output large enough to cover the cost of an item, first your wallet will check for other unspent transaction outputs and if there are others, then the wallet would calculate how much UTXOs there are in total to make the purchase. However, if there is no other UTXO or if it still does not cover the cost, then the transaction will be denied.

  3. The Bitcoin wallet will specify a transaction fee by looking at previous transaction fees within the same block to calculate a transaction fee that will get the transaction through the quickest.

  4. Having a private key allows one location to have different ways to be contacted, where one input can lead to multiple outputs including the same input, but under a different “name”.

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#4227

  1. UTXOs are the total balance on your wallet that you can spend

  2. The transaction would be declined since you do not have enough funds to carry out the transaction.

3.The wallet will find a fee on the blockchain to ensure that your transaction reaches the blockchain quickly.

  1. When a transaction is carried out, there can be multiple outputs.
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#4228

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:

#4229
  1. It is a result of an input from say another wallet. It is what you can spend(minus fees)-
  2. It would be invalid from start.
  3. It will recommend/find a fee for you and deduct it automatically.
  4. You create a different adress for each transaction output.
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#4230
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    -UTXO is the data that you received from previous transactions but hasn’t spend yet.

2.What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
-The wallet will add up the same other ones which you received previously. If the total value of that UTXO is still not enough to cover, your transaction will be refused.

  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    -The wallet will query the blockchain for a suit fee to make the transaction happening. Or, some wallets allowed you to choose the fee by yourself.

4.How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
-It is impossible to know and track where the UTXO’s send it to, or from whom. Since the address is just an alphanumeric string. It increases anonymity.

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#4231

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Basically UTXO’s are the balance of your BTC. Your wallet tracks your UTXO from blockchain and shows how much you can spend.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    You can use multiple UTXO’s to transactions. If it’s still not enough the blockchain will not verify the transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Input - output

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? You can own multiple wallets. You can send all UTXO you have to different wallets you own and increase your privacy.

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#4232

Homework on Bitcoin Transactions and UTXO

1- UYXOs are an unspent balance you received from others.
2- the transaction won’t happen.
3- input-output = fee
4- by sending and receiving on several addresses.

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#4233
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Answer: it is what input you have and what output to create including fees. Database of transactions and which transactions output are unspent.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Answer: you can take 2 different inputs and create 2 different outputs to match it. input needs to be the same as output+fee.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Answer: input-output=transaction fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Answer: increase the number of outputs, use more addresses.
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#4234
  1. Wallet balance: inputs received and did not spend.
  2. Transaction will not be completed.
  3. It is the result of inputs - outputs
  4. All UTXOs can be tracked, but you can make it harder to identify moving your balance between different Private Keys you have.
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#4235

  1. UTXO´s are the tracked outputs of a transaction which can be spent with your Private key

  2. The transaction will be constructed out of the sum of your inputs , all the small UTXO´s a wallet hast to enable the transaction .
    If still not possible then no Transaction !

  3. The transaction fee can be specified as follows:
    input - output = Transaction Fees

  4. By including yourself to the transaction as part of the output and diversification of wallet addresses .

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#4236

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:

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#4237

  1. These are the Bitcoins available to ( connected to) the wallet that can be spent. They arise from bitcoin sent to the wallet as input and are stored in the block chain. When the wallet queries the block-chain, these are returned and can be used as input to the transaction that is being formed when one wants to spend. When spending transaction is signed by the private key, the inputs are no longer UTXO of bitcoins but are now spent bitcoins.

  2. The wallet would calculate the total (cumulation) of all the UTXOs for that private key that can be spent, and in that sense, the wallet plays a crucial role in constructing a transaction (mediation) to overcome this, provided the required amount to be spent plus the fees is less than the cumulated available bitcoins (from all the UTXOs).

  3. It selects (suggests) the transaction fees based on the previous fees used in the blockchain that successfully caused the transactions to be confirmed and the block to be added. The person can override this number in some wallets. It is never entered as a value but is calculated from the total of the input minus the output to be spent.

  4. The notion can be used to increase the privacy by returning the change to a different wallet address that i own.

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#4238
  1. An output of a blockchain transaction that has not been spend.
    2.The transaction would be declined.
    3.The wallet calculates the difference between the input and output for you which is the fee.
  2. use different addresses to increase privacy.
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#4239

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO is the unspend transaction.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    if it would happen then the difference will be sent back to a wallet you control

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fee will be the Total input - total output

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

Because we canot be sure wich value of the txo output was sent to the sender

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#4240

  1. The output received from a previous transaction. Able to produce another transaction of the amount received + transaction fee. Total wallet balance is all of current UTXO’s.

  2. Transaction would fail. The input for any transaction must be equal the output.

  3. Input - Output. Wallet calculates this automatically

  4. You can send funds to multiple addresses, including others you also own so any onlookers cannot tell how much BTC is held in specific wallets etc.

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#4241

  1. UTXOs are basically the liquidity in your wallet. And to achieve this the input of coins needs to be higher than the output.

  2. If you dont have a single UTXO that is large enough to cover for your transaction the transaction will be cancelled.

  3. A bitcoin wallet specifies the transaction fee as the difference between output and input.

  4. You can increase the privacy in your transaction by using several inputs and outputs.

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#4242

  1. UTXOs are the way that the bitcoin blockchain keeps track of the funds available for each user of the blockchain to spend. A UTXO is generated when a user receives Bitcoin, the concept of the UTXO is that it can ensure that no funds are spend more than once on the blockchain. When a UTXO is spent, one or more new UTXOs are created and passed to the recipients of the transaction.

  2. If you have several smaller UTXOs the wallet would aggregate these to cover the fee, in the case that there are not sufficient funds to complete the transfer and cover the fee, the transaction would be rejected.

  3. The wallet will check the current fees that are paid to miners on the blockchain to make transactions and set the fee level close to the last done. In some wallets, users can set a fee themselves, but it’s not a guarantee they will be able to transact at that level.

  4. It could be possible to spread the number of recipients of the UTXO outputs to several wallets to make traceability more complex. However, with new developments in tracing of Bitcoin funds its seems this might be less effective than previously.

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#4243

  1. UTXOs are inputs of a receiving address. If there is no output after receiving a transaction, the inputs are still inputs, until the receiver spends anything.

  2. It would sum up the other UTXOs to get to the necessary amount to cover the transaction, if the sumup is higher as what you want to spend, it will return the rest to your account.

  3. The wallet will either propose the fees or you can choose it yourself, the wallet can calculate the fees from the previse fees.

  4. Make transactions to different addresses you are holding.

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#4244

  1. Unspent transactions are the output amounts sent to you on the blockchain that you can now use as inputs to new transactions. All amounts must be spent even if some is sent back to you to an account you control. Your Wallet calculates balances available for use.

  2. The transaction would be unconfirmed by the blockchain and rejected.

  3. The transaction fee is comprised of the difference between the input and output amounts. i.e. input - output = fee

  4. By adding another layer between yourself and the transaction by using another address that is controlled by you.

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