Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4385

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 would be rejected. :slight_smile:

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#4386

Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs are amounts of crypto that a person has received through their addresses and are currently holding as their wallet balance. They can be spent from the wallet and then become new UTXOs for the recipient.

An example looks like this: You receive .2 BTC from person A and .3 from person B and .5 from person C, in total you have 1.0 BTC that you can now spend. Your total UTXO add-up is one full coin which you can then send to another person’s address and continue the cycle of UTXOs.

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

In this situation, assuming you had the full amount in your balance, you would send two UTXOs that cover the cost, and then you would have a portion of the amount sent back to you yourself. This is similar to using money as bills. For example, you choose to buy a $7 item for two $5 bills. You hand over both bills and then receive change from the remaining amount of the transaction.

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

The Fee in a transaction is the remainder after the input and outputs are calculated. The fee amount is calculated through the wallet and is usually automatically based on the previous fee amounts in the blockchain and in some wallets can be manually adjusted based on the users’ decisions. Inputs = Outputs + Tx Fee

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

The notion of transaction inputs and outputs increasing privacy is valid. This is because there can be multiple inputs and outputs, in one transaction including the new recipient, and also the original sender themselves. It’s difficult to know what portion is going to the recipient or what is going back to the sender’s other address as a UTXO. The Input and Output addresses are also several number and letter characters long and do not contain the sender or recipient’s real names or specific information which increases anonymity.

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#4387

So in my first answer, I just needed to include that unspent UTXOs are my “balance”?

And in the second quoted answer, I just needed to suggest adding multiple UTXOs to be able to complete the transaction? THEN, if I didn’t have enough the transaction would be rejected?

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#4388
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • UTXO’s are data records of the TX outputs broadcast to the blockchain that have been confirmed to your wallet.
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • This question does not make sense. No ‘single’ UTXO is utilized to create a TX. If there is only one UTXO onchain for a given TX that is insufficient to cover the total cost of said TX then the TX will be dropped by the network.
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • Again, I am not sure I understand this question at this stage of my education. How? I don’t know. But I know that better designed wallets do allow a sender to have some say in how much in fees they will pay.
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

By sending your balance in various outputs to addresses that you control.

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#4389

  1. UTXOs are simply the amounts of crypto a wallet received from various other wallets whether those wallets were owned by the same person or not. These amounts can be sent to other wallets in which case they become UTXOs for the recipient.

  2. Based on how the question is worded, if my wallet contains only 1 UTXO and it is insufficient to cover the TX costs of what I am trying to buy, the network will simply drop the request.
    Should I have multiple different UTXOs allocated to my wallet, 2 or more of my UTXOs will combine to cover the costs of my new TX costs and the difference will be sent back to me (minus any fees incurred). This is the concept of 2x $5 bills for a $7 item.

  3. The fee is specified by subtracting the Output my wallet is sending by the Input the recipient’s wallet is receiving. In some cases, the wallet automatically suggests the best fees to charge, or in other cases, the owner of said wallet can modify the amount to improve the speed and success of the transaction

4)By utilizing multiple wallet addresses owned by the same person. By bouncing funds around or using different addresses for every transaction, the person is creating multiple branches of unique private keys which makes it harder to correlate the funds back to that original owner.

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#4390

1.UTXO is the money in your wallet from inputs
2. no transaction possible
3. input-output=fee
4. male use of all possible different addresses when receiving, however due to the nature blockchain is already very secure

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#4391
  1. Outputs of an address that was not yet used as input by another address
  2. if the sum of UTXOs is enough to cover the TX the wallet will combine the UTXOs and send the “change” minus the fee the back to your address (you always have to spend all UTXOs). If the sum is not enough the network will ignore the TX
  3. Fee=input-output
    based on earlier paid fees the wallet calculates a fee that gets your TX reasonably fast into the blockchain
  4. use various addresses controlled by yourself in order to receive “change”
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#4392

  1. The total transactions that have been input in wallet, and can be spent (which will then become the output of the TX)

  2. The UTXO’s of the address will aggregate to check if the total amount is greater than what needs to be spend. Then a transaction will be created with two outputs, one with the amount that needs to be transacted and the remaining one (minus the fees) will be transacted back to the wallet (kinda like taking change from giving a bill).

  3. Fees = Input - Output

  4. Only a hash is shown in the blockchain, it is not by default connected to a name

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#4393
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are Unspent transaction outputs that your wallet sums together all of your outputs giving you your balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    It will add up multiple utxo’s to add up the difference and enough to cover the transaction fee.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    There are some wallets you can select the fee and others the fee is caculated based off previous fees on the blockchain. The fee is the difference of the inputs and the outputs.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? You don’t know the user addresses so you don’t know if the money was sent to someone else or back to the user creating anonymity.
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#4394
  1. A UTXO is your unspent transaction power. It’s your wallets job to calculate your UTXO’s and give you a balance of bitcoin. UTXO’s basically are your bitcoin.
  2. If you lack the UTXO to carry out a transaction it will no be confirmed due to insufficient funds.
  3. A bitcoin transaction fee is calculated by the difference between the inputs and the outputs. input-output= transaction fee(goes to miners)
  4. Because an output can be an address back to yourself you’re able to secure multiple addresses making for better security.
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#4395

A UTXO is an output from a previous transaction. The receiving wallet of the UTXO then has that amount available to create a tx. This UTXO will be used as an input to create another UTXO to another or the same wallet address.

You won’t be able to send the tx.

It will check the network and give appropriate fee to get the tx through reasonably fast. The fee is the added to the output. Input (UTXO’s) = output + fee

By sending to multiple addresses, some could be your own, some could be others. No one really has a way of knowing unless they know the wallet addresses.

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#4396

Why wouldn’t you be able to use a single UTXO for payment if its large enough?

#4397

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

#4398

1)Describe what Unspent Transaction Outputs (UTXO) are.
They are a balance which is awailable to use, can be spent. It is output of a sender which become an input for a new transaction

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

  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It would calkulate: all inputs are distracted from all inputs

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

Transaction with two and more outputs-one to me, it is not recognazible how much I send back to me and if I everytime refresh my wallet address it’s not traceable

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#4399
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    • Whole or fractional outputs of a transaction sent to a receivers address. The total UTXO is the wallet balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    • The transaction would fail as Output ≠ Input + TX Fee
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    • The wallet will check the network and give a reasonable fee to get the transaction through in an appropriate amount of time.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    • Send transactions to multiple addresses that you control.
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#4400
  1. Transactions sent to a destination that are not spended from this destination
  2. Merging this UTXO with other/s UTXO
  3. Fee is not specified. Fee is the result of substract input minus output.
  4. Redirecting transactions to me with other addresses.
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#4401

1Describe what Unspent Transaction Outputs (UTXO) are.
Unspent transactions are the transactions that i received in my private key wallet.They are the change from previous transactions and also the balance left to me to spend in future transactions.
2What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transation would not occur
3How would a bitcoin wallet specify the transaction fee when creating a transaction?
It would calculate the fee having the difference between inputs and outputs
4How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
The privacy is already guaranteed because the transactions are anonymus by always generating new addresses. No one knows except the private key owner

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#4402
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are the sum of outputs of a TX that you received. Basically putting together all yours Unspent TXO your wallet is able to tell you your available balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    You can sum up with other UTXO (if you have) and use them to cover the transaction and then have back the difference as a new UTXO (as change if you pay 7 USD with 2 banknotes of 5 USD).
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It will calculate it automatically based on the number of TXs being executed in the network at that moment. The more the TXs executed the higher the fees will be.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    The distibuted ledger is open to be browsed by anyone and it contains all TXs with all wallets addresses, but you don’t know to whome the wallets are associated.
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#4403

1- An UTXO is the output from a transaction that can be spent. The sum of all your UTXO’s is your balance.

2- All UTXO’s would be added together. If the value is large enough the transaction can take place but if it isn’t, the transaction would be ignored.

3- Fees = input - output

4- You could increase privacy by redirecting transactions to other addresses that you control

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#4404

1.UTXO are the inputs in your wallet that can be spent.
2. You are not able to spend it until you have more utxo.
3. fees= Inputs- outputs.
4. adding yourself to the inputs and outputs

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