Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4425

Yes you are right. Tricky question but its clear now :slight_smile:

#4426

Answers:
1.UTXOs are the unspent amounts you received into your wallet.
2. There ıs a rule - sum of inputs should be sum of outputs.
3. It checks the block and see the fees to enter that block and then proposes the fee that is required to enter to the block faster.
4. One can not see how much of the spent amount is going to where. Some part of it could go to yourself and the rest could go to other third parties.

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#4427
  1. A UTXO is a transaction that has been sent to a user and is waiting to be sent to a different user.
  2. Then multiple UTXO’s have to be used to cover the transaction.
  3. The transaction fee is the remainder of the UTXO’s that is not sent to anyone in a transaction. Fee = Input - output
  4. By sending money back to yourself to different address’s it hides who is actually receiving the funds.
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#4428 
1.	Describe what Unspent Transaction Outputs (UTXO) are.

transactions that are received and unused, unspent. Available for future use.

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

Ones wallet will select a combination of UTXO’s that cover the transaction including the fee

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

input - output = transaction fee

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

The sender inputs a transaction that is sent to multiple recipients and one of those recipients could be an alternate address of the sender. In this case just by viewing the transaction from the outside there is no way to know which address if any actually belongs to the sender. This also could be the case of inputing a transaction to a single recipient it seems as it is not possible from the outside to see which portion of the transaction is going back to the sender because again one of the addresses could be an alternate address of the sender.

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#4429
  1. the wallet balance is an addition of all your utxos

2.Transaction wont be approved

  1. Input -output are the fees.

  2. Use new wallet soo you got a new private key

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#4430
  1. UTXO are money your wallet recieved, but it’s not spent yet.
  2. Your wallet will add up your UTXOs to cover transaction and a fee.
  3. It will pick the fee wich it thinks is the best. Input minus output is the fee.
  4. You could send funds back to your wallet trought diferent address created by your wallet.
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#4431
  1. UTXO’s are inputs and outputs plus fees of a transaction.
  2. You would gather more inputs
  3. the difference between the inputs and the outputs and useful wallets allow the user to specify the fee.
  4. Send outputs to multiple addresses
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#4432
  1. UTXO’s are the balances remaining in your wallet that have not been used for transactions
  2. Your wallet would use another UXTO to cover the amount of the transaction failing this then the transaction would be invalid.
  3. output - input
  4. multiple outputs can be used
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#4433

  1. UXTO’s are unspent transaction outputs which Bitcoin utilizes to generate transactions based on the summation of previous transactions for future spending.

  2. If you don’t have any single UTXO large enough to cover your transaction then you cannot spend it and the transaction will be denied.

  3. The Bitcoin wallet will calculate the transaction fee by taking the difference of the input and the output.

  4. You can increase privacy by sending Bitcoin from multiple addresses, using many inputs and outputs and route funds back to yourself, increasing the difficulty of identifying any single user.

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#4434

  • Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are the beginning and end of a transaction, it is the amount of digital currency remaining after a transaction is made

  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Your wallet would combine other single UTXO’s in your wallet until correct amount is met or exceeded. If it exceeds the amount required it will send it back to your wallet after the transaction is made like change from a purchase with cash.

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Most wallets have options for fees, regular fee or priority fee which would up your chances of getting your transaction put in on the next block.Transaction fees are determined by the amount of activity there is on the network and your transaction size.

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can use your inputs as outputs by sending them to yourself thus generating multiple addresses which cannot be linked to anyone person and would look like multiple separate transactions and users involved

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#4435

  1. Data from a previous transaction that defines how much of that digital asset you have available to spend.

  2. If you attempt to make a transaction with a single UTXO that is below the required value, you can combine UTXOs until that value is reached (deducting transaction fees). If you don’t meet the required value the transaction will be rejected by nodes on the network and the transaction cannot be fulfilled.

  3. Total input - specified output = transaction fee

  4. By creating multiple wallets with different keys you can make it more difficult for someone to identify based on the transactions.

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#4436

Describe what Unspent Transaction Outputs (UTXO) are

  • basically is a input. once you received such amount of btc and not spend it yet. it will becoming UTXO
    (total amount that you have)
    What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    -the transaction will be fail due to insufficient amount

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

  • by calculating the last fee from the same block that sum is enough to execute the transaction

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
using the new address that produce by the private key it self.

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#4437

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

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#4438

  1. UTXOs is data about the status and content of a wallet for a certain asset taking into account all transactions (incoming and outgoing) that have happened. It is all the outputs that havent been turned to the next inputs for some other recepient or the wallet owner him/herself.

  2. If that is the only UTXO in the wallet, then the transaciton would be impossible but if there are other UTXOs enough in total for the large transaction - they would be used.

  3. The wallet would do the calculation depending on the amount being sent and the intended amount to be received as well as the network status at the moment of the transaction. Fees act as incentives for miners to verify the transactions, there are some cases when wallet owner can spend higher fees to make sure the transaction is processed faster. The fee is visible in the transaction transcript.

  4. Since the transactions data does not specify the owners and there are no specific coins or banknotes as with fiat money, the input and output transactions do not automatically represent classical expenditure and income transactions and the exact “coin” used is not indended to be traced. I think this provides enough privacy in terms of not being able to interpret the exact transaction from the transcript but I guess I could also have transactions with my own other wallets or addresses.

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#4439

Describe what Unspent Transaction Outputs (UTXO) are.

A UTXO is the input of your transaction. In other word it is your current wallet balance.

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

The Wallet will summaries all inputs. If u dont have enough cash on ur Wallet the TX will not be accepted by the network.

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

The diffrents between inputs and outputs are the TX-fee

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

Greate a new adress and send the output u will not spend there.

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#4440
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Unspent inputs from previous transactions.

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

Additional UTXOs would be added to the transaction. You would receive back the difference between outputs and fee. If no additional UTXOs are available the transaction will not be validated.

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

Either by user selection or by assessing other recent transactions and setting a fee which ensures the transaction happens quickly enough.

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

Hold multiple wallets and send balance to one of these.

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#4441

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Total balance of 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 would not be confirmed

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

  2. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Being able to send to multiple wallets include the same wallet which no one knows accept the owner of the private key adds an extra layer of anonymity.

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#4442
  1. UTXOs are the amont coins that you can spend.
  2. You won’t be able to make the transaction
  3. According to the complexity of the transaction. More outputs = more complicated operation = higher fees.
  4. By splitting the transaction into more outputs so that is almost impossible to understand where your money are going.
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#4443

  1. A UTXO is an amount of bitcoin that’s been received but has not yet been used as input for a new transaction.

  2. If no single UTXO is large enough to make the transaction, your wallet will use more than one UTXO to cover the cost of the transaction plus the fee and send the leftover amount back to you.

  3. The fee is the difference between the sum of all inputs and the sum of all outputs. The wallet will choose the best fee for you based on the other fees shown on the blockchain at that time. Some wallets allow you to specify a fee.

  4. The blockchain does not show the balance of a certain address, it will only show the UTXO’s that were used in each transaction. The wallet will calculate your total balance for you. Also, it is impossible to tell if a person sent bitcoin to another person or just another address they control.

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#4444

  • Describe what Unspent Transaction Outputs (UTXO) are.
    Transactions you have gotten and you can spend

  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    It would put together all other UXTOs to get to a sum which is big enough to make the transaction and then send the rest back to you

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

the wallet will recommand a reasonable fee

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    generate new output adresses
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