Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4605

Your wallet will calculate the sum of your total unspent transactions to equal the amount needed, if not enough the transaction is not allowed to take place.

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#4606

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    All past incoming transactions that are not spent yet. So it’s basically your balance.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The transaction will be rejected on the blockchain network caused by a shortage of funds/coins

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fee is part of the transaction, it is the difference between both the input and output

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Bitcoin enables several outputs in one transaction. Each output can get sent to different addresses specified in the transaction, including one or more addresses that you control the private keys of. The address format means owners are anonymous.

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#4607

  1. Unspent transactions Outputs are the sum of the input transactions that are send to the user and the user can spend it or transfer it.

  2. If I don’t have any single UTXO or the UTXO isn’t larger enough to cover my bills then the transaction will fail completely.

  3. It will look at the previous transactions and make up the fees or in some wallets they as you for how much fees you want.

4.You can simply change address every time you want and this simple change can increase your Privacy.

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#4608
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • UTXO are inputs of transactions that have not been spent as of yet.

  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    *You will use multiple UTXOs to create a value large enough to cover your output and transaction fee then you’ll receive the balance back as a new UTXO.

  2. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    *The fee would be specified as the Input - Output = fee

  3. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    *Because the inputs & outputs don’t specify to whom the outputs are being transferred, it’s not evident to whom you are sending BTC or how much, since it’s not obvious which output is the recipient and which is the balance going back to the sender.

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#4609

1. Describe what Unspent Transaction Outputs (UTXO) are.
The ballance available on the wallet

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

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet specifies tx fee by checking the blockchain and calculating the fee amount.

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

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#4610

  1. They are outputs from other transactions that are not spent yet.

  2. The other UTXO’s you own would be added until you have enough to complete the transaction.

  3. The wallet specifies the trans fee by subtracting the input from the output.

  4. You would create more output addresses.

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#4611
  1. As crypto holders , we aren’t actually holding coins on our wallets/ledgers. We are holding them on the blockchain and we can unlock them with our private keys. UTXO is the acronym for unspent transaction output. This basically means what we have available on the network to unlock with our private keys for spending.
    2.The transaction would not pass trough since it wouldn’t be confirmed by the networks nodes.
    3.It would subtract the UTXO input from the UTXO output
    4.Make use of different addresses
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#4612

1.bitcoin left in the wallet.
2.The transaction won’t be confirm.
3.substracting the input from the output.
4.use different address for each transaction.

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#4613

  1. A transaction exists of inputs and outputs. A UTXO is basically a recieved input that hasn’t been spent yet by the reciever.

  2. The transaction will not go through as the miner would not be able to be paid for his work

  3. The fee would be specified as input - output = fee

  4. By creating multiple outputs it is almost impossible to figure out what is the real transaction and which funds are being sent back to your own wallets

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#4614
  1. Unspent Transaction Outputs are outputs from a previous transaction that are available and have not been spent.
  2. If you do not have any single UTXO large enough to cover your transaction then the transaction will be declined.
  3. The bitcoin wallet specifies the transaction fee when creating a transaction by substracting the input from the output.
  4. From the outside it is impossible to know which output went where, to the recipient, to the sender and there can be multiple outputs. That increases anonymity in transactions.
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#4615

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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#4616

  1. UTXO represent transactions of unspent bitcoins that other wallets have sent to a particular wallet (lets call it my wallet) - inputs to my wallet. The sum of all UTXOs represent the balance of bitcoins I have available to spend.

  2. It does not matter if no one single UTXO is not large enough to cover a transaction I want to execute (i.e. spend Bitcoin). This is because one output from my wallet - the amount of bitcoin I want to spend, can be made up from multiple UTXOs. In fact when I want to spend bitcoin in a transaction, I must use up all the available UTXOs. Inputs = Outputs + txn fees. So if the transaction for my spend is less that the sum of the UTXOs, then there will be another output that represents the excess value from the UTXOs, less transaction fees.

  3. The wallet should calculate the fee. Fees can vary based on the fees that miners charge. The higher the fee, the higher the incentive for the miner to add the transaction to the latest block. The lower the fee - miners may take longer to add the block.

  4. Transaction inputs and outputs simply identify the payer and payee using a bitcoin address - no names or other personal data. So it becomes very difficult to work out from viewing the transaction who are the payees and payers, or any information about the payers and payees.

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#4617

  1. UTXO is the amount of bitcoin you have in your wallet which have not yet been spent / that can be spent

  2. Your wallet adds all your UTXOs.

  3. Transaction fee = transactions inputs - transaction outputs (it can be selected manually in order to try to speed up the transaction)

  4. Use many inputs and outputs in order to increase the privacy within the transaction, this makes it harder to guess how much of it you received back

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#4618
  1. UTXOS is the balance in your wallet
  2. An input will be created with more than one UTXO until the amount is reached.
  3. Input - output the fee is the difference.
    4.You can see the transaction or transactions but you have no way of understanding the combination of numbers and letters to decipher who or where they are going to . The more outputs the more anonymity.
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#4619

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’s are data representing the crypto you have received but not spent.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    You would need enough total UXTO’s for the required transaction amount including fees; otherwise, the transaction will not be broadcast by the wallet.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A transaction fee is implied by calculating the Input minus Output

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Given the relationship of a transaction to a set of input address is 1:many and the relationship between a transaction and recipient(s) is 1:many, tracing the transaction is very difficult providing a certain level of privacy. Additionally, every wallet has a unique public address and an individual can have multiple wallets.

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#4620

UTXO are basically like cash in your wallet - it is what you have to spend

  1. You would need to use two or more UTXO to cover it

  2. It is the difference that is left when the output is subtracted from the input

  3. You can have multiple inputs and outputs and only the private key holder can know what transaction is his/hers

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#4621

  1. UTXO’s are transactions that have been sent to your wallet and are available for you to spend.

  2. If you do not have enough in a single UTXO, then money will be taken from multiple UTXO’s and the change left over will be sent back to your wallet as a new UTXO.

  3. The fee is not specified but rather implied, and can be worked out by subtracting the output from the input. The wallet will usually check the blockchain for reference as to how much the fee should be (this fee can change based on network congestion).

  4. You could increase your privacy by using multiple receiving addresses.

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#4622
  1. UTXO are outputs that are unspent from transactions
  2. The transaction will not be accepted or valid.
  3. Input - Output = Fee
  4. Different wallet or address
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#4623

  1. UTXOs is basically an accumulation of all the unspent btc you have based on the transactions sent to you.

  2. If there is not one single UTXO large enough to cover a transaction, it will try to use a second UTXO, but if your private key does not have a balance to cover the transaction, it will not go through.

  3. Inputs - Outputs

  4. You could add multiple inputs and outputs with varying combinations of recipients to make it harder to figure out whos getting what.

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#4624

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    inputs in a wallet that have not been sent out

  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 unless there are other UTXOs to cover the sent amount and the fees

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    some find the ‘going rate’ from the blockchain and some allow you to specify or choose

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

Use a new address for each new input or payment.
Use multiple wallets for different transactions.
Privacy is hard to achieve, hence the appearance of coinjoin and tumbling and mixing - and privacy coins.

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