First 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.
- UTXO’s are the output of a transaction that is unspent, and will be used as the input to your next transaction.
- If you don’t have any single UTXO that is large enough to cover your transaction it will use another UTXO until you have enough to cover the transaction.
- The wallet fee is the inputs minus the outputs. It is typically calculated automatically by the wallet software you are using, and the fee goes to the miners.
- You can increase the privacy of your transactions by creating an output that is an address you own in addition to the outputs that go to other addresses.
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1-) Describe what Unspent Transaction Outputs (UTXO) are.
= Money received from previous tx
2-) What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
= Tx fail/ rejected
3-). How would a bitcoin wallet specify the transaction fee when creating a transaction?
= Wallet will check the most recent fees paid on the blockchain and can be calculate by using the formula i.e. input - output = fees
4-) How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
= Use a new address for every transaction or use multiple output addresses.
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- Describe what Unspent Transaction Outputs (UTXO) are.
Unspent Transaction Outputs are anything that you’ve received that you haven’t spent. Wallets use UTXOs to calculate your available balance.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The nodes would reject your transaction and not pass it on to the miners.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
A bitcoin wallet will look at the blockchain to see recent transaction fees and give you a fee to get you into the blockchain reasonably fast. Some wallets will give you an option of how much you can pay. Higher transaction fee = faster transaction.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By constructing a transaction with as many inputs as possible and as many outputs as possible.
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Describe what Unspent Transaction Outputs (UTXO) are.
total of UTXO registrated on the blockchain -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
no transaction -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
UTXO minus UTXO input = fee -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
use a private blockchain
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Describe what Unspent Transaction Outputs (UTXO) are.
Unspent Transaction Output is the output of a processed and approved transaction until it becomes an input to the following transaction. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
You combine the available UTOXs to perform the transaction and get the change back. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
It proposes the fee that will make the transaction appealing to the miners to proceed it. Miners always get prioritise the transactions with bigger fees on them. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are unspent transactions that are received by a user address (Private Key), and is listed on the blockchain ledger. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If I don’t have a single transaction large enough to cover the transaction I will need to send another UTXO to cover the difference just like paying in dollars with different denominations, I will need to get change back in the transaction currency as an input transaction. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Bitcoin wallet specifies the transaction fees by the calculation of input transaction equal to the output transaction plus the transaction Fee
Input = Output + Fee -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Input and output transactions use different public addresses created by private keys, there is no way of knowing the input and output addresses and who they belong to without all private keys involved.
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- Unspent Transaction (TX) Outputs are unspent amounts in the wallet.
- Several UTXOs are added together to cover the amount that must be sent (including the fee).
- In practice, the wallet subtracts the inputs from the outputs to calculate the fee.
- Multiple input & output addresses are used (for transactions received and sent).
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are outputs that have been received by various wallets that have yet to be used as inputs to new transactions.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet would combine additional UTXOs, if available, that your private key can spend until the total is greater than the amount needed for the transaction
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
It would observe transaction fees in the most recent blocks and estimate the fee needed to have the transaction accepted by miners
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You could continuously use new wallet addresses to receive the remainder of each transaction instead of sending it back to the original address it was sent from
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BITCOIN BASICS
Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are unspent transaction that have not yet been referred to by a transaction input. These are inputs you received but have not yet spent.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet will use more than one UTXO until the total is equal to or greater than the amount you are spending. Inputs must always equal output plus transaction fee. Therefore, if the sum is greater than the amount needs, the excess will be sent to your wallet.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Bitcoin wallets calculate transaction fees based on the transaction size, network conditions, and fee priority. Fees, which are implied, are the input minus the output (transaction plus fee).
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By using a new wallet address each time you send the excess back to yourself. Using a new wallet makes it hard for people viewing the transaction to determine if the excess is going back to you.
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- UTXO’s (unspent transaction outputs) are inputs which have not been spent yet.
- If you have a UTXO which is not greater than your desired output spend, the output spend transaction will be denied.
- The transaction fee will be similar to current transactions to get you into the blockchain faster.
- Use the notion of inputs and outputs to increase privacy = the transactions happening in your wallet use your private key and are recorded in hash format.
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Unspent Transaction Outputs are the inputs of old outputs from previous transactions. Your wallet sums up these UTXOs, and it gives the balance.
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The transaction will get rejected. It is like going shopping without a wallet.
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Input minus output. The fee is calculated by your wallet.
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Nobody will be able to figure out your balance. Also it will make others difficult to figure out how much you spent.
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- It indicates howmuch unspent Bitcoin a certain wallet has. Basicly it’s the wallets balance.
- You use all UTXOs that belong to your wallet. You spend your entire balance each transaction, but send to remaining BTCs back to your own wallet. If the total UTXO (wallet balance) is lower than the amount you wanna send (including TX fee) then the transaction won’t go thru.
- The wallet checks the network congestion. Then it calculates how much the tx fee should be to get the transaction thru within an estimated timeframe.
- By using new and multiple addresses, so it’s harder to see howmuch BTC goes back to the sender.
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- A UTXO is the amount of digital currency remaining after a cryptocurrency transaction is spent.
- If a single UTXO isn’t large enough to cover the demand for your transaction, it will be invalid.
- input = output + transaction fee
- Sending multiiple transactions to different addresses which is owned by one individual. This makes a person observing the blockchain unable to determine if all those transactions is owned by the sender or owned by multiple owners. This gives a layer of privacy.
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UTXO’s are unspent transaction outputs that can be used as inputs to a transaction.
Every UTXO can be spent only once.
Other UTXOs will be added. If there’s not enough to cover the TX, the TX is not valid and will not take place.
Fee = Input – Output.
Some wallets specify the optimal fee by checking what’s available on the blockchain…
By the use of different addresses (for recieving transactions). like a 
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Homework on Bitcoin Transactions and UTXO - Questions
- Describe what Unspent Transaction Outputs (UTXO) are.
They are inputs that you receive and can spend.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction will not be valid and will not be processed.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
Fee = the inputs - outputs.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
U can use multiples addresses for your transactions.
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You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then your tx would be rejected. 
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Describe what Unspent Transaction Outputs (UTXO) are.
The balance in your wallet -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Will combine UTXOs and return the change -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Based on previous transactions. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Use a different address to receive new transactions so you cannot tell it goes back to sender
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are transactions sent from one person to another that are not spent by the recipient. They are tracked by Bitcoin network. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet would assess what other UTXO’s are available to combine to fulfill the transaction. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
-The wallet searches current transactions on the blockchain and what fees are average for transactions going through quickly. It is (input - output = fee). -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Because you can only see the public key of the transaction, not their name or private key. Also you can have multiple addresses for yourself.
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I would like to share a link about UXTOs comparing them, like Ivan did in his video, to bills of our everyday fiat currency.
Reading time about 5 minutes.
https://blog.komodoplatform.com/en/whats-utxo/
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