Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4665
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Utxos are how a wallet constructs a transaction it does so by combining all your past inputs into a balance which you can then use to spend

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

It would add a bunch of other transactions that were inputs that added up to the total of the transaction so the blockchain could read it

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

By reading it as the difference between inputs and outputs

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

Because nobody from an outside perspective would know what’s what allowing for more security

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#4666

  1. UTXO Unspent transaction Outputs are the available funds in your wallet.

  2. Then more then one of the available UTXOs will be sent, the sum of the many UTXOs will need to be greater then the amount sent to the recipient and the remainder is sent back to you minus the transaction fee.

  3. The wallet looks at the current fees at the time of the transaction and will pick a reasonable fee, unless you specify a fee.

  4. By using multiple addresses / accounts in your wallet.

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#4667
  1. UTXO’s are the balances you have available to spend on a wallet.
  2. if there’s no UTXO there’s no transaction
  3. BTC wallets attempt to recomend a reasonable fee based on Tx size and current network activity and avg fees that are being paid to miners
  4. You can construct a Tx made of several inputs and outputs
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#4668

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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#4669

1.Unspend transaction output is like the currency bills/coins in you pocket walled. Depend how many they are they can tally up to tottal sum. When your doing a transaction you need to send enough plus fees in for of output. At the end you will receice the change in form of input and so on keep going! Your wallet does all the processing and broadcasting of the transactions!
2. If you dont have enough funds transaction will not be verified.
3. The Differece between the output and input = the fee charged.
4. Using transactions with diffrent publick key can increase privacy in your transactions.

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#4670
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Inside a wallet, contracts are signed and broadcast as transactions. UTXOs track which transactions going in and out are unspent. Therefore, if a transaction is sent, it is no longer considered unspent, but spent and vice versa on the receiving end.

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

When a UTXO is too large, the transaction will be declined or insufficient. Therefore, the amount inside the wallet cannot be verified and cannot be sent out.

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

A wallet does not specify the fee. What it does is give you the input and output amount in which the fee is integrated. Therefore, the difference between the two yields the miner’s fee.

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

Having transactions sent to a single input address may put it at risk. Therefore, similar to putting all your eggs in one basket, multiple wallets is recommended for inputs and outputs.

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#4671
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’S are outputs received from transactions which is where your money is coming from.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple UTXO’s (more than one input) would be used in this scenario to cover the output needed; the remainder should be sent back to yourself and used to cover the fee.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fee would be inputs minus outputs and/or is calculated using data of past transactions to get your transaction on the blockchain.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can send one input (one UTXO) to multiple outputs (UTXO’s) back to yourself.
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#4672
  1. UTXOs are the amount of BTC that is sent to you and is your input. It is the balance of whats in your wallet.
  2. If you don’t have a single UTXO large enough to cover a transaction, you must use the sum of your UTXOs to cover the transaction, and send the rest back to yourself. If you dont have any other UTXOs, then the transaction will not be valid and will never take place.
  3. A bitcoin wallet would specify the TX fee by taking the Input-Output= TX fee.
  4. Because you are allowed to send BTC to multiple addresses in a single transaction, you can split payment up by sending partial payment to 2,3,4 etc. addresses, and then send the leftover back you yourself the same way to however many BTC addresses you have. This will make it harder for someone to look at the blockchain and determine how much BTC was actually intended for a purchase.
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#4673
  1. the total UTXO is the wallet balance
    2.There would be no transaction because there isn’t enough input UTXO’s
  2. UTXO minus UTXO input = fee
  3. Use a private blockchain or use several addresses and smaller outputs can result from on larger input
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#4674

  1. UTXO describes the sum of all transactions that your wallet received and has not spend yet.

  2. the transaction would not be verified by the network.

  3. the fees are based on network traffic and what you are willing to pay for your transaction to go through. i found ivan´s explanation a bit odd and not really describing the process. also there is segwit transactions, which reduces fees. there is also the development of lightning network to reduce fees even further. and you can check mempool.space to see what the current rate is to adapt your fees accordingly (if your wallet allows that)

  4. by generating a new address per transaction, thus making it harder to follow transactions.

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#4675

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are unspent outputs from a previous transaction. Any input should equal to the output plus fee in any transaction.

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It would specify but subtracting input from the output.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    It could increase privacy by sending the outputs to different addresses that could include to oneself.

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#4676

  1. UTXO’s are outputs from previous transactions that haven’t been assigned a new transaction yet.

  2. The wallet would group more than one transaction together to cover your transaction plus fees, then send back the difference to you.

  3. By checking the blockchain for the going rate for your transaction.

  4. By avoiding using the same address for too long.

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#4677
  1. Describe what Unspent Transaction Outputs (UTXO) are. - UTXOS are a balance of unspent Bitcoin in a wallet.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? - A sum of several smaller UTXO can be used instead. If that is not enough, the transaction will be declined.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? - Input minus output will be the transaction fee. The wallet will look at past transactions and take a similar fee.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? - It can be done by creating several outputs including the one where you will receive a UTXO after the transaction.
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#4678
  1. UTXO is the balance left in the wallet, which is tracked.
  2. The transaction won’t go through
    3.The blockchain will verify the transaction and figure out the correct fee
    4.Using various inputs and outputs.
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#4679

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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#4680

  1. Describe what Unspent Transaction Outputs (UTXO) are?
    Its the balance of what is in your wallet and represents funds that are not spent yet

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Inputs minus outputs = fees

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Use multiple addresses to send and receive transactions

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#4681

Describe what Unspent Transaction Outputs (UTXO) are ?
-whole or fractional outputs of a transaction showing in you wallet

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

  • transaction declined

  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It will check the balance and calcute the output+ fee.

  2. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Through many inputs and outputs. (using different address )

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#4682

  1. UTXOs are altogether your current balance on the wallet, which can be used for transaction.

  2. There are 2 possible scenarios. First - if you dont have any UTXO, your transaction will be rejected.
    Second - if you have more UTXOs, but not even one is big enough to cover whole transaction, than your wallet will use 2 or more UTXOs and thru the transaction it will send you back your unspent amount of BT (example of payment with two 5-dollar bills for 7 dollar item)

  3. Bitcoin wallet will check on blockchain, what is reasonable fee to make transaction possible in reasonable time.

  4. Use multiple addresses for input and multiple addresses for output of transaction.

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#4683

Thank you so much for the additional insight!

#4684
  1. Describe what Unspent Transaction Outputs (UTXO) are. These are inputs to the wallets (outputs from previous transactions), where each wallet sums up its input UTXOs and can make further transactions with them. Every UTXO can only be spent once.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Simply the wallet will not do the transaction when you do not have enough UTXO(s), otherwise it sums them and sends the recipient the required amount of BTC plus calculates the fees and sends back the remaining BTC.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? The wallet application checks the previous transaction fees then calculates the best option to be accepted fast enough for the next block.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction We do not actually know which wallet belongs to who if we look the transactions from outside, the sender also could be the owner of the recipient address too.
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