Homework on Bitcoin Transactions and UTXO - Questions

[collectnft_og]

1. Utxo’s are unspent transaction outputs received from transaction inputs to your public key address, equaling to balance that your wallet can spend.

2. If you don’t have a single output that is large enough to cover your transaction, the wallet will add up the total sum of outputs you have and attempt to transact. Transaction will fail if there is not enough total outputs to cover.

3. A bitcoin wallet will do a function like f(fee) = input- output. To calculate the transaction fee.

4. Because a bitcoin transaction always has more than one output in a transaction, you can increase privacy by sending outputs to more than one address in which you have control of private keys.

[Alko89]

@lextiby

The transaction won’t be executed.

@aarigs

Transaction is going to be rejected and it won’t be executed.

@Chad

If the blockchain indicates that a user has insufficient UTXO then a transaction cannot be executed.

@PALEVAMPIRO

Transaction would be rejected

You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then your tx won’t happen.

[Tito_RuizG]

1. UTXOs are unspent outputs from previous transactions.

2. You must use all the UTXOs available enough to cover the transaction, even though the sum of them is larger than the amount to pay. But you’ll then receive the change.
   Or if you do not have enough to cover the transaction’s amount, then it won’t be possible to cover it.

3. the difference between inputs and outputs.

4. Use a different adress for each transaction.

[Bernardini]

UTXOs are how the input is divided after the fees have been deducted. Input - fees = output = sum of UTXOs

You would use a sum of two or many UTXOs. The change you would send back to yourself.

It would estimate the fee based on the fees fees paid in previous blocks

You could mix up your own addresses as output receivers, as addresses do not hold any personal information

[A.Eles]

1. UTXOs are outputs from previous transactions that have not been spent yet.

2. The transaction would not be accepted.

3. The fee is never specified as it is calculated by the wallet as input minus the output.

4. By having multiple output addresses for each transaction received.

[Taro]

1. Describe what Unspent Transaction Outputs (UTXO) are.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

Unspent transaction outputs are made up of remaining balances from blockchain transactions. These can be stored in a wallet.

When you don’t have enough coins in one UTXO, your wallet will select enough UTXOs to cover your transaction. If there are any coins left after the transaction and fees, you could specify which wallet to send the UTXO to.

Some wallets offer different transaction fees based on how fast you would like the transaction to take or some wallets pick the transaction fee for you to optimize your transaction. Either way, you pay for the transaction fee.

If I were talking to someone new to Bitcoin.I might explain how the inputs go through the blockchain and arrive at the respective output(s). The outputs are new transaction results that don’t contain the the previous sensitive information, so privacy is preserved.

[Bitborn]

1.)Describe what Unspent Transaction Outputs (UTXO) are.
-The amount of bitcoin that someone is holding and has not yet sent to someone else is a unspent transaction output. In other words it is the available funds not yet spent.
2.)What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
-The system would prevent you from making any transaction as you need the funds to do so.
3.)How would a bitcoin wallet specify the transaction fee when creating a transaction?
-The fee is input – output but can vary depending traffic on the overall blockchain.
4.)How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
-Increasing the number of inputs and outputs is one way to increase privacy as it is hard to track the source and destination of funds. The owner of the input cause also be the owner of the output, essentially sending funds to himself in a different wallet/address.

[MFLittle]

1 - UTXOs are inputs into any transaction that you create. They represent transactions where you were the recipient.
2 - If you don’t have a single UXTO that will cover the transaction, you need to use multiple UXTOs.
3 - Bitcoin wallet suggests a transaction fee or some wallets let you set your fee. Fees can also be implied by Inputs - Outputs.
4 - You can send outputs back to yourself as no one can tell who controls the accounts the funds are sent to.

[Coggmik]

Uxto are bitcoin that has been sent to you but that have not been spent…they are your available bitcoin funds.

If you don’t have a single Uxto large enough, you can combine multiple uxto with the balance being sent to yourself (like change)

The fee= inputs-outputs

By sending inputs to multiple outputs it becomes very difficult If not impossible to determine the owners of the different wallets

[derok]

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

UTXO’s are essentially the balance of a given wallet. They are outputs from a previous transaction that have yet top be made inputs into another transaction on the block chain network.

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

A wallet will continue to use multiple and available UTXO’s to cover a transaction and then send back any surplus back to the wallet address minus the value of the transaction and the transaction fee. If no single UTXO or a combination of available UTXO’s cannot cover the transaction, then the transaction will be declined.

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

A bitcoin wallet will review previous transactions on the block chain and propose a fee to the user. The higher the fee relative to the average fee, the faster the transaction is likely to be executed.

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

An end user could control multiple wallet addresses. By sending outputs to multiple addresses under your control you could maintain a higher degree of privacy.

[benlive]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXOs are outputs person got from transactions and which he could use as an inputs to create other transactions.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   Then UTXOs adds up and sum of all UTXOs covers the transaction.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   Wallet often suggests a fee amount, but in some wallets you can choose it.
   It is calculated by formula: fee = input - output.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   You can increase privacy if you send transactions to multiple outputs.

[mareng91]

1. UTXO are bitcoins i have recevied to my adress.

2. The transaction won´t occur.

3. input-output= transaction fee

4. i can send the change of the output to a diffrent adress that is owned by me.

[a.l.a.i.n]

1.An UTXOs (unspent transaction outputs) are the transactions which came in to your wallet and are still available. UTXOs are like coupons. If you get 1BTC from your friend and 1BTC from your mom and you want to buy something for 0.5 BTC you’ll have to use one of these coupons and send it in whole. The remaining 0.5 BTC will be sent back to you.

2.If you’d like to buy something for 1.25 BTC now you don’t have a single ‘coupon’ which is big enough to pay for it. So you’ll take both your ‘coupons’ send them together. Afterwards you’ll get back the change of 0.25BTC as another ‘coupon’- the fee.

3.There are two kinds of BTC wallets. With the first one you may choose the transaction fee but the lower the fee you choose the slower the transaction will be because the miner will prioritize the transactions with the highest fees since the fees are payment for them.
The second wallet will choose the fastest and therefore the most expensive transaction for you automatically

4.You could create more transaction addresses for yourself and send the change back to another address of yours therefore others could only guess which amount you spent and which is the change .

[Helena1]

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

UTXO is unspent money sitting in your wallet that is available to spend.

2. If you do not have a single UTXO large enough to cover your transaction the balance of the unspent transaction output will be refunded back to your wallet.

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

The bitcoin wallet would look at the previous transaction fees that were used and choose the transaction fee that will get into the blockchain the fastest.

4. When looking at transaction inputs and outputs one cannot tell who the transaction is coming from and this increases privacy in your transaction.

[LeticiaMentz]

1. Describe what Unspent Transaction Outputs (UTXO) are.
It is bitcoin you have received, but not spent yet. So, inputs that have no outputs yet.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
My wallet will look at the total value of all my UTXOs to see if there is enough, combined. If not sufficient combined UTXOs, the transaction can’t happen.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
Transaction fees are calculated by the wallet, based on current network conditions and the transaction size. In some cases, one can specify the transaction fee.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By creating multiple bitcoin addresses (i.e. wallets) and sending outputs do different wallets.

[Richieloco]

1. The balance in your wallet
2. The wallet would add both inputs, and send out an output with the amount you want + another output back to your wallet with the rest
3. UTXO output - input = fee
4. Create different addresses to send money to

[Alko89]

@mareng91

The transaction won´t occur.

You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then your tx won’t happen.

[Mickey_McClimon]

1: UTXO’s are the sum within your wallet of how much you can spend.
2: The wallet would see you don’t have enough UTXO’s to cover the transaction and you will need to put more in your wallet.
3: The wallet subtracts the input from the output and that becomes the transaction fee.
4: Having multiple addresses for the funds to be sent to you is very important.

[ursinade]

1. UTXOs are transaction outputs sent to your address that have not yet been used as an input for other transactions. Simply put, this is the money which you have received, but not yet spent. If you sum up all the UTXOs of your address, this would reflect your “balance” for that address.

2. You would have to use multiple UTXOs as input so in sum they cover for your transaction. If the sum (minus fees) exceeds the output to whoever you want to send bitcoin to, your wallet will add another output which transfers the difference back to one of your addresses.

3. It will look at the blockchain and, based on the latest used fees, propose a fee that gets your transaction on the blockchain “fast enough”. When actually creating the transaction it will construct the inputs and outputs so that sum(inputs) - sum(outputs) = fees. The fees themselves are not stored anywhere, because they can be calculated implicitly.

4. You could use several of your own bitcoin addresses as outputs, thus masking a distribution of assets, because nobody can know if you actually sent bitcoin to other people’s addresses or to yourself.

[diegosan]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXOs are transactions we receive on our wallet (inputs), and that are available for us to send (spend).

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   Our wallet will add our UTXOs together to cover the transaction amount and fee.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   A btc wallet will automatically recommend a fee after analyzing the blockachain. Or it can calculate the fee based on the difference between the inputs and the outputs that the wallet’s owner has decided.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Since all transactions in the blockchain(inputs and outputs) are represented in code, it is impossible for someone to identify who created the transactions.