Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4805

1-UTXO is the balance you have to spend in your wallet.
2-If my UTXO is not enough, the transaction will not be covered.
3-The wallet calculates the fee by verifying on the blockchain, the difference between input and output of the transaction gives us the fee.
4-Using different address to receive each time.

2 Likes
#4806

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.

1 Like
#4807

An UTXO is a code that contains a transaction.

No transaction

The wallet will calculate the difference through input and output

You can use more wallets control by yourself

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#4808
  1. UTXO’s are the inputs of the transaction that have not yet been spent.
  2. You can combine multiple UTXO’s to cover the amount needed for the transaction to take place, otherwise, if you do not have enough, the transaction will not go through.
  3. The bitcoin wallet looks at previous transactions to determine the most up-to-date fee that will get your transaction through.
  4. One can have multiple addresses as outputs, and only the holder of the private keys knows what went where.
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#4811

  1. UTXOs are transaction outputs sent by the previous owner to you. When put together, total UTXOs is basically the wallet balance. UTXOs then become inputs for you that you can send to another wallet address.

  2. The transaction will not push through.

  3. A bitcoin wallet would deduct the input minus output to determine the transaction fee.

  4. Use different addresses for every transaction.

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#4812
  1. Unspent Transaction Outputs are funds transferred into your wallet that have not been output yet.
  2. Your wallet would combine UTXOs, calculate the fee and return the balance.
  3. It would show the sum of all inputs minus the output.
  4. Use different addresses for every transaction.
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#4813

  1. UTXO is the “change” after a crypto exchange has occurred. It is the remaining currency in your wallet that is transacted but not towards the purchase. it returns back to you.

  2. Your transaction would not be validated, and thus rejected.

  3. The transaction fee is the difference between the input and the output.

  4. More outputs can increase anonymity.

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#4814

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are outputs from previous transaction that you can spend. Inputs must equal outputs.

  2. What would happen if you dont have any single UTXO that is large enough to cover for you transaction?
    Inputs must equal outputs in a transaction therefor if UTXO isnt large enough then you would send addtional amount left over to self.

  3. How would a bitcoin wallet specify the transactin fee when creating a transaction?
    The fee is created by the difference between inputs - outputs = fee. The wallet communicate with blockchain and will propose a fee based on previous fees in blockchain. Miners will choose highest fees first therefor the wallet will propose a fee that will make the transaction successful.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    When looking at a transaction from the outside it is impossible to tell where the input and output transactions came from because of the encrypted address.

2 Likes
#4815

UTXO’s are the transactions that are left unspent after someone completes a transaction, similar to the change someone receives after conducting a cash transaction at the store.

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#4816

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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#4817
  1. Is a transaction a wallet can receive and spent afterwards.
  2. You wouldn´t be able to transact because the blockchain wouldn´t allow it.
  3. It would propose you the best price/speed ratio found in the blockchain searching for previous similar transaction fees.
  4. Sending some to yourself again.
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#4818
  1. Input Transaction to your wallet that are not spent yet.
  2. Wallet will combine multiple UTXO to cover the cost of the recipient and the fees
  3. Depending on the current fees of the existing blocks in the Blockchain and which block can be verified fast and put to blockchain
  4. Wallet makes sure the input transactions are hashed with the private key so all network is always secure.
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#4819

1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are unspent outputs of previous transactions. The sum of all UTXO’s your private key can verify is the amount of coins you control. Your wallet will keep track of your UTXO’s, meaning the sum of UTXO is your balance.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your transaction is invalid. The nodes will reject it.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The is calculated as the total of all input minus total of all output of the transaction

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Use different addresses for each receiving transaction. For example, the Ledger devices automatically generates new addresses and keeps track of your previous ones.

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#4820

To increase privacy in your transaction you can use multiple addresses.

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#4821

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.

3 Likes
#4822

Thanks for the explanation

#4823

This means that the transaction is not broadcasted at all… makes sense. Thanks!

#4824

1. Describe what Unspent Transaction Outputs (UTXO) are. UTXOs are the recipient input, if A sends money to B, then B uses A output in order to construct a new tx.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? the wallet will calculate the sum of the UTXO’s and will use as many as needed in order to cover the amount needed (if available).

3. How would a bitcoin wallet specify the transaction fee when creating a transaction? a Bitcoin wallet will specify the transaction fee after “watching” the blockchain & determine the right amount of fee’s needs to be sent in order to get your tx going.

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

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#4825

Its uses UTXOs as inputs to a new tx, which are Unspent TX Outputs. A tx can have many inputs and outputs.

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#4826
  1. UTXOs are a balance or unspent amount from a transaction. A remainder.
  2. This would be an invalid transaction. If you had enough UTXOs your wallet could calculate that and make that transaction work.
  3. The fee is calculated into the sum of inputs and outputs.
  4. Continuously changing your wallet address after each transaction.
1 Like