Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4907
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • an UTXO can be spent and the total is your balance.
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • transaction won’t go through
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • the difference between transaction input and output
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • you can have an output transaction send to yourself on a new public address.
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#4908

ok thanks for informing me!!! =)

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#4909
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UXTOs are a data base of transactions which tracks which of the transactions are unspent.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If one does not have any single UTXO that is large enough to cover for your transaction, the wallet will take your private key and ask the blockchain which UTXOs can this private key spend. The blockchain will then give back a list of UTXOs, the wallet will then add everything up and tell you to balance the sum together, and show you your balance.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
A bitcoin wallet would specify the input transaction that needs to be spent but it should be equal to the outputs plus the transaction fee. This then goes to miners who mine new blocks and the miners choose the transaction with the highest fees as these fees are paid to the miners.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
One can input their own input and output keys to increase the privacy in a transaction.

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#4910

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Inputs that are not yet spent are referred to as Unspent Transaction Outputs (UTXO)

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    the wallet estimates the fee by comparing previous fees for similar transactions.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? You could send funds to multiple wallets you control as well as the intended recipient.

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#4911
  1. Describe what Unspent Transaction Outputs (UTXO) are.

to find out how much money someone has, the wallet looks at UTXOs and determines if you have money or not

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

then you wouldn’t have enough btc to pay for the transaction.

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

transaction fee is whats left after you subtract the smallest value of the transaction from the highest.

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

by using many inputs and outputs

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#4912

You can use multiple UTXOs as inputs to a new tx. If that isn’t enough to cover your transaction then your transaction would be refused.

#4913

You can just use multiple addresses in the same wallet.

#4914
  1. They are transactions that are given to you, that you can use to spend on a transaction. basically a balance of all of the payments made to you
  2. Your wallet would contact a node which will contact others confirming you don’t have that amount of money.
  3. By subtracting the input by the total output which it does by itself
  4. By having new UTXO’s everytime you spend and giving you a new address for each transaction
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#4915
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    This is an amount of digital currency that was once received on a particular account / private key and has not been spent yet. In other terms we can say a balance of that account.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The transaction wont be verified and accepted. Wallet would request info from blockchain which utxos are avaiable to cover for the transaction that you want to make and if there isnt enough this wont happen.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Wallet analysis the current situation in the blockchain and proposes a fee that will be more relevant and would ensure prompt finalisation. As we know miners choose big fee transactions firts as fees then land in their wallets so you need to bribe them… which i dont think is fair… because the rich will win again but ok :wink: lets hope there is an explananion further in the course
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can send the remaning change to different keys which are your own also and possibly make more even number payments so it will be difficult to determine which is the acctual transaction and which ones come back to you.
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#4916

UTXO are the balance left in your wallet that it keeps track of.

The transaction would be declined by the nodes if your UTXO is not large enough to cover it.

The wallet checks the blockchain and figures out the correct fee.

Several addresses and outputs can result from one input. We can use a different address for each receiving transaction

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#4917
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UTXO’s are unspent balance from all the previous transactions.

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

There are 2 possible scenarios your wallet will add up all the other small UTXO and and try to execute transaction. if the other small UTXO’s still doesn’t add up to the output then the transaction can be declined.

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

transaction fee is the difference between the output and input.

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

By generating many outputs from just an input. only the sender with the private key can decrypt it.

any feed back is appreciated :slight_smile:

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#4918

  1. A unspent transaction output is a previous transaction that was sent to the user are available funds.

  2. If a single UTXO is not large enough to cover a transaction then the wallet will add in other UTXO’s to make up the difference. If the combined UTXO’s are greater than the transaction then the remaining amount will be in the transaction but then returned to the original wallet.

  3. The transaction fee is specified in the wallet by the difference of input and output that is sent.

  4. When a transaction occurs the input of the address sent and the output of the returned unused funds can be different making it difficult to determine the identity of the user.

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#4919

  1. UTXO’s keep track of funds on the network and are used as inputs for creating new transactions.

  2. If you do not have a single UTXO to cover a transaction, then your wallet will combine multiple UTXOs into a single transaction if there are additional UTXOs there. Otherwise the transaction will be invalid.

  3. A Bitcoin wallet would assign a fee based on current activity on the network in order to send through your transaction in a reasonable amount of time.

  4. If the transaction inputs are masked in some way, then it might help to keep your wallet from being discovered and protect your privacy.

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#4920
  1. UTXOs are a transaction where you have gotten an input, but not used that input for an output yet. When you for example recieve 0,5BTC from your mum that is an UTXO, and when you for example send 0,2BTC to person A and 0,3BTC to person B then your transaction is spent and no longer a UTXO. The 0,2BTC that now belongs to person A will be their UTXO. A wallet adds up all your UTXOs and that is how you get your balance.
  2. Then your transaction simply wont go through (The nodes will not validate it) because input will not equal output, and in a transaction input always have to equal output.
  3. The fee is Transaction input - transaction output=fees. The fee goes to the miners and will want fees as high as possible so the fee amount will be to get the transaction through the blockchain in a reasonable amount of time. The higher the fee the faster the transaction will og through
  4. You can increase privacy by having multiple inputs and outputs, and even sending founds to different addresses that you control.
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#4921
  1. UTXO’s are outputs that have not been used/spent.
  2. Then you would have to use 2 or more UTXO’s to cover the transaction and if the 2 or more UTXO’s used are greater than the amount needed for the transaction then the “change” will be returned to your wallet.
  3. The fee is basically the difference between the inputs and the outputs. Input minus transaction amount(s) = the transaction fee.
  4. Use new output addresses as well as multiple output addresses.
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#4922

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are the output amount of a transaction that remains unspent. for an example it is when
    the transaction amounts coming into your wallet that have not yet been spent by being used as inputs in the transactions.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The transactions are not confirmed by the miner miner nodes as an input if the amount is larger then what’s in the input.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    the fifference between the output and the input are the transaction fee. It calculates the fee being the difference between the input and the output of a transaction

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    It’s impossible know who is the owners of the wallet, it permits that you could sent TX to many wallets of your own and no one could figure it out unless you tell them or use an wallet on a crypto exchange

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#4923

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    A UTXO is a transaction adding to 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 not be valid in the wallet and will not be taken in into the network.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Fee = Input - Output

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

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#4924

You can use multiple UTXOs as inputs to a new tx. If that isn’t enough to cover your transaction then your transaction would be refused.

#4925

1.unspent utxo is the balance you have in ur wallet ready to be spent.
2. no transaction will take place because the input is invalid or false.
3.The wallet will take a look at the blockchain, it will check previous transaction fees and it will give you a fee that will get you in the blockchain fast enough.
4. Not really sure

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#4926

The premise is that bitcoin is a transaction based blockchain and not balance based.

  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • That is the money that a specific wallet has received but not spent yet. The Sum of UTXOs is the balance of the wallet
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • Multiple UTXOs would be used
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • Based on checking the fee of the recent transactions. The fee should be such that your transaction is picked up by the miner in a reasonable amount of time. And fee = input-output
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Not sure
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