Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#4947

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’s are the outputs of transactions. They cane be used for inputs for new transactions but then become spent.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Several UTXO’s can be combined to create a transaction large enough to cover the transaction you want to make. If you don’t have enough UTXO’s to cover the transaction will be denied.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It looks at pervious fees and make it high enough so that miners will want to accepted and put in in the blockchain by using the aforementioned UTXO’s to cover the fee and 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 transaction. One wallet can have many different addresses that feed in to it.

1 Like
#4948
  1. UTXOs are the digitally signed funds available to a wallet and combined will be the total balance of the wallet
    2.your wallet would grab as many UTXOs as it needs to exceed the transaction amount, then send the needed funds out and the remaining funds back to the users wallet minus any mining costs.
    3 bitcoin does not define the transaction fee but it is assumed by the difference between funds in and funds out of the transaction.
    4 you can use many address but with some special software bitcoin can still be tracked
1 Like
#4949

You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then your tx would be rejected. :slight_smile:

#4950

A UTXO is a output from a previous transaction. Basicly the fee left in your wallet after the transaction.

The wallet will calculate the transaction fee. The transaction would be rejected if there is not enough funds to cover it.

The fee is calculated from the Input, minus the output.

When an input creates multiple outputs it becomes difficult to see which output is what.

1 Like
#4951

  1. UTXO’s are basically “coins” on the blockchain. They are not technically coins but are what people think of when discussing the amount of buying power they have in bitcoin. If someone sends you .5 btc. That is held in your wallet as a UTXO for .5 btc. Then when you spend that btc it is a spent transaction and the person receiving the btc has a UTXO.

  2. Invalid transaction unless multiple UTXO’s are used. Any leftover will be sent back to the sender as a UTXO for that amount.

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

  4. It is very difficult to trace an address back to an individual, so using different input and output addresses increases anonymity on the blockchain.

1 Like
#4952
  1. UTXO is the unspent transaction you have received or is left from your own past transactions.
  2. It depends on the sum of the UTXO in my wallet and not on any single UTXO.
  3. Fee = transaction inputs - transaction output.
  4. create more output transactions to a couple of wallets, which then will be your new inputs. In doing so you will seem to be a couple of people but are in reality one.
2 Likes
#4953

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    A: -broadcasts to the ledger if you can make transactions.
    -unspent currency
    -contains your Private Key

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    A: Transaction won’t be approved by the mining nodes.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A: UTXO to buy something should always send all the BTC. Fee is calculated: Inputs - output.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    A: By sending all your BTC when making a transaction. Remainder of the transaction can be returned to yourself.

1 Like
#4954

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

UTXOs are the balance that left in the wallet from the transactions

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

Transaction will fail

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

It depends from the speed of the transaction (you can modify the settings slow-average-fast), some times it depends from the traffic of the transactions as well ( ex: if 12:00 UTC is a pick time for transactions you gonna pay higher fee).

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

Just create and use several addresses

1 Like
#4955

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.

#4956

I though that if u dont have enough balance for the fees the transaction will decline anyway or I am wrong? :sweat_smile:

#4957

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Transactions which I received and which can be spent

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Some wallets choose the transaction fee automatically some let us choose manually depending which transaction speed we want

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By moving btc trough many different transactions. Anyone viewing the transaction on the blockchain explorer is not able to tell which outputs we transfered to other party or how many of them I know.

#4958

It would but if you have enough balance in your UTXOs then you have enough. :slight_smile:

1 Like
#4959

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

#4960

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

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

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

  4. Several addresses and outputs can result from one input

1 Like
#4961

  1. UTXOs are payments you have received from other people.

  2. If you have multiple UTXOs, they will be combined to make the larger payment.

  3. The wallet checks the blockchain for fees that will allow your transaction to be processed in a fair amount of time.

  4. Your transactions are inherently private already. If you wanted to increase your privacy, you could split your outputs.

1 Like
#4962

Alright…Thanks for the guidance :grin:

#4963

Unspent transaction outputs is what your balance totals out to. They are used for the next transaction.

If you are short in being able to cover then transaction will get rejected.

Fee will be calculated by input - output.

Privacy can be implemented by just dealing with the amount that needs to be sent coupled with the address.

1 Like
#4964

UTXO’s are the balance you have in your wallet.
Transaction would not be completed.
It doesn’t. The fee is simply the difference between the UTXO and the amount sent.
Send amounts to multiple wallets owned by same recipient.

1 Like
#4965

Describe what Unspent Transaction Outputs (UTXO) are.

  • UTXO are the imaginary coins that we use to spend in the blockchain. They are what we receive in transactions.

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

  • unless you have a total amount of UTXOs available to spend for a specific transaction in your wallet, your transaction is deemed to be invalid and will not push through

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

  • transaction fee are computed as ‘input’ less ‘output’

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

  • when making transactions through blockchain we use public keys that are encrypted and are very secured in the sense that you can trace where the transaction is going but you may never know who are you transacting with.
1 Like
#4966
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are inputs into your bitcoin wallet which could be spent
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Wallet adds up all the UTXO and determines the output
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It can look into the historic fees and propose or take the remaining amount left in the UTXO as fees
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Several inputs can create several outputs.
1 Like