Ah, I see… Is this a function of the wallet programming? If the necessary amount of UTXO’s don’t exist in the wallet, the programming of the wallet automatically rejects the transaction?
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UTXOs define the outputs of a transaction that have not yet been spent and therefore can be used as inputs in a new transaction.
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The wallet will combine multiple smaller UTXOs to cover for the larger amount of the transaction; if there aren’t enough funds to cover for the amount then the transaction is rejected.
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The transaction fee is one of the outputs and is the difference between the inputs and all the other outputs. In general, wallets query the blockchain to determine a fee small enough to get the transaction confirmed in a reasonable amount of time.
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By using multiple inputs and outpus it becomes harder to trace back the origin of the funds on any given transaction.
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- The balance of money that we can spent
- The transaction will fail.
- By subtracting the inputs from the output.
- By creating multiples inputs and outputs.
1 UTXO s are inputs (funds) that others have sent to an address that you control. They can also be change from previous transactions.
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Your wallet will check the blockchain to see if there are other utxos available to make up the balance.
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It will be shown as input=output + fee. The fee can be specified by user in some wallets.
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Privacy can be enhanced by using many inputs and outputs. But it is still not completely private.
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- UTXO’s are the spendable BTC in your Wallet.
2.Use several UTXO or stack more stacks
3.Input minus Output
- One Input can result in many Outputs making the transaction more private. However a tracking software might defeat this meassure.
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Describe what Unspent Transaction Outputs (UTXO) are.
An unspent transaction output ( UTXO ) refers to a transaction output that can be used as input in a new transaction . In essence, UTXOs define where each blockchain transaction starts and finishes. The UTXO model is a fundamental element of Bitcoin and many other cryptocurrencies
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
No UTXO, NO TRANSACTION…as simple as this.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
It is already implemented…the more fees you pay, the faster the transaction will be verified and add to the blockchain… and consider this: INPUTS - OUTPUT UTXO = fees
Sometimes it is hard to know in advance what will be the fees when proceeding a transaction…
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You could possibly use different addresses and one or more of those could belong to the user himself who initiates the input.
- UTXOs (Unspent Transaction Outputs) are the inputs assigned to your wallet that are available for you to spend. One person’s output becomes another person’s input; one person’s spending is another person’s income.
- If you don’t have any single UTXO large enough to cover a transaction, your wallet will construct a transaction with enough UTXOs to cover it and send the “change” back to you.
- A bitcoin wallet would specify the transaction fee when creating a transaction by reading the blockchain and seeing what fees have been accepted recently and then suggesting one that will be accepted relatively quickly.
- You could increase privacy in your transactions by using different wallets controlled by you.
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1- UTXos are records of the unspent transaction outputs you have in your wallet(s) - they reside on the ledger
2 - the transaction will be rejected by the consesus of the nodes and fail
3 - it looks for the best fee available for you and your transaction
4 - the amount of encryption and the fact that the wallets hold no actual coins is v secure
1.Describe what Unspent Transaction Outputs (UTXO) are.
It is a balance of how much bitcoin you can spend
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What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
It will not be mined it will not pass true. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
It will look on the blockchain for options to set it on -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
More Addresses
- Unspent output from previous transactions which is for the receiver an input and which then can be used as an output for new transactions.
- You can use all of the UTXOs you have to start the new transaction and you will send the remaining back to you. If you don’t have enough to cover the transaction, the transaction can’t be done as it will be invalid.
- It can be proposed from a list, but most of the times it will be implied. The fee is the difference between the input and the output.
- By using different addresses for the outputs.
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UTXOs are the records that describe inputs to, and outputs from a wallet. They are the tool that the wallet uses to construct transactions and they are stored on the blockchain. The wallet queries the blockchain to see which UTXOs are assigned to it and keeps a total of these UTXOs, which is the total spendable amount in your wallet.
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UTXOs are selected by the wallet and combined as inputs into a transaction such that the total of the UTXOs is equal or greater than the transaction required
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The wallet establishes the transaction fee as the difference between the the combined UTXOs used for the transaction and the desired transaction amount. The UTXO inputs into a transaction must equal the UTXO outputs plus the fee.
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1. Describe what Unspent Transaction Outputs (UTXO) are.
Unspent Transaction Outputs are the inputs you received from a output sent to you
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your transaction would be denied
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
Input – Output = Fee
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You could use one of your public keys as the output address to send a portion of the transaction back to you[quote=“ivan, post:1, topic:8436, full:true”]
Homework on Bitcoin Transactions and UTXO - Questions
1. Describe what Unspent Transaction Outputs (UTXO) are.
Think of it as your account balance which your wallet will organise. Essentially UTXOs are unspent outputs/BTC of the previous transaction for future Inputs. They are not physical coin instead it is called your Unspent Transaction Output (your spending power).
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet will check the blockchain for your UTXO to construct/send a transaction(s) and If you don’t have large enough single UTXO to cover multiple large transactions, the transaction would be denied, invalid and rejected.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
• Input equal Output plus TX fee
• Essentially it is calculated Fee = Inputs minus Outputs of a transaction.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
As you have to spend all your single UTXO on multiple transactions by using your Private Key generated signature, it is then an extra layer of security to resend back yourself the change of a multiple large transactions by using a different and new address for each receiving transaction as your new UTXO (balance).
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Describe what Unspent Transaction Outputs (UTXO) are.
A. UTXO’s are the total number of unspent transactions in your wallet. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
A. The transaction would not be valid unless you had additional UTXO’s in your wallet. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
A. The wallet check on the blockchain for the appropriate fees. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
A. Use a different address to return outputs back to you for privacy.
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Your wallet has all private keys of all your public keys (and converted to addresses) Your Wallet reads the blockchain to check if there are utxo’s on those addresses you can control. Your wallet will sum them all up and show you the balance. To broadcast a transaction, it must be valid according to the consensus rules, so if you don’t have enough to cover the transaction, your transaction will fail. Wallets are programmed in a way that you only can broadcast a valid transaction. Some wallets with coincontrol, you can pick yourself wich utxo’s you want to use in a transaction. Simple wallets will pick automatically 1 or more utxo’s until it has enough to cover the amount.
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Many students misunderstood the question. If you don’t have a ‘single’ utxo to cover the amount, you can use more utxo’s together as inputs. Only if the sum of all your utxo’s doesn’t cover the amount, the transaction will not be valid and fail to broadcast it to the network.
Describe what Unspent Transaction Outputs (UTXO) are.
A:An utxo is as transaction outpout that has not been spent and is used as an input for the next transaction.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
A: In this case several UTXOs will be taken to cover the transaction and the change (amount to be paid minus fees and the rest of UTXO) will be send back to a bitcoin address of the wallet that generated the UTXOs.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
A: In general it will take the average fee amount. Average fee amount is the difference between inputs and outputs. So if a total input of a transaction = 1.85020549 BTC and the total output = 1.84930549 BTC, the fee = 0.00090000 BTC
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
A: By using several inputs and several outputs. This will make it harder to track the addresses
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1.Unspent Transaction Outputs is a storage of transactions and balances of unspent transactions when inputs are deleted and outputs are created as new UTXO’s that may be used in future transactions
2.you would use multiple UTXO’s oon a new transaction
3. The transaction fee is determined by the difference between incoming and outgoing trasactioins
4.Use a number of outputs that go to addresses that you control
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- UTXO is the wallets total balance. or all your available spendable transactions.
- it will combine any available UTXO in your wallet. If there are not enough UTXO to for fill the order then it will be denied
- The bitcoin wallet will make a recommendation based on current byte prices. The fee then depends on the data size of the transaction multiplied by the byte price.
4.by generating multiple wallets and shuffling coins/tokens around to various different wallets.
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- UTXOs are the balance from different addresses available to spend, send or receive.
- If I don´t have a single UTXO I would not be able to do a transaction. I need an input to have an outcome.
- Transaction fee is Input minus Output. There are wallets that give you fee options. Depending on the speed of the transaction the fee will vary. Higher speed of TX, higher the fee.
- You could disperse your balance between different addresses or outputs in your same wallet. You could have 5 BTC divided in 5 different addresses instead of having the same 5 btc in only 1 address.