Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5007

[quote=“ivan, post:1, topic:8436”]

  • Describe what Unspent Transaction Outputs (UTXO) are.

any pending outputs which are not spend. It tells you the balance of BTC you have to spend

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

That transaction will be rejected. Because the input does not equals the output

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

The transaction fee is input minus output + transaction fee

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

each transaction input/ output will have a random number which makes it hard to figure out if that number belongs to a certain transaction input/output. And this increases privacy

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#5008

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

Unspent Transaction Outputs are old outputs received from previous transactions which you can use as inputs to spend in new transactions. As an example, if you bought a $7 chair using a $10 bill, you would usually receive $3 back as change. Those unspent $3 are similar to the Unspent Transaction Outputs of a cryptocurrency transaction.

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

When you make a transaction, your wallet checks the blockchain and adds up all of the UTXOs that have been sent to your private key. If you don’t have any single UTXO that is large enough for your transaction, your wallet combines UTXOs until the total inputs are enough to cover your send request.

The combined inputs go through the transaction, and the outputs plus the miner fees are equal to the original inputs. The outputs are now the new UTXOs of the addresses that received it. The recipients can now take those UTXOs and use them as inputs for another transaction.

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

a) You can choose the transaction fee yourself - larger fees mean faster transactions, but are more expensive.

b) Usually the wallet will choose the fee that will get your transaction into the blockchain fast enough. The miners can choose which transactions to include in the block based on the transaction fees attached to them, so when I say that the wallet chooses the fee, I mean that it looks at the amount most likely to be accepted by miners based on the fees of the previous transactions that have already been mined.

P.S. Transaction fee = (input - output)

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

You can generate new public keys for the same wallet, and send it to yourself. An outsider would look at the transaction and wouldn’t be able to tell if you sent it to someone else, or to yourself using a different receiving address.

Basically, if you use new receiving addresses each time, it would be very difficult to find out that it was you receiving those UTXOs all along.

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#5009

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:

#5010

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are transactions that your wallet can receive as input because they are still unspent

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The wallet will sum all the UTXOs to make the sum large enough.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Transaction fee = output - input

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#5011
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Is all the unspent transactions that have been sent to your private key.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    It will add many of your UTXO to make it big enough to cover your transaction.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It calculates it automatically : inputs = outputs + Tx fees
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By sending UTXO to your other private addresses
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#5012

1 Utxos are the bitcoins you have received but not yet spent.
2 your wallet will total the amount of all utxos available and do the TX or reject if the
required amount was unavailable,
3 Fees are determined by the difference of the input to the output.
4 Unless you have the private keys it is impossible to to decipher the input and outputs, making it impossible to read the one or many addresses.

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#5013

what happened to number 4🤔.

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#5014
  1. UTXO’s are the balance left in your wallet.
  2. The transaction would be declined if your UTXO is not large enough.
  3. The wallet checks the blockchain and figures out the correct fee.
  4. Several addresses and outputs can result from one input.
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#5015
  1. What is UTXO (unspend transaction output)?

It is an unspend transaction. It is an amount that someone have receive and is available to be spend or send. Exemple : A send to B 1 BTC ; B now have 1 BTC available, as unspend transaction output from A.

  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    No transaction would happen. Or if the sum of all the UTXO is large enough it will be use altogether.

  2. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Transaction Input – transaction output = transaction fee

  3. I havent really understood this question… But apparently from the others… using another address that the one we use to send to receive.

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#5016

1.- UTXO is the output of a transaction and the input of the recipient of the same transaction but that status change the moment the UTXO is used in a transaction.

2.- The transaction can’t happened, so we have to take the number of UTXOs necessary to cover the amount and fees.

3.- The Fees will be the difference between the total imput and the total output in every transaction.

4.- Each transaction gives a new addess, making it difficult to see from and where the coins are being exchanged.

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#5017
  1. UTXOs are each transaction that was input into your wallet from someone else or yourself.
  2. You would need to use the added sum of UTXOs in your wallet Then send the amount needed for the large transaction to that specified address and send the balance left, minus fees, to an public key for your wallet.
  3. The Wallet would specify the transaction fee based on the the last fee paid on the blockchain
  4. Create different BTC addresses for your wallet and send selected amounts to someone else while breaking up a few different amounts, that add up to the total of your UTXOs minus tx fee, to send back to yourself using the other addresses you have created
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#5018

  1. When a transaction is sent from your wallet, a UTXO is created. A wallet will receive the UTXO and that is the amount of BTC you will be able to spend.

  2. The transaction will be incomplete and rejected from the blockchain

  3. The wallet specifies the TX fee by using the input - output. Additionally, the wallet will search the blockchain and try to give you what it thinks the best fee is.

  4. The input address and receiving address will be different. If you send a transaction and some of the BTC is unspent and sent back to you then the wallet address will be different from the one you sent from.

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#5019

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are transactions that you have received in your wallet and have not spent.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    If you don’t have enough to cover a single UTXO the wallet would check all other new UTXOS associated with the private key to see if it is possible to combine them in order to cover the transaction. If that is not possible the transaction will be declined.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is based on previous transaction fees. However you can set your own fee but this may take longer to verify to the block chain as miners work on fees.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You could increase privacy by using an off-line/cold storage device and also by sending the transaction to multiple sources (which can also be yourself)

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#5020
  1. Unspent transaction outputs are input still unuse, its the current balance of your wallet
  2. The transaction won’t be confirmed by nodes
  3. The transaction fee will be included in the output value, fees are calculated with blockchain congestion
  4. Use different current public address when sending btc to yourself
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#5021
  1. Describe what Unspent Transaction Outputs (UTXO) are:
    UTXO is simply outputs, which have yet to be unlocked by an input.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The transaction would be invalid. The input needs to equal the output plus transaction fee.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is the difference between the transaction inputs and transaction outputs. You can choose to enter the fee manually to expedite the transaction speed or reduce the amount of the fee, but it can reduce the transaction fee.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    The transaction inputs and outputs increase privacy in ones transaction because from the outside looking in, it is impossible to know what UTXOs are being sent to recipients(s). The inputs and outputs are just alphanumeric addresses that increases anonymity in the blockchain by sending funds to multiple addresses without your personal information being compromised.
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#5022
  • UTXO is like change from a previous transaction.
  • Use more than one UTXO.
  • The difference between inputs and outputs.
  • Several addresses and outputs can result from one input.
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#5023

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The Unspent transaction Outputs (UTXO) is the balance that is in your wallet.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The transaction will fail if UTXO does not add up the required amount.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The inputs equal the outputs plus the transaction fee. The wallet fee are the difference between inputs and outputs.

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

All transactions from the wallet have different address codes attached to them-thus giving amenity and privacy to the sender. No human name or identification is shown when transactions are sent and received, so you will never know who has made the transaction.

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#5024

  1. Transaction completed and waiting for you to spend.

  2. You need to combine your UTXOs to get enought to buy what you want.

  3. subtracting the input from the output

4.Multiple adresses can come from one input.

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#5025

1.UTXOs is the bitcoin you received from different people that you have not spent yet.when you transact your bitcoin to someone ,the bitcoin he or she received will become a new UTXOs.

  1. It will sum two new UTXOs, one is to the receiver another is back to yourself.

3
. output+tx fees = input

  1. use different address.
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#5026
  1. To keep a track of balance left in your wallet.
  2. UYXO must have enough balance to cover or transaction will be rejected.
  3. The fee will be checked and cleared by blockchain calculations.
  4. Use new or different addresses for outputs.
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