Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5067
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    It is the amount of balance left 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 would be rejected.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The wallet would check the Blockchain and calculates the input minus the output tx.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Use several adresses outputs and inputs.
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#5068

Homework on Bitcoin Transactions and UTXO - Questions

An unspent transaction output (U.T.X.O.) is the output of a transaction.
The UTXO’s will wait to be used as inputs in future transactions.

The transaction would fail because the output is more than the input, the output and input has to be the exact same.

The output sent to you minus the input received by you would equal the fee which would be charged to create the transaction.

You can have multiple outputs which make it hard to know if the transaction is just going to one person.

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#5069
  1. Unspent UTXO’s are what you have in your wallet to spend on transactions.
  2. You cannot complete the transaction until you have more UTXO’s.
  3. It would calculate the difference between inputs and outputs for the fee.
  4. No one can identify who is getting the UTXO’s by just reading the transactions.
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#5070

  1. UTXOs are previous transactions that you have received. It is your input for your next transaction, or the bitcoin that you have not spent yet.

  2. If you don’t have a single UTXO large enough to cover your transaction, multiple will be combined in order to cover the transaction. Then, after sending the specified amount, you will send the leftover bitcoin to yourself as a new UTXO.

  3. A bitcoin wallet specifies the transaction fee when creating a transaction by looking at previous fees and determining what the average fee would be to allow for an average speed transaction to occur. This is necessary because miners are incentivized to validate the transactions with the highest fees first since they are receiving the bitcoin. Therefore, an average sized fee would equal average wait time before it is confirmed.

  4. You could increase the privacy of your transaction by using the different inputs to create many different outputs. This would work by making new UTXOs that are sent back to you but at different addresses. This would make it difficult to tell which address got what and who the owner of each was.

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#5071
  1. Unspent Transaction Outputs are transactions sent to you that haven’t been used.
  2. If there is not enough on any single UTXO to cover the transaction, then it will use as many UTXO outputs as it needs to satisfy the transaction, then it will send the remaining amount, minus a service charge back to your account,
  3. It will automatically adjusted based off the outputs minus inputs.
  4. Keep purchase amount different, but really your identity can not be easily identified.
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#5072

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:

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#5073
  1. UTXOs are unspent transaction outputs; money you have received but not yet sent
  2. You would have to create another transaction to join multiple UTXOs together.
  3. The wallet automatically picks the best fee for your transaction.
  4. You can use multiple addresses for receiving and sending transactions.
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#5074
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are available bitcoins in a wallet that can be utilized by owner of wallter.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple UTXOs are aggregated for transaction exceeding one UTXO amount to cover.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Difference of Input and output
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By signing with private keys
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#5075

1.) UTXO is the remaining balances after a transaction
2.) The transaction would not go through
3.) It is automatically calculated based on previous transaction fees
4.) Use multiple inputs and outputs

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#5076
  1. UTXO is the current balance left in your wallet: transactions you have received and can be spend.
  2. Transaction will not be valid and send by the wallet on the first place, not accepted by the miners in a second stage.
  3. The transaction fee is the difference between the transaction inputs and transaction outputs.
  4. By sending the output to a different address or wallet.
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#5077

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

#5078
  1. Unspent Transaction Outputs are current balance or sum of received transactions that can be spent in new transaction.
  2. Transaction would be rejected if sum of UTXOs is not large enough to cover for transaction.
  3. The transaction fee is calculated from transaction inputs and outputs (fee= inputs - outputs). Reducing transaction speed fee can be reduced.
  4. By creating more output addresses privacy can be increased.
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#5079

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    These are incoming transactions to your crypto wallet that have not been spent yet.

  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 - you cannot spend more than you have. The wallet will try to combine multiple UTXOs though.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It does not explicitly, one would leave the transaction fee as the remainder when one subtracts the outgoing amount from the incoming UTXOs.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Increase the number of inputs and outputs to make it unclear who is sending what and how much to whom.

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#5080
  1. these are the transactions that you have received in your wallet they are just sitting there.
  2. Then it would use more than one UTXOs to add up to the amounted wanted to send, then if the UTXO is too large it will then return the extra change back to you minus the transaction fee.
  3. it doesn’t show it but, the difference between the amount sent and the amount received will always be the transaction fee?
  4. here is an idea called CoinJoin lets multiple users combine all inputs and outputs from several transactions into a single, big transaction. This single transaction spends bitcoins from different addresses to different addresses – and since none of the sending addresses pay none of the receiving addresses specifically; there’s no link between any of them
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#5081
  1. Unspent Transaction Output , an Input that has not been spent yet, typically a transaction you have received sat in your wallet.
  2. Your wallet will look for other UTXO’s , otherwise the transaction will fail
  3. Input - output = fee
  4. You cannot be identified
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#5082

What about when you withdraw to your address from an exchange😉

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#5083

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    these are unspent inputs

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    multiple UTXOs should be used and the amount which is above the payment to somebody else is send to my new address as a new UTXO

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Some wallets lets me choose the fee amount but if very small fee is chosen transaction might never get to the blockchain or it can take very long time. Some wallets will calculate the best fee according to what the traffic and current fees are on the network to get my transaction into the blockchain in reasonable time. Fee is calculated as remainder of all inputs minus all outputs.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    use different address for each new receive transaction

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#5084

  1. UTO stands for unspent transaction output.
    It’s the unspent balance from previous transactions

  2. Aggregate multiple UTXOs to have an amount large enough to cover for the transaction

  3. Bitcoin wallet recommend transaction fee based on previous and past transactions fees, And also in a bid to select fee that is not too high.

  4. . By using multiple and different addresses for each transactions

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#5085

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    -Unspent Transaction Outputs (UTXO’s) are how individual transactions are registered within the blockchain ledger.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    -You would combine multiple UTXO’s to cover the transaction and send the excess amount back to a wallet you control, similar to how you make change from paper fiat bills.

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

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By creating multiple output addresses and making many different transactions.

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#5086

1- These are the amount received on your wallet from previous outputs, the balance remaining.

2- The transaction will be denied.

3- Input - output = fee

4- Using multiple output addresses, where more then one can be yours.

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