- UTXO’S are outputs of last verified transactions any unspent will be mathematically calculated by wallet to show any unspent bitcoin in wallet.
- transaction would be declined.
- a bitcoin wallet specifies the transaction fee by calculating input-output=transaction fees.
- by using alternative outputs addresses and create one for self this would add more privacy to a transaction
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are unspent outputs of the previous transaction - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
It will not be a valid transaction - How would a bitcoin wallet specify the transaction fee when creating a transaction?
Fee=Input-Output - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By using different transactions
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You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then your tx would be declined. 
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- UTXO’s are unspent inputs to a transaction.
- If you don’t have any single UTXO that is large enough to cover your transaction, that is ok if the sum of your UTXO’s can cover the transaction.
- The bitcoin wallet will specify the fee as the difference between the UTXO’s and total output.
- The total outputs in a transaction could be from multiple sources flowing through one transaction. This helps protect the senders of the UTXO.
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1. Describe what Unspent Transaction Outputs (UTXO) are.
Unspent Transaction Outputs are outputs from a transaction that have not been spent by the receiver. In other words, the receiver has not used them as inputs for a new transaction.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet will check with the Blockchain which UTXOs belong to your private key and it uses multiple UTXOs for the transaction. The change will be send back to your address. If the value of all your UTXOs together is not enough, the transaction will be rejected.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet looks at the Blockchain to see the most recent transaction fees and calculates a fee based on that.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
When there are several outputs to a transaction, it is hard to figure out what is going back to the sender and what is going to other destinations and to whom.
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- UTXO’s are the left amount after a transaction has been done i.e the wallet balance. The blockchain is a series of outputs and inputs. UTXO’s become inputs when they are used in a transaction, then become outputs in a different wallet that the transaction has been used to send to. The balance is calculated from all UTXO’s belonging to that wallet.
- It will sum up other UTXO’s that the wallet owns and try to use them to conduct the transaction. If this is not possible, it means that the wallet is trying to send more than its total balance and is hence trying to conduct a fallacious transaction.
- Depending on the wallet, the fee can either be chosen by the user or the wallet will choose the fee depending on the amount of bitcoin the user is sending.
- Since there can be multiple outputs, a wallet owner can send an amount to a wallet and then send the rest to another wallet he owns. This provides anonymity as no one can find the owners of the wallets.
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evenin,
why did you add me in this message is it because my answer needed to be more in depth ?
question 2 I’m referring
Unspend Transactions Output
The transaction will not happen
The wallet chooses the fee which gives the what’s most reasonable and gives a fast way through the blockchain
Use different adresses
Because the tx would not be declined if there are other UTXOs available to the wallet.
You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then your tx would not happen.
1 All Inputs received (i.e. BTC) not yet spent
2 Tricky Question, the questions asks “if you don’t have a single UTXO”, it doesn’t say “if you don’t have enough summed UTXO”, therefore i would say that the answer is that i add more UTXO and if it squares is ok, if not, for instance i can send back the rest to myselfù
3 Input - Output
4 To increase the Privacy and Anonymity in MY transactions i can direct the Output to myself (changing the address), therefore at the end of the Transaction i would own the UTXO in a totally new Address
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UTXOs are all transactions you have not spent yet
The wallet would use 2 UTXOS that are greater than the sum needed but send the balance back to you
It would look at past fees in the blockchain and decide which will get you in fastest
Or Input-Output
You could send a UTXO to yourself creating a new address/ send it to yourself with a different wallet
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- Describe what Unspent Transaction Outputs (UTXO) are.
It is an output of a blockchain transaction that is ready to be an input of the next transaction. It is possible to access it only with the private key. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction is possible if the sum of all UTXOs signed to a private key is larger than the desired transaction output. The rest of the money goes back to the sender as an new UTXO and goes to miners a s a fee. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
It checks the blockchain for trending fee sums at the time considering the transaction sum and generates a fee that could be accepted by miners. - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Use different output addresses?
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Basically, always using a different address to receive funds or send back change.
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- It is the balance of all transactions outputs that have not being expended and can be used as input trasnsactions.
- The transaction would not be executed.
- The wallet figurates out different transaction fees to speed up the process but considering that the fee will be the result from the transaction input minus the trasnsaction output
- By having diffent wallet addresses I could increase privacy
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- Describe what Unspent Transaction Outputs (UTXO) are.
Total UTXO is your wallet balance - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
the transaction would be declined - How would a bitcoin wallet specify the transaction fee when creating a transaction?
the wallet calculates the correct fee using the blockchain as reference - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? use several inputs and outputs.
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are the outputs from a previously made transaction that are not yet spend
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 made
How would a bitcoin wallet specify the transaction fee when creating a transaction?
The fee is calculated from the remains minus the output
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You could use different addresses for each transaction
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Homework UTXO
- Describe what Unspent Transaction Outputs (UTXO) are.
UTXO are outputs that hasn’t become inputs in a new transaction yet. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Then my wallet needs to find two different UTXO that together are large enough to cover my transaction, and if they toghether becomes bigger than what I need, I have to send the rest back to myself. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
Input-output - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
I can have multiple transactions addresses where I can recive input
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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.
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