Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5227
  1. They are the unspent transaction amounts or outputs available in the wallet.
  2. The transaction would be rejected
  3. The input amount subtracted from the output amount equals the fee.
  4. Use a your own node
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#5228

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.

#5229

How would using your own node increase privacy in your transaction🤔

#5230
  1. UTXO’s are unspent inputs.
  2. you cannot complete the tx.
  3. The transaction fee is not specified. the fee is calculated by subtracting your total outputs from the total inputs.
  4. As your inputs and outputs increase, your privacy also increases.
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#5231

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.

#5232

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Total balance left in your wallet after transactions

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your
    transaction?
    Transaction would either be declined or combine multiple UTXO to cover the transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Total balance minus output

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By doing a lot of transactions, lets say a hacker has a real hard time figuring out what your wallet addresses are and how to steal your private keys.

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#5233

  1. UTXO unspent outputs from previous transanction.

  2. Transaction will be not valid.

  3. The wallet calculate the difference between input and output in the blockchain.

  4. Increase privacy by controlling multiple wallets.

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#5234

Questions:
. UTXOs are the remaining amount of Bitcoin in a wallet once a transaction has occurred.
. Multiple UTXOs may be spent and if the amount of all of these combined exceeds the transaction, then the remaining fee would be returned to your account.
. The fee is equal to the transaction input minus the output.
. New addresses may be generated for each transaction.

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#5235

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are unspent transaction outputs and only these can be used as inputs when constructing a new transaction. Instead of account balance, UTXOs represent chain of ownership.

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Subtracting input from output.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can create more output addresses, your own or others. From outside it is not possible to know who the addresses belong to.

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#5236

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Each transaction to a wallet becomes a transaction output owned by that wallet. Those transaction outputs can then be used to create new transactions. UTXOs are transactions into a wallet that have not been turned used to created new transactions.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple UTXOs can be combined to create bigger transactions.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fee is the difference between all the inputs and outputs. They can’t be an output because the miner that will receive the fee is unknown when the transaction is created. The actual amount is usually automatically figured out based on what the average fee that miners are accepting.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can split transactions sending outputs to multiple wallets, some that you may own, unknown to others, makes it harder to understand the purpose of the transaction.

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#5237

UTXOs are the bitcoins which you have received and not yet spent from your wallet.

It will sum up all possible other small UTXOs to make a large transaction as required and change will be credited to your account after deduction of transaction fees.

Bitcoin transaction fees is implied.

By sending multiple transactions One could also contain a wallet address that the sender also becomes the receiver, this would increase the privacy in the original transaction. No one knows except the private key owner.

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#5238

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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#5239

  1. Inputs in your wallet that you can use for payments.

  2. Your wallet combines UTXOs to cover the transaction+ fees and sends any change back to your wallet.

  3. The total input minus the total output is the fee.

  4. Output addresses are unknown to the public so transactions can be sent back to yourself at a different address but same wallet without anyone knowing.

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#5240
  1. It is the balance left in your wallet from unspent that it keeps track of.
  2. If you have other singles that total > then it would combine them and complete.
    3.The transaction fees are implied rather than specified. The amount sent to the other accounts will add up to slightly less than the sum of all the UTXO’s input. That difference is the transaction fee.
  3. By making many different outputs of which some or all go back to you, someone else or a mix of both.
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#5241

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The UTXO is the balance/sum of a specified wallet from it’s unspent transactions acrued over time.

  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 by the network.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A wallet determines/specifies the fee based on (total output - total input).

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By increasing the amount of outputs, you can broadcast a single input to multiple outputs/ wallets. Each unrelated to one and other.

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#5242
  1. UTXO - an amount left after transaction.
  2. Just no transaction.
  3. Depends on the wallet , will be implied or will be possible to specify.
  4. Using more than one wallet.
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#5243

  • Homework - UTXOs

    • Describe what Unspent Transaction Outputs (UTXO) are.
      A UTXO is the amount of digital currency remaining after a cryptocurrency transaction is executed.
    • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
      Transaction will be denied.
    • How would a bitcoin wallet specify the transaction fee when creating a transaction?
      TX fee = Input - Output
    • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
      Output can be send to different addresses , and nobody knows which address is someone else, and which one is mine, if it is.
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#5244
  1. They are the transactions you’ve received and constitute the value fo your wallet
  2. All UTXO’s can be added together to create the total value of the transaction you are trying to send. If you added them together and still didn’t have enough, the transaction would be deemed invalid.
  3. It specifies it based on the previous transaction fees, and what is left in your wallet post transaction in order to get the transaction done.
  4. Since you have to spend the value of all your UTXO’s with each transaction, you could in theory continually create new addresses. In using a different account every time, it could never be traced back to you, even someone had found out your original address.
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#5245

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.

#5246
  1. Unqpent Transactios outputs are essentially what you have to spend in your wallet. The sum of all your unspent transactions are how much you have in holding.
  2. No transaction
  3. the difference between the inputs and outputs
  4. Using different inputs and outputs. meaning different addresses
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