Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5247

  1. The totals UTXO is the balance left in your wallet that it keeps track of.

  2. The transaction would be declined if your UTXO is not large enough to cover it.

  3. The wallet checks the blockchain and figures out the correct fee. UTXO minus UTXO input = fee

  4. Several addresses and outputs can result from one input.

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#5248

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

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#5249
  1. It describes a transaction that has been directed to a specific private key which has not been used for an outgoing transaction yet.
  2. Several UTXOs which have in sum enough to cover my transaction will be used. If the sum of these UTXOs is lager than my transaction plus the fees, a new UTXO with with difference will go to my address (“change”).
  3. The output will be slightly smaller than the input. The difference is the fee.
  4. By sending transactions to different addresses, where one only belongs to the real receiver and the others belong to my own wallet it becomes unclear what amount has been transferred where. Because we don’t know to whom an address belongs to.
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#5250

  1. UXTO’s are transactions or inputs that have been sent to your wallet.

  2. Your wallet will then add up all UXTO’s together. If your balance is large enough to cover the transaction then it will be confirmed. If the balance is not enough, then it will be rejected.

  3. The transaction fee is generated by calculating the difference between input and output.
    Transaction Fee = Input - Output.
    Wallets may specify the transaction amount. As miners get paid by fees, they will prioritise transactions with the highest fees.

  4. Multiple addresses may be used each time to send or receive funds.

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#5251
  1. It’s an amount that can be spent by the private key in a wallet. They are basically available funds.
  2. Your wallet will automatically select multiple smaller UTXOs to make the purchase and left over UTXOs will be sent back as change.
  3. It calculates the best UTXOs to use in relation to the output and the user can either accept or decline.
  4. Perhaps multiple smaller transactions to different addresses would be harder to track.
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#5252

  1. UTXOs represent the spending power you have at any given point in time. Kind of like change, when you pay for a 10 dollar meal with a 20, the remaining ten dollars of change is what UTXOs represent in a blockchain transaction.

  2. The wallet would provide another UTXO that would satisfy the demand of the transaction, or void the transaction if no such additional UTXOs exist. The excess quantity of UTXO’s would then be sent back to a private address you control, after fees etc.

  3. The transaction fee is the input value minus the output value and is implied within every transaction. So the wallet could easily calculate those values and determine how much the fee cost.

  4. Host multiple private key addresses and utilize them during transactions.

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#5253
  1. UTXO’s are transactions that a wallet has received but has not spent yet. The sum of all UTXO’s gives you the balance of your wallet.
  2. The wallet would use multiple UTXO’s as inputs, returning any extra funds after transaction and fees to the senders own wallet address as new UTXO.
  3. Transaction fees are specified by the difference between the inputs and the outputs
  4. To increase privacy in transactions, fracturing the outputs of a block to have multiple addresses can hide the real recipient amongst the outputs and return the rest to your own wallets
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#5254
  1. An unspent transaction output is a Bitcoin transaction which has been received in your wallet. The total of these Tx make up the balance in your wallet.
  2. If you do not have a single UTXO that is large enough for your transactions then you would need to use more than one UTXO or your transactions could not be sent.
  3. A Bitcoin wallet will automatically specify the fee.
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#5255
  1. UTXO’s are the amount of bitcoin that has been returned to you during a transaction and is available for another transaction.
  2. The transaction would be declined unless the transaction can find more UTXO’s to compile into the sum.
  3. The transaction fee is the difference between the transaction inputs and transaction outputs. You can manually choose a fee that is less but requires more time or choose speed for higher fee.
  4. The transaction is made but you do not have personal data tied to your wallet. The public can see the transaction but who made it, who knows? If you increase can increase the number of outputs and make it more difficult to track.
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#5256
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The balance in my wallet I didn’t spent yet.The money I received.
    1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
      I will use more than one UTXO ,and the change I will send it back to myself at a different adress I control it
    1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
      It will calculate the fee by itself based on the last transactions on chain. Anyway the fee is Input-Output.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can use more Inputs splitting them using addresses you own
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#5257

  1. UTXO are simply when you receive money from someone and you haven’t used it yet. For example, mum sends 5 BTC to you (i.e. an output from her but an input to you), then you receive and if you would like you can send it to a number of people and yourself as well. If you don’t, then the BTCs you have received become a UTXO. If you do send BTCs, then you no longer have UTXOs but rather a spend transaction output.

  2. You would need to request some more inputs from someone you know that is large enough to cover your transaction e.g. if you currently have a UTXO of 1 BTC and you want to send 6 BTC to a friend, you would need 5 BTC from people or a person you know so that you can make that transaction.

  3. This could be done by getting a copy of the blockchain whereby the wallet will be able to acquire a list of transactions that have taken place on the blockchain, calculate the fees charged per transaction by finding the difference between inputs and outputs, and then formulating an appropriate fee based on this data it has cumulated over time.

  4. Use different address every time you would like to receive e.g. BTCs from someone.

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#5258

UTXO’s are essentially unspent Bitcoins existing on your private key or wallet.
The transaction would not be registered as valid.
Fee = input - output.
Through the generation of new output addresses. Addresses are not linked to an identity so its impossible to know who sent has sent what.

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#5259

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.

#5260

1, a transaction that hasn’t been spent yet,that you have received
2,dealing transaction
3, fees is the left over or deference from the transaction input and out put
4 use multiple addresses

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#5261
  1. UTXO’s are basically transactions outputs received into a wallet which are currently unspent.
  2. The transaction would be unconfirmed and declined by all nodes
  3. Some wallets allow you to choose the fee, others usually take Input-Output value and give you a fee amount.
  4. Once making any input transaction its difficult to identify due to encryption what is actually spent and what is actually received back to your public addresses.
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#5262

what do you mean by dealing transaction🤔

#5263

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.

#5264
  1. An unspent transaction output is a Bitcoin transaction which has been received in your wallet. The total of these Tx make up the balance in your wallet.
  2. If you do not have a single UTXO that is large enough for your transactions then you would need to use more than one UTXO or your transactions could not be sent.
  3. A Bitcoin wallet will automatically specify the fee.
  4. You can use the notion of transaction input and output to increase privacy because inputs can have multiple receivers.
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#5265

  1. A UTXO is any individual transaction available in one’s wallet.

  2. It’s a trick question. It doesn’t really matter whether a single UTXO is not large enough to cover a transaction because the rule is that all the available UTXO in the wallet has to be added up and sent to the output. It only becomes a problem if the sum of all the UTXO’s is not enough to cover the transaction. If this is the case then the transaction will not go thru. (This was not clearly explained in Ivan’s lesson though. I think it’s best if this is clarified in the lesson.)

  3. I’m not sure how the bitcoin wallet specifies the transaction fees. But what I do understand is that miners are incentivized to pick up the transaction with the largest fee amount. Maybe the wallet has a built-in algorithm which calculates the optimal fee amount for the transaction to be picked up by miners at the minimum amount of time? I hope this gets covered in the subsequent lessons. It would be good to know.

  4. To increase privacy in one’s transaction I would probably increase the number of outputs by subdividing the UTXO’s going back to my wallet into numerous private keys.

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#5266

Please Disregard must of posted buy accident please see earlier response ^^