1:UTXO’s, linked to a private key, represent one’s ‘rights on the transaction output’ on a blockchain. In other words: the output is ‘owned’ by the private key (holder) and the key holder can access the assets represented that output (as such abstract of electronic funds).
2: then you cannot use it (for a Tx)
3: difference between input and UTXO (value)
4: by increasing the number of output destinations, including one’s own wallet, difficulty to read/explain the output increases (hence privacy increases)
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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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- Describe what Unspent Transaction Outputs (UTXO) are.
- UTXO are previous transaction inputs that have not yet been spent (output).
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
- The Blockchain would reject the transaction.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
- The Wallet would first calculate the difference between the outputs and the remaining inputs (UTXO), and query the Blockchain regarding fees from previous transactions, and then calculate a reasonable fee, subtracting the fee from the remaining UTXO.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
- You could have the remaining balance after a transaction sent to a different address (or addresses), thereby increasing anonymity. The same could be done when receiving inputs.
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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs represent the balances from previous transactions that you have in your wallet. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Several individual UTXOs can be combined to cover the transaction. You’ll then also be capable of sending any surplus BTC (‘change’) back to your wallet. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
It’s implied, Fees= Input(s)-Output(s) - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By using multiple addresses, it makes it harder to track how much crypto you are sending to others vs to yourself
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UTXOs are unspent transaction outputs, and their sum/total = your wallet balance.
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you have to use more than one utxo as inputs to add them all up to find the sum and then send that certain amount.
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fee= input - output
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create many new addresses and use them to receive transactions or even send them to a friend or even yourself.
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UTXO is what you have left from a previous transaction and can then be spent in a new transaction
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You can use multiple UTXOs to cover the cost. If you don’t have enough then the transaction will be cancelled.
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The transaction fee is the inputs minus the outputs
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Using multiple addresses in the outputs helps to increase privacy since some of the addresses could be yours
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BTC UTXO’s are Unspent Transaction Outputs, so when a whole or fractional tx is made to an address which is not spent from the address, the received bitcoin will be considered a UTXO with the input sum equating to the output sum…
Gather more inputs and it will be changed to be sent to addresses which are in your control.
Input-Output = Tx fee
Send the your wallets content to outputs of which 1 address is under your control so it seems like you sent all your funds to someone while you still have control over it.
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- UTXO are the inputs 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.
- The fee is calculated from the memory of inputs minus the outputs of a transaction.
- Use a different address for each receiving transaction.
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1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are the transactions which have not been fully completed yet meaning that the receiver of the bitcoin you’ve sent has not been sent to another party. When your transaction to the receiver has been used in another transaction, spent by the receiver, then that transaction becomes a UTXO and your previous transaction is spent.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Another UTXO will be used to fulfill the transaction that is trying to be executed.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
Depending on the speed of the transaction you desire and the amount you send. (Inputs - Outputs = TX Fees)
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Using different addresses when making transactions.
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unspent transaction outputs (UTXOs) are the inputs to your wallet received over time that have yet to be sent to another wallet, i.e. unspent
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If i want to send btc but don’t have large enough UTXOs to cover it all in one single transaction, you’ll need to add in other UTXOs in order to cover the remainder, like handing over two 5$ bills for a 9$ transaction
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the fee specified by the bitcoin wallet when creating a transaction is an estimate of recent fees (and ends up being the difference in total UTXOs input - total output)
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in order to obfuscate a transaction, you could send it successively through any number of wallets you control and/or to various wallets under another’s control, i.e. split transactions
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- Unspent Transaction Outputs are the outputs of former transactions that are yet to be spent, the sum of these outputs are calculated by your wallet and are your balance.
- Your wallet would sum all of your UTXOs and determine your balance, if your balance is enough to cover the transaction, then several UTXOs will be used to pay for the transaction, fees would be subtracted and if necessary you will receive change back.
- A bitcoin wallet specifies the transaction fee by subtracting the total output from the total input.
- This can be done by using several different outputs and addresses.
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Unspent Transaction Outputs are transactions that have not
been spent yet. Once UTXOs are transacted they are then spent
transactions. -
If you don’t have a UTXO large enough to cover a transaction
you would have to input enough UTOXs to cover the cost of the transaction.
If you have 0.5 BTC and 0.4 BTC, input both BTC to equal 0.9 BTC. 0.7 BTC is used for
transaction. And the 0.2 BTC could be sent back to your wallet. -
Wallets track the UTXOs your private keys can spend. They track your
UTXOs on the blockchain. And the wallet calculates the fees for each transaction. -
No one ever knows who put the input in or took the output out. You can never
know who made a transaction.
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Homework on Bitcoin Transactions and UTXO - Questions
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Describe what Unspent Transaction Outputs (UTXO) are.
-UTXOs are amounts recorded on the blockchain that have been confirmed as inputs, but have not been confirmed as outputs of an address. Basically the balance of a wallet. -
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 completed.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
- The transaction fee is the difference of the total UTXOs and the outgoing transaction. Fees are based off the current fees of the blockchain.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
- You could send and receive certain amounts to various wallet that you own.
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- UTXO’s are the input into a wallet.
- The transaction will not process
- The bitcoin wallet would show the transaction fee by fee = input - output
- Using many inputs and outputs no one knows exactly who the other parties are besides the private key owner.
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- Unspent transaction outputs are when there’s an available amount received into your wallet from a previous transaction, which hasn’t been used in a transaction yet and becomes an input transaction now. This unspent balance (input) can be used to create a new transaction.
- If you don’t have any single UTXO that’s large enough to cover your transaction, then you would not be able to make a transaction.
- The bitcoin wallet specifies the transaction fee by taking the total inputs and subtracting it by the total outputs.
- The wallet constructs a transaction, signs, and then broadcasts it to the blockchain. Since you have to sign with your digital signature whenever you are initiating a transaction, that will provide increased privacy for every transactions being created from your wallet.
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- Essentially your balance, a list of all of the currency you’ve received.
- Portions of smaller transactions would be removed respectively to cover the transaction.
- Input minus output.
- Use multiple addresses (wallets) if I’m concerned about privacy, since wallet activity can be traced.
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You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then the tx would not be possible. 
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Describe what Unspent Transaction Outputs (UTXO) are.
They are outputs that will be come inputs to your wallet when you create a new output. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction will be rejected by the blockchain -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
the fee is calculated from the remainder of all of the inputs minus the outputs of the transaction -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Create a different public key for a different transactions
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1 - Describe what Unspent Transaction Outputs (UTXO) are.
Bitcoin operates on a system that is supposed to avoid double spending. To do so, it must be understood that all new non-zero entries are a future unspent exit which itself could again be an entry, which in turn will again be an unspent expenditure until the chain is exhausted if no new exterior entry does not reload the original entry in this example. It’s a kind of merkel three in the operating principle in which we can put all the outputs:
Example :
Input 1 - Output 0; 5 — input 0.15
input 0.25 - 0.13 Output
- 0.12 Output
2 - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Here, the transaction cannot be done because of insufficient funds, because the entry is lower than the exit.
3 - How would a bitcoin wallet specify the transaction fee when creating a transaction?
A Bitcoin wallet specifies the fees on the preview before the transaction is confirmed before it is validated. The fees are automatically calculated beforehand resulting on the display in a blockchain explorer by the difference between the entry and the exit.
4 - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
To increase the confidentiality of the transaction, it suffices that the transcction output account differs from the input account but that the latter also belongs to you, since it is not possible to determine whether the receiving address is yours or not. However, once a KYC is performed on an exchanger, the exchanger lists all your transaction links made on that exchanger. So pay attention to your account interaction in your exchanges, because on the bitcoin blockchain and others, but even more so on the Bitcoin blockchain because of the UTXO system. It is statistically easier to trace an unknown address as the multiple interactions with this address multiply, particularly if it can be determined that it is connected to one or more exchangers.
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- UTXO - unspent transaction output are the amount of coins that you poses
- the transaction won’t be valid because miners won’t allow it
- Bitcoin wallet specifies the transaction fee by subtraction the input from the output
- to increase privacy you need to create more output addresses going to the same recipient or even back to you
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