Homework on Bitcoin Transactions and UTXO - Questions

[Wyse_Sousa]

1 - UTXO is the unspent money in that your wallet can track in your Keys
2 - if you don’t have enough UTXO to cover a transaction the transaction will be canceled
3 - after confirmed that you have enough UTXO for the transaction the fee will be calculated based in the amount of the transaction
4 - as much inputs and outputs you have hardest is to track.

[infinitegrowth]

1. Describe what Unspent Transaction Outputs (UTXO) are.

The amount of unspent output data from your wallet being recorded and stored in the nodes network, that can also help keep track the total of your output transactions and have it available for you spend or use.

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

It will not process and get rejected as there is not enough suffiecient data for the transaction to happen.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?

It is the total of inputs - output total, then the difference is the fees.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

when having multiple input and output data, it increases the privacy and hard to tell who, where and which data is from or owned by.

[Maki]

@Wyse_Sousa

if you don’t have enough UTXO to cover a transaction the transaction will be canceled

@infinitegrowth

It will not process and get rejected as there is not enough suffiecient data for the transaction to happen.

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.

[BenF]

1.unspent transaction outputs are the balance available to spend in your wallet verified by your private key.
2.the transaction will not be verified and completed will be voided.
3.uxto input - unto output
4.increase the number of outputs can increase security as they are encrypted and you will not know which address where

[Maki]

@BenF

the transaction will not be verified and completed will be voided.

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.

[Gene03]

1 . UTXO is the sum balance in your wallet that is available to be spent.
2 . You just can’t spend more of the value of the inputs that you control, meaning, outputs are limited to spend less or equal of the value of inputs.
3 . A bitcoin wallet would specify the transaction fee when creating a transaction by subtracting the total input UTXOs by the total output UTXOs.
4 . Once a transaction is completed on the blockchain it only appears as an output from one address to either one or more addresses. The blockchain does not record who owns the addresses. Therefore the transaction is anonymous and therefore has a high degree of privacy

[MoMoni007]

1. Describe what Unspent Transaction Outputs (UTXO) are: is currency that someone else sent you but you have not spent. The blockchain keeps track of the UTXO’s for your wallet to read and calculate.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Your wallet will quarry the blockchain to see which transaction outputs can cover the expense. You will be charged a fee for sending you back the change.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction? It would be the input minus the output.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? by not receiving outputs back.

[cryptofluous]

1. UTXOs = the balance that you received from someone which you haven’t spent yet.

2. Imagine you received 100BTC from me. Now you wanna buy something that costs 100BTC. You can simply pay the same amount and buy. There’s no difference in the cost and balance. Its a simple transaction.

Also, Imagine you received 200BTC again from me in a single transaction but this time you wanna buy something that costs only 150BTC. Now you don’t have the exact change of 150BTC. This is where UTXOs are important. You can’t break the total balance of 200BTC you got, the same manner you can’t tear a 200 rupee note. In this case, You need to create 2 transactions. First for 150BTC to the seller, second for 50BTC as change for yourself.

3. In the above example, the wallet automatically applies a fee based on your UTXOs. 50BTC is your UTXO here, which you sent to yourself as a change. Say, the wallet applied a fee of 0.5BTC on your UTXO. You will receive 49.5BTC which is your new UTXO that you can spend in a new transaction.

4. The whole transaction is however private. If you wanna make it more private to confuse a human, create many wallets, create many inputs and create many outputs from those many wallets of yours. You can address these inputs to yourself if you just wanna play around and lose a bit of your bitcoin as transaction fee.

[H_P]

1.UTXOs are unspent transaction outputs from previous transaction inputs.
the wallet does the job of adding all UTXOs and showing you your available bitcoin balance.

2. Incase there is no single UTXO that covers a transaction amount, then 2 or more UTXOs are added to cover that transaction and the remainder of the spent amount gets sent back to the previous UTXO address.

3.the Transaction fee is the difference between the input transaction and the output transaction. The fee could also be manually chosen, usually this would be more than the default fee amount in order to get transactions verified sooner.

4.from my understanding, you can identify a trail of unspent transaction outputs but cannot identify the person or enitity from those transactions alone because the input addresses would keep changing.
*could anyone please add to that or correct me if i have missed something ) .

[Mike_Russo]

1. A UTXO is a list of previous transactions that your wallet calculates the sum.

2. The transaction would be rejected.

3. The wallet would base the fee on previous transaction fees on the network.

4. Because the output is the total sum of the input of the wallet being sent in a transaction, it is impossible to determine the amount being sent back to the address generated by the wallet.

[Maki]

@Mike_Russo

The transaction would be rejected.

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.

[Shadowstep2003]

1. UTXO’s are the output from previous transactions. They are used at the input to form new transactions

2. All UTXO’s are combined to form the new transaction. The amount needed to satisfy the transaction is sent off to the appropriate address and the remainder is sent back to yourself.

3. The wallet can look at past transactions to get an idea of what the transaction fee should be to get you onto the blockchain faster.

4. You can route through multiple addresses before sending to intended final destination to cover your tracks per say.

[Jules]

1. UTXOs are the unspent input to a wallet.
2. All UTXO will be combines in order to cover the transaction and fee.
3. By first looking at the blockchain and getting information on current fees.
4. It is difficult to determine where and how much is actually being sent in the transaction because this information is shown in the output but not specified.

[AlfredHodiah]

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   Answer:
   UTXOs are unspent outputs of the transaction input.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   Answer:
   Transactions will not be process.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   Answer:
   It’s does that by subtracting the difference from the transaction input and output.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Answer:
   Use a different address for each transaction to be received.

[Maki]

@AlfredHodiah

Transactions will not be process.

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.

[Mathewvizc7]

1. The transactions get recorded in the balance wallet, then the specified amount is considered unspent until it’s traded or used for new order(s) or output(s).

2. It won’t be processed or it would have to be combined with other(s) UTXO’(s) in order to reach the amount of the requested transaction that could have different outputs -the one that the seller is expecting to fill and another recipient(s) that receive the remaining amount of UTXO’s-.

3. Fees = Total inputs - Total outputs. For BTC transactions, it’s 0,1% of input. Most of the wallets calculate the fees automatically.

4. Because it offers anonymity by allowing the senders and recipients to work with UTXO transactions, which means that you can split and/or combine your inputs to send the UTXO’s to a single or several addresses that can also be held by the same or a different sender. The wallet will broadcast the balance in BTC, then you’ll be able to convert the UTXO’s on new outputs for the desired recipient(s).

[Schofieldj256]

Just realised I’ve been answering all my questions in my book at home.

1. UTXO or (unspent transaction outputs) are transaction outputs from a previous wallet holders input.
2. The transaction will be declined or you will simply not be able to do the transaction until you have the amount.
3. The transaction fee for the wallet is produced by the by what the previous inputs and outputs fees were to make for a faster transaction, which is all done for you by the wallet.
4. It increases privacy because you cannot see who or where the transaction is getting sent from or to.

[Maki]

@Schofieldj256

The transaction will be declined or you will simply not be able to do the transaction until you have the amount.

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.

[Pippo83]

1. UTXO are outputs from a previous transactions which are available to be spend (send).

2. The transaction would be declined.

3. The difference from input and output.

4. Use different addresses each time.

[rapheldior]

1. UTXO is a fund or tranaction that was send from one wallet or adress to another.
   a TX always is on the one side an Output and on the other an intput. In that case UTXOs are just outputs from one adress, for the other adress it is an Input, or a UnspendTXOutput. the adress can now take the UTXO and also spend it.

2. that is impossible, as Input and Output is always equal, like a function. In other words, the UTXO is your balance, and you can only spend your balance. You always take all the UTXOs and form a new TX with exactly the same amounts. Always the whole UTXOs have to be spent.

3. The Transaction fee is always the difference between the UTXO and the new Output. How high the fee is, can either be specified by the owner or the wallet directly, the fee depends on how fast the tx should be transfered by the miner.

4. by reading the adresses it is not clear who got which amount, as also one of the outputs can go back to the same wallet.