Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5747
  1. UTXO is basically the balance left in the wallet from the previous transactions/inputs.
  2. It will add all other single UTXOs to create a large enough transaction as required.
  3. The transaction fee is the difference between the transaction inputs and transaction outputs. Fee=Inputs-Outputs.
  4. By increasing the number of outputs. Several outputs could be your own addresses and that would make it hard to track.
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#5748
  1. UTXOs are the transactions left unspent after a user completes a transaction. If outputs are left unspent, they are deposited back into the ledger as inputs that can be used for later transactions.
  2. A user can take one or more UTXOs to serve as the input.
  3. The fee is implied and is the difference between the inputs and outputs.
  4. Create additional output addresses to prevent them from being associated w one another.
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#5749
  1. Are the coins you have to spend. It’s the sum of all of your inputs.
  2. The transaction will not happen, there will be no consensus.
  3. The difference between the input and the output.
  4. Using differents addresses
#5750

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.

#5751

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The amount of bitcoin available for sending from a previous transaction.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple UTXOs may be aggregated to cover for a transaction if needed.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fee is determined by the difference of the transaction’s total inputs and total outputs. In other words, anything that is not included in a specified output goes into the transaction fee.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You could split the outputs into multiple receiving addresses owned by the receiver or yourself, although this sort of obfuscation hinders only manual transaction tracing and is not actually very useful.

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#5752

1 - UTXO is like change from a previous transaction.
2 - Use several UTXOs
3 - The difference between inputs and outputs.
4 - Using many inputs and outputs to make it harder to track

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#5753

  1. UTXO is, in laymans terms, your wallet balance. It is funds sent/received, which can be added to figure out what your balance is.

  2. The transaction would be rejected, as you do not have enough transactional outputs to cover your request.

  3. On more modern wallets, you can specify your own fee based on a calculated current median fee done by your wallet by assessing the blockchain.

  4. You can only guess where the outputs went, as you can not know for sure who controls each wallet. As UTXOs frequently fracture transactions, it can become even harder to understand what said transaction’s purpose.

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#5754

  1. A UTXO is a record of a transaction made TO a given address that has not yet been used to construct a transaction FROM that address.

  2. UTXO’s can be bundled together to accumulate sufficient BTC to make the transaction.

  3. The bitcoin wallet specifies the transaction fee by leaving it out of the transaction output e.g. 10 BTC input -> 9 BTC output would be a 1 BTC transaction fee.

  4. You could use different addresses to receive your “change” from the transaction.

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#5755

  1. UTXO are the amounts of funds that are available for spending.

  2. All available UTXO will be spent for the transaction and the remaining UTXO not spent will be sent back to original address.

  3. UTXO subtracted by total amount sent would be the transaction fee.

  4. There can be any number of inputs as well as any number of outputs in a single transaction making it difficult to trace which UTXO went where.

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#5756

  1. UTXOs are any transaction that has been sent to someone that has not been spent by the person that received it. A wallet will add up multiple UTXOs to calculate the wallets balance.

  2. Your wallet will track what UTXOs your private key can spend and use multiple UTXOs to cover a transaction.

  3. The transaction fee would be the remaining difference between the inputs minus the outputs of a transaction

  4. Privacy can be increased by sending to different addresses with some being your own. This will prevent your outputs and inputs from being traced.

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#5757
  1. Unspent Transaction Outputs are the data created from a previous transaction. The total value of all UTXOs connected to a single wallet will display your “balance,” or remaining UTXOs available.
  2. The transaction will be denied from lack of funds.
  3. The transaction fee is the difference between the transaction inputs and transaction outputs. In a transaction, you can adjust fee manually by reducing the amount but that will likely result in transaction speed reduction. INPUT - OUTPUT = FEES
  4. Use a different address for each receiving transaction. Output transactions include transactions that sent back to owner and to use a private blockchain.
#5758
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Transactions can be used as input and output. When a transaction is used as an input, it gets ‘spent’. When a transaction is an output, it is created and therefore is ‘unspent’. The idea is that if someone wants to pay 0.2BTC, the wallet will look into the block chain to gather enough unspent transactions to the sum of at least 0.2BTC that belong to that private key (wallet). The wallet will create a transaction with those inputs and generates outputs to make payment of 0.2BTC and give the change back to the owner. These outputs become unspent transactions because they are ‘unused’ BTC. They have just been received; much like receiving cash, it’s received and is unspent.

Example: Alice wants to pay 0.2BTC to Bob. Alice’s wallet looks at the block chain to determine what UTXO’s Alice has and finds the following (up to a minimum of 0.2BTC): 0.1BTC, 0.08BTC, 0.05BTC. This is a total of 0.23BTC. This is the wallet’s rationale:
: Ok, I found 0.23BTC unspent in Alice’s wallet.
: I am going to spend these transactions.
: I will give 0.2BTC to Bob. This becomes an unspent transaction in Bob’s wallet.
: I will give 0.03BTC change back to Alice in the form of another unspent transaction in Alice’s wallet.
: The old unspent transactions of 0.23BTC total in Alice’s wallet become spent.

  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The wallet has mechanisms to count the total of UTXO’s available for your private key and if that is smaller than what the demand is, the wallet will typically not let you issue that transaction to the blockchain. If for whatever reason, the wallet is not secure enough to prevent that, the blockchain will reject the transaction.

  2. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It looks at other transaction fees in the block chain and determines a fee such that the transaction is processed in a reasonable time frame.

  3. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Block chain explorer will show the inputs and outputs of a transaction in the form of an address which does not show to whom it belongs.

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#5759

  1. Unspent transactions are all Outputs which comes back to the senders account/wallet.

  2. Transaction wont be done.

  3. Input - output = transaction fees

  4. use every time a different address to make an trasnaction

#5760
  1. UTXOs are the outputs of a transaction that is yet to be be confirmed
  2. I don’t know
  3. Some wallets propose a fee based on the “fee history” on the chain to ensure that a transaction is confirmed faster. Some wallets allow you to specify a fee
  4. I don’t know yet
#5761

You can use multiple UTXOs as inputs to a new tx. If you still don’t have enough then you can’t do the tx.

#5762
  1. UTXO’s are a collection of unspent inputs to a wallet/private keys that you own. The separate UTXO’s combined make up your total BTC balance.
  2. There would be no transaction, as it would be rejected by the nodes. You would need a new input which covers the difference in order to process the transaction.
  3. Input - Output = Fee
  4. Regularly generate new addresses and increase the amount of outputs, making it harder to track.
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#5763

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.

#5764
  1. Coin balance that can be spend.
  2. It will try to sum up all your other UTXO until the fund is enough, if its still not enough, the transaction will not proceed.
  3. utxo input minus output
  4. use multiple addresses.
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#5765

Describe what Unspent Transaction Outputs (UTXO) are.

Outputs from other transactions that are not spent yet. If you want to spend a certain amount of bitcoin, utxo’s you own are added together to be spent.

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

Other UTXOs that you own will be added until you have enough for the transaction

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

It will be deducted from the utxo’s used for the transaction.

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

If you create different addresses each time you do a transaction, all the bitcoin will be moved to that new address (minus the fee or payable amount). Since addresses are not linked to an identity it is hard to try to link utxo’s to an individual.

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#5766
  1. Describe what Unspent Transaction Outputs (UTXO) are.

An utxo is an unspent input (of funds) that came from a transaction between two parties. Once the funds are sent to a different wallet (transaction) the UTXO becomes a spent transaction output.

The combined amount of utxos that belong to a certain private key is the total of btc in that wallet. Blockchain holds no balance, only UTXOs

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

You would combine multiple UTXOS to cover the amount.

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

The input minus output makes up the fee.

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

Make use of multiple addresses when recieving a transaction.

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