Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5767
  1. They are the unspent inputs.
  2. Your utxo’s merge to cover your transaction.
  3. Wallet checks previous transactions and suggests a reasonable fee.
  4. Creating more output.
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#5768

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Ut of are all the coming in transactions/inputs, waiting online to be spent. They can be cryptocurrencies received from someone else or it can be the equivalent of “change” left from a previous own transaction sent.
    To use an image, it’s kind of speak like the balance on a centralized bank account.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    If the total of all the Utxos online/inputs are not enough to cover the transaction, the transaction will simply be disregarded.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The Bitcoin wallet will calculate the fees and construct the transaction. The transaction fees by deduction, are;
    Inputs used in the transactions- outputs = fees

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Creating new addresses for each transaction. The Bitcoin will automatically moved to this other address.

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#5769

1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXO is from the previous transaction that have yet spent. (Money received)

Example: Role of wallet is store your private key to regulary check to the blockchain which transaction output I can spend and blockchain will give a list UTXO
(unspend transaction output) to you that your private key can use and the role of your wallet will sum all UTXO show as your total balance account

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction won’t go through because output must be equal to input.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The bitcoin wallet will recommend reasonable fee based on the current transaction and previous transaction.It will create a transaction fee when creating a transaction by subtract the total input by total output.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
it is hard to know which output went to where (to your friends or your another address) and there are multiple output address.

#5770

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.

#5771

  1. The crypto sent to your wallet, waiting to be spent or HODL.

  2. It will not compute.

  3. It looks at the blockchain and calculates the best fee.

  4. More outputs will further entrench one’s privacy.

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#5772

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.

#5773

I understand better now. Thank you for clarity.

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#5774

Utxo is the balance left in your wallet

Transaction would be declined if balance is not big enough

The wallet figures the correct fee by checking the blockchain

Several outputs can result from 1 input

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#5775

UTXO’s are what is left over from previous bitcoin transactions.
All UTXO’s for a specified address are aggregated so not having a single UTXO for a transaction is not necessarily going to invalidate the transaction. If the total of all UTXO’s for an address does not cover the transaction cost plus fees then the transaction will be rejected. If the aggregated UTXO’s can cover the tx plus fees then the tx will go through and generate a new UTXO.
TX input - TX output = Fees
Using multiple addresses increases the anonymity of the transactions and makes it harder to track.

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#5776

  1. It is the total of what you have left to spend in your wallet.

  2. It will combine UTXOs and the UTXOs that is not spent after the transaction and fees have bin deducted will be sent back to your wallet.

  3. Input-Output=Fees

  4. Using different inputs and outputs.

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#5777

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.

#5778
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Bitcoin received is an Unspent Transaction Output.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? You would break the transaction into two parts and construct separate transactions to cover the cost of the transaction and the fee.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? Inputs= Outputs + Transaction fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? The role of inputs and outputs to increase privacy is that they have to match but there’s no way of tracking who they belong to.
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#5779

  1. An unspent transaction output (UTXO) is a transaction output that can be used as input in a new transaction. UTXOs define where each blockchain transaction starts and finishes. The UTXO model is a fundamental element of Bitcoin and many other cryptocurrencies.

  2. The transaction would be declined.

  3. If you are sending a transaction with a Bitcoin wallet, the wallet will usually display an option for you to select your fee rate. This fee rate will be calculated in satoshis per unit of data your transaction will consume on the blockchain.

  4. Use different addresses when you want to receive something.

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#5780

UTXOs are the balance of the wallet. (the unspent coins)

If you don’t have any single utxo that is large enough to cover the transaction it will be declined

the bitcoin wallet would specify the transaction fee by calculating the difference on the input and output.

use multiple different addresses and you could also use privacy wallets

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#5781
  1. Unspent transaction outputs are inputs that your wallet has received from someone previously sending you bitcoin.
    2.If you don’t have any single UTXO large enough your other UTXO’s will be added. Any remaining balance will be sent back to your wallet and cover mining fee.
  2. It is implied and not specified. If your input is subtracted by your output you will know your transaction fee.
  3. Privacy is increased because the you don’t know who’s original btc is being sent where. Everything is split up up when being sent to the next address.
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#5782

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.

#5783
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • UTXO is the bits of money, which is the result of previous transaction to that particular wallet (private key)
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • your wallet will make inquiry to the blockchain if you have other UTXOs and combine/ sum up this UTXOs for you. otherwise, the transaction will be cancelled.
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • it’s implied by substracting input and output.
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • the transaction IDs are only shown in string of numbers, which we don’t know who is the owner–> absolute anonymity
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#5784
  1. UTXOs is the unspent ouput leftover from the previous transaction.
  2. The transaction would get rejected and not go through.
  3. It doesn’t specify, it implies, it will deduct it from the difference between the output and input.
  4. You can generate new addresses, especially outputs, so that the outputs of the transaction are all different, therefore difficult to tell which one goes back to the sender.
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#5785

Is a transaction send it to an address, which yet is not being spend/use

What happens it could be 2 things, if you only have that utxo, the transaction is cancel. But if you have more than one utxo and the total of you utxo can cover the transaction, it will combine 2 utxo for make the transaction.

Fee is equal input - output

Doing with an input several outputs

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#5786

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

    A UTXO is an unspent transaction output. This is when a transaction is recieved, but the recieved transaction hasn’t been spent yet, therefore it would classify as a UTXO.

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

    If you do not have enough from one UTXO your wallet would essentially ask the blockchain, if the wallet has enough UTXOs in total to spend on the transaction. The blockchain then adds up the sum of all available UTXOs to determine if you have enough. They do not use just any one UTXO for a transaction.

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

The blockchain determines the fee based on the difference between the sum of UTXOs and the output of the transaction.

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

    You would use the sum of UTXOs to send to as many recipients as you would like, some of which can still be your own address.

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