Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5888

1)The balance which we hold in wallet

2)That says your low on balance and need inputs

3)The difference between input and output

4)To generate more address

#5889

You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.

#5890
  1. UTXOs are basically the unspent currency which can be added up together to make your balance.
  2. If you dont have a UTXO large enough to cover a transaction it will be declined.
  3. Bitcoin specifies the transaction fee from the difference between inputs and outputs.
  4. The notion of transaction inputs and outputs can be used to increase privacy by using multiple inputs an outputs for transactions.
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#5891
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UTXO is a received transaction that has not been spent by creating a new send transaction.

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

The wallet will construct the spendable amount by calculating the sum of all UTXO’s. If that sum is not large enough to cover the proposed transaction + fees, the transaction will not confirm.

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

The wallet calculates a proposed fee based on past transaction that the wallet deems sufficient enough to process the transaction.

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

Create new or rotate current send and rec addresses. Send all or part of the transaction back to yourself on the new or rotated address.

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#5892

You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.

1 Like
#5893

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are the outputs of the a transaction that are stored in the blockchain, and you can use your wallet to account your balance adding your UTXOs

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    I can add more UtXOs as input to cover the balance

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    No. it is the difference between the inputs balance and the UTXOs balance

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

you can use different public addresses.

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#5894

  1. the output from your wallet that is sent out after you initiate a transaction. its part of or all the amount you have signed and acknowledged that you as a wallet holder want to spend out.

  2. It will be bundled together with other UTXOs, if you have enough that is verified and linked to your wallet. Either that or you will be unable to complete the transaction.

  3. transaction fees are the difference between what was input and then output, including transactions sending back to yourself.

  4. multiple outputs to different address can hide the actual amount that has changed from one party to the other because some address can be controlled by the sender themselves, meaning they actually didn’t make a transaction with another party.

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#5895

  1. UTXOs are the digital substance from which a transaction is formed. They are the origin of funds successfully broadcast from other wallets in the form of transactions. These digital assets remain identified as “outputs” until they are directed into a new transaction by a wallet, thereby becoming “inputs” and subsequently, “spent transaction outputs”.

  2. UTXOs of various sizes will be cobbled together to form the aggregate for the required sum of a new transaction.

  3. By looking at the blockchain, the wallet will see a track record/history of fees of previous transactions. From this view, a fee will be applied to one’s transaction relative to the going rate acceptable to miners.
    This fee is never specifically referenced by the wallet, it is merely implied.
    The fee is the difference between the input and the output.

  4. To increase privacy, one may create several UTXOs routed to several recipients, or several Bitcoin addresses directed back to one’s own wallet. This may be a way to camouflage one’s activities as well as better allocate assets.

2 Likes
#5896

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXo`s are transactions received that have not been spent yet. The wallet displays their sum as the balance.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    In this case, the wallet will search in the blockchain if you have other UTXO`s, will add them up and construct a transaction. If it doesn’t find any, the transaction will not be confirmed by the blockchain.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The wallet proposes a fee, taking in consideration past fees. Inputs must be equal to outputs plus fees.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    The blockchain already offers privacy since it displays just the addresses and not their owner. If you want to increase privacy, you can create multiple addresses and use them to send yourself the change remaining from transactions.

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#5897

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO is basically the balance you have to spend thanks to transactions made to you in the past.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    You can use multiple UTXOs, which summed up make your balance.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    most wallets propose a fee based on recents fees. input must be output + fee.

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

When an input creates multiple outputs it becomes difficult to see which output went where.

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#5898
  1. UTXO’s is the wallet balance or the difference between the inputs and (outputs+ transaction fee).

2.If you dont have a UTXO large enough to cover the transaction the transaction wouldnt go through.

  1. Bitcoin wallets never specify the fee because the fee is easily calculated.

  2. You can use transaction inputs and outputs by mixing various inputs together and making it difficult to trace the transaction history.

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#5899

You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.

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#5900

  1. UTXO stands for unspent transaction output. simply put it is the unspent btc that is in your wallet. it is the output of another transaction. this makes the balance of your wallet.

  2. if your UTXOs cannot cover the cost of the transaction you cant make the transaction…

  3. UTXO- output = fee

  4. you can have multiple outputs and inputs. meaning the btc can go to many different wallets. this brings a level of privacy due to the fact you could send yourself btc and no one would know you were sending it to yourself

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#5901
  1. UTXOs are the btc address balances.
    2.the transaction simply cant be done
  2. they will look at the other transactions and use a fee good enough to get included into the blockchain in a reasonable perios of time.Fee input UTXOs-output UTXOs
    4.Use many inputs and outputs.
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#5902

You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.

#5903
  • Describe what Unspent Transaction Outputs (UTXO) are.
  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    unspent transaction outputs are used in cryptocurrency transactions . These are the transactions that are left unspent after someone completes a transaction, similar to the change someone receives after conducting a cash transaction at the store.
    transaction would not go through
  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    as it the output minus input equal fees
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
#5904
  1. It is the total bitcoin i have which i can spent.
  2. Transactions will be declined.
  3. fee= input-output
  4. use of diff adresses for receving transaction.
#5905

You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.

#5906

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    They are amounts of crypto that came from previous inputs that your wallet uses if you need to send crypto to another address in a new transaction.

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

The transaction would not be allowed.

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

It takes the difference of the input and output, but also compares the transaction fees to decide.

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

By sending crypto to yourself with different addresses that may still use your own private key.

#5907

You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.