- UTXOs are transaction outputs that have not been used by the recipient. Once the recipient uses the crypto from those UTXOs, it is no longer a UTXO but now a spent transaction output, aka a new input for succeeding recipient.
- The wallet will pull the necessary amount from any other UTXOs until the amount is fulfilled for the transaction and the remainder is sent back to the sender as a separate transaction, keeping the numeric balance between total input and total output the same. If there is no other UTXO present then the transaction will be invalid.
- The bitcoin wallet will specify the transaction fee as the difference between the total input and the total output when creating a transaction.
- Transaction inputs and outputs will only specify bitcoin addresses on the blockchain thereby preserving the anonymity of the individuals involved in the transaction. There is no way to tell without any parties’ private keys to determine which bitcoin address belongs to any specific individual.
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Q1. Describe what Unspent Transaction Outputs (UTXO) are.
A. Each transaction is formulated by inputs and outputs. Unused outputs from previous transactions act as account balances that can be ‘spent’, becoming an input for a new transaction.
Q2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
A. The transaction will not be confirmed by the blockchain, although multiple UTXOs can be used for the same transaction to create the proper total input.
Q3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
A. Wallets recommend fees so that the transaction is confirmed quickly enough on the blockchain, but the specific fee is implicitly calculated by the output minus the input.
Q4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
A. Bitcoin addresses are anonymous, guaranteeing privacy for both sender and receiver. Using multiple addresses increases privacy further.
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- UTXO’s are the sum of inputs to a wallet that need to be spent. If someone could explain to me why they need to be spent, it would be much appreciated.
- In this case the UTXO’s would be combined and the remainder following the transaction would be sent back to your wallet and a portion to a transaction fee.
- It would be specified as the inputs minus the outputs. Fee rates are calculated by recent transactions.
- When sending a transaction, the output could be sent as a sum to the recipient and the remainder UTXO back to yourself. The transaction now has multiple wallet addresses as outputs which adds privacy.
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You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.
1 they are the unspent transactions from the previous input into your wallet
2 the transaction would not go through
3 the fee is equal to the input minus the output
4 dont just have one wallet but have numerous wallets when you want to send or recieve something
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A UTXO is an amount that is allowed for your private key to spend in any given transaction as a result of a prior transaction that outputted into this wallet.
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Then you would not be able to preform that transaction.
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It would calculate it easily when conducting the transaction.
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Because transactions are displayed using public keys, it is very hard to know who owns what address increasing privacy,
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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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1 What’s left over from the previous transaction.
2 It’s invalid and not accepted.
3 The fee is the input minus the output.
4 Use a different address.
You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.
UTXOs are data points from the blockchain that tell you what transactions your private key was a part of. As a result, your wallet that holds the private key goes through that data to determine how much you can spend from that private key.
If that is your only UTXO, your wallet will say you have insufficient funds. But, if you have multiple UTXOs that are not large enough, your wallet will put them together to cover the transaction and send back to you the remainder. For example, if you have two $5 bills and want to purchase an item that is $7, you would give the cashier both $5 bills and receive $3 back.
It depends. Some wallets give you the choice of how much you can spend as a fee, as others give you a fixed amount based on previous transaction fees on the blockchain. As a result, your wallet finds the best transaction fee for you to use to get your transaction on the blockchain reasonably fast. If your wallet gives you a choice of how much you want to spend on the fee, the more your spend, the faster your transaction will get on the blockchain.
You can create multiple addresses for people to send you funds to each one and transfer within your addresses accordingly.
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Describe what Unspent Transaction Outputs (UTXO) are.
Every transaction in the blockchain is formed through a UTXO, UTXO’s are inputs that are not spent when a transaction happens and money is transferred they become outputs the outputs then become newer UTXO’s. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction would be declined
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How would a bitcoin wallet specify the transaction fee when creating a transaction?
Bitcoin Wallets usually work through analyzing data from the pool of transactions to determine the appropriate fees to pay. Some wallets allow you to set up you own transaction fee however it is a more risky practice if the miner is not incentivized to mine your transaction, it could take more time to mine or even cause the transaction to decline. The implied formula is fees= inputs - outputs. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By having multiple different addresses when you send your bitcoins you are creating a flow of transactions which makes it more difficult to track on the blockchain
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1 - An output of a block transaction that has not been spent.
2 - The transaction would be declined if there was not enough UTXO
3 - Your Bitcoin wallet will suggest a reasonable fee to get your transaction on the blockchain, based on current and past transactions. This fee will be the difference between your input and output.
4 - Privacy can be increased through the amount of transactions going in and out mixed in with transactions to yourself, then it would be harder to know whose inputs and outputs are whose.
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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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- Describe what Unspent Transaction Outputs (UTXO) are.
UTXO is a transactional output based on an input + fee. It is the balance left in your wallet you can spend.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Then you cannot make a transaction.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
It will look at most recent fees and make a suggestion to get included in a block relatively quickly.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By sending the leftover output to another wallet you control that’s different than the input one.
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You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.
A wallet can have multiple addresses.
- UTXO’s are what makes up output transactions
2.you combine them and you will send the spare back to yourself. - it will be calculated on its own
4.woudnt know if the transaction is to your own wallet or not.
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1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are what a private key can spend. It ensures we don’t spend more than we have. Every time we make a transaction, all our UTXOs have to be used (So sum input = total UTXOs). If we want to send only a part of them, then we’ll have 3 outputs (or more):
- Transfer to the address we want to send funds to
- Transfer to the address who takes care of the transfer( we transfer how much we’re willing to pay as gas fees to create the transaction)
- Transfer to one of our address (or same address as the input one) to the remaining amount**
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
It doesn’t matter the amount of a single UTXO as anyway the input = sum of all UTXOs. If the sum of all UTXOs is larger what we want to send (including gas fees), it’s all good.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
It has to choose how much its willing to spend to make it go through. The higher that amount, the higher the chances that it gets mined quickly.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Not sure I understood the question. The public addresses (from a DEX) allow us to be more private than providing & displaying KYC elements and therefore linking KYC and public key.
Anyone can see the balance and all transactions of any address. Since users usually have to reveal their identity in order to receive services or goods, Bitcoin addresses cannot remain fully anonymous. As the block chain is permanent, it’s important to note that something not traceable currently may become trivial to trace in the future. For these reasons, you should use a new Bitcoin address each time you receive a new payment.
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Makes sense now, thanks for the explanation.
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1 - The Unspent Transactions Outputs ( UTXO ) is the bitcoins that your not spent yet
2 - The transaction can’t be possible, you need more UTXO to transfer
3 - I think is the difference of spent and the utxo returnerd for the sender ( if i am wrong please let me know ) , but in short word is the difference of the inputs and outputs
i have a question, if the utxo is used and some bitcoin is returned for me again
¿ is counted like a input ?
4 - is not possible to see if the transaction is for my again or for other specific user
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