Ans.:
received output in the previous transaction, which has not been spent at the moment
wallet will collect the remained UTXOs to check if it is enough to cover the current transaction
the difference between output and input of the transaction
use multiple wallets to store money, and transfer some money to own wallets along with the true deal
1.Whole or fractional outputs of a transaction
2.You won’t be able to spend anything then
3.the fee will be UTXO inouts minus the outputs ,whats left over will be the fee
4.the more inputs and outputs the more privacy because they dont know which wallets you control
1.) UTXO’s are wallet-constructed outputs that can disperse pieces of an input’s sum to several different other wallets. A wallet’s private keys asks the blockchain what UTXO’s can be spent, and the blockchain adds these up to be broadcasted to a number of other wallet keys in a transaction.
2.) If one doesn’t have any single UTXO that is large enough to cover a transaction, then the transaction cannot be carried out to verify a true statement. Thus, the transaction won’t even happen in the first place.
3.) A bitcoin wallet specifies a transaction fee by taking the input of a transaction and then calculating an output for that transaction with an added fee in which the statement has to come out true mathematically. Formula: Inputs = Outputs + Transaction Fee
4.) The notion of inputs and outputs can be used to increase transaction privacy by having many UTXO’s for a singe input. The more UTXO’s a transaction has, the more pieces are dispersed among many different addresses which can be hard to trace back to the initial input.
You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.
This is an output that is not spent to be an input in another transaction. That is the number of electronic coins that is yet to be spent.
For Example:
A send a bitcoin to B that is an input which became a UTXos to B, Because B is yet to spend the bitcoin received.
The UTXOs is designed to help the blockchain calculate the electronic coins in this case might be Bitcoin received, spent and History of transaction. That is why in the blockchain we do not have any tangible funds but only Input and Output of UTXOs.
When you do not have any UTXOs that is enough to cover your transaction that means you don’t have enough electronic coins in your wallet. As early Discuss above on Wallet. Wallet can be mobile, Desktop, Online or hardware.
Bitcoin wallet create transaction fee, this is possible on the difference between the input and output of the UTXos.
To increase the Privacy of each transaction different address can be generated when initiating a transaction, remember an address is a hashed generated with SHA256, with this it is not easy to decode who is sending and receiving, therefore to increase the privacy of input and output, difference address can be generated to accomplish a single transaction.
Example:
A is to make deal of 250.000 Naira to B, In doing this A want the transaction to have privacy. A can then chose to send each address with 50.000 Naira each to B with 5 different generated address .
In the Blockchain Explore you can see the hash address and 50.000 but you can tell who is the sender or the receiver due the SHA256 hashed address.
1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s are your available bitcoin balance. The Bitcoin you have and are able to spend. There are no actual coins stored in any wallet. Only the private key proving the ownership over these “coins”.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
You can look at this like cash, if you have a 20$ bill. And want to buy something worth 18$ you still have to hand over your 20 to the cashier first, and then you receive 2 back. Once you have 2 back, your transaction at the store is finished.
Same goes for UTXO’s.
If you say got a UTXO worth 0.125 BTC, and you want to spend 0.115, the full 0.125 will be send in a transaction. Only you will receive the remaining balance back.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The transaction fee is simply the Input minus the output.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
By making sure there are more than 2 outputs on your transactions. Outside lookers will not be able to tell what was spend and what was send back.
You can’t use a partial UTXO, you must always use the entire one and send the remainder back to yourself.
You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.
Of course you are right! I didn’t word my answer very carefully. If you have 2 UTXOs of 5 BTC each and you want to send 7 BTC, you send 10 and get back 3. Thanks!
a utxo is a record of unspent transactions on the blockchain. UTXO’s are signaled by wallets when a request to spend is initiated, the UTXO then ques the blockchain to locate the record of unspent outputs the wallet user may utilize as an input.
Nothing
The remainder of all inputs minus the outputs of a transaction
There really is no way to increase privacy on the blockchain.
You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.
You can use a different address for each receiving transaction.
Describe what Unspent Transaction Outputs (UTXO) are.
UTXO are transaction outputs generated by our wallet. They stay in this ‘unspent’ state, until they do not reach a new transaction block. Once they are in a new transaction (thus, in the sum of another wallet), they are considered like spent transaction.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
My wallet could no generate a new UTXO for performing an ouput.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
It will calculates the difference between sum of outputs minus sum of inputs.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
We could multiply the number of output for increasing transaction. I heard too about bitcoin mixer, that enables to split a one transaction.
You can use multiple UTXOs as inputs to a new tx. If you don’t have enough your transaction would be declined.
Thanks Maki, I didn’t think anyone actually read these things lol!
Right, “nothing” was a simple way of saying it would be declined, maybe too simple!