Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5968
  1. UTXO’s are the the transactions that you have received that hasn’t been spend from you at the moment.
  2. Transaction will be invalid.
  3. Bitcoin wallet will check every blockchain for the the transaction fee.
  4. A variety/different addresses can be used.
1 Like
#5969
  1. utxo’s ( unspent transaction outputs) are the data from a previous transactions that then can be used to create a new transaction.
  2. you need to construct a transaction from multiple utxo’s or the blockchain will refuse you.
  3. the fee is a claculated remainder from all inputs minus the outputs.
  4. the security functions lies in the keys not the blockchain itself even though through using the key pair in conjunction brings open anonymity.
1 Like
#5970

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

#5971
  • Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO become input later after receiving. The sum of all UTXOs is the balance in a wallet.
  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Transaction will be not happening.
  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Transaction fee is input minus output, it is calculated by the bitcoin wallet, by looking at old transaction to choose the fee that gets you into blockchain faster.
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    It is send to several addresses, so it is difficult to say which one was sent back to the sender.
#5972

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

#5973
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are the previous transactions you received but still not spent yet.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The wallet will sum up all my small transactions to cover up the required transaction and the fees
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It depends on the transactions and it is not specified

4.How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Because it is hard to track the output

1 Like
#5974
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Input, in the form of received funds you hold, that are yet to be sent to another holder. It is calculated by taking the sum of the remaining funds you hold after all transactions made previously.

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

You would use all your remaining UTXO to sum the sufficient amount and ‘send back’ the remainder to yourself minus the fee.

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

Transaction fee is calculated by taking the difference between your input and output (amount you have vs. amount you spent)

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

By encrypting the transaction using public key, the input and output is untraceable to the sender/receiver though there is an estimation on the amount transferred

1 Like
#5975

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    It the amount you have available to spend that is comprised of all your inputs and is completed when you have made outputs. Each output will become a new UTXO for someone else (or yourself if a sum is sent back to yourself)

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    A combination of smaller UTXOs would be used (plus a fee that goes to the miners for writing the UTXO into the blockchain).

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Input-output=fee

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Noone knows who owns the public address so you could use multiple addresses in the same wallet to receive inputs

1 Like
#5977
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Unspent Transaction Outputs are the left balance that can be spent for future transactions
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    We need to sum up all remaining smaller UTXOs to cover the transaction minus fee.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is calculated from all inputs minus all outputs
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Using the concept of cryptography (bitcoin Account) and UTXO allow to guarantee the transaction privacy
1 Like
#5978

Hi everyone,

  1. UTXO is the amount you receive from previous transactions and that you can spend. There is no balance recorded for you on the blockchain, instead the wallet will query the blockchain and work out the UTXO for you.
  2. The transaction can’t be verified as valid and will not be accepted into the blockchain.
  3. The transaction is the difference between input and output. The wallet can work out the fee by looking at previous fees to ensure your transaction can be processed fast enough.
  4. Imagine a transaction with 1 BTC as input, and as outputs 0.1BTC to an address (A) and 0.9 BTC to another address (B). (We ignore fee for simplicity). It is possible that B is one of your adresses and really you are just sending 0.1 BTC to someone else. But nobody will know, nobody know one of the adresses in the outputs is actually yours. More generally you can have various adresses so nobody can really tell how much you received from others and how much you sent to others.
1 Like
#5979

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

1 Like
#5980

  1. UTXOs are the balance left that your wallet keeps track of.

  2. If you don’t have a single UTXO that covers the transaction then the transaction is declined or rejected.

  3. It specifies the transaction fee by subtracting the input by the output.

  4. People are unable to track who the addresses belong to so you could send 15 bitcoin and 3 of them could be sent to a wallet you own and the other 12 could be sent to someone else. This way it is more private for you.

1 Like
#5981

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

#5982
  1. Describe what Unspent Transaction Outputs (UTXO) are.

They are previous transactions, which you can spent to create new transaction. They are the transactions you received, but did not spent yet. The sum of the UTXO’s is the amount you can spend.

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

The transaction will be declined.The blockchain will refuse the transaction because you don’t have enough UTXO’s.

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

The wallet will determain the fee as a calculation form the inputs minus the outputs.

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

if it is send to more than one adress, it is difficult to determine which one was sent to back to the sender.

1 Like
#5983

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

#5984

  1. Describe what Unspent Transaction Outputs (UTXO) are
    The total balance in your wallet that you can spend, UTXO is a currency unit recognise by the entire blockchain network.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Not having a single UTXO, simply means you have an empty wallet and you won’t be be able to perform any transaction. You need UTXO to be able to construct a transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    When creating a transaction input needs to be addition of output + Transaction Fee, i.e
    Input = Output + Transaction Fee

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can’t, UTXO is recorded on the blockchain system.

2 Likes
#5985

You can use a different address for each receiving transaction.

2 Likes
#5986

  1. The inputs that are available to spend.

  2. The transaction will be rejected when the UTXO sum is insufficient.

  3. The remainder from input minus output is the fee.

  4. Create more addresses.

1 Like
#5987

  1. An unspent transaction output is “Bitcoins someone send to an adress” [someone deposited money information]

  2. if i have enough compined UTXOs it would send out if not there will be no transaction

  3. Your wallet suggests the transaction fee from the recent transaction fees, some wallets allow you to set the amount to make the transaction faster but it costs more

  4. I would send my bitcoins to other wallets because no one knows who is behind the wallet. And quantum computers can just hack (if ever) wallets who created a UTXOs because out of this wallets the private key is calculated. Wallet with UTXOs cant be hacked as long thex dont create an input aka UTXO to a new wallet or their own.

1 Like
#5988
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    In general it is the incoming transactions which wasn’t used in spending yet.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The wallet will collect enough amount with multiple UTXOs
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It will subtract input amount from output amount
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    One of the possible solutions is to collect money on several public addresses.
1 Like