Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#5989

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • UTXO are the input or the bitcoin received from outside and has not been spent or used up. In short, the balance inside the wallet is calculated from the UTXO.
  1. What would happen if you don’t have any single UTXO that is large enough to cover your transaction?
  • We would not be able to proceed with our intended transaction without having enough UTXO.

  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A transaction fee is calculated by the difference between the output and input of the transaction fees.

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

  • The input and output transactions increase the notion of privacy by virtue of anonymity of the transaction’s identity inside the blockchain network.
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#5990

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

#5991
  1. Unspent TX Outputs are spendable outputs for an address. They are individual and don’t mix together…
  2. When one UTXO isn’t large enough to cover a transaction another is added to it until the total is equal to or greater than the amount required to spend with any balance remaining becoming an input into the sending wallet again as a new UTXO.
  3. A BTC wallet specifies a transaction fee based on the average fee rate at the time of the transaction.
  4. Multiple transactions over a period into different wallets would prevent the amounts from being correlated and linked together.
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#5992

  1. UTXOs are unspent transaction outputs, basically unspent funds in your account available for you to use that someone sent to you.

  2. If you don’t have any single large UTXO enough to cover a transaction the wallet will add up all available UTXOs available in your account in order to cover the total amount + any fees.

  3. Transaction fees are specified by taking the total amount of input and subtracting the total output to get the total fee amount ( input-output = fee).

  4. Transactions are sent with public keys (randomized alphanumeric gibberish) making it anonymous to protect one’s identity. Once the recipient receives the public key, only then can it be read with their own private key.

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#5993

UTXO are transactions , UTXO becomes inputs and after transactions. If you count your utxos you get your wallet balance.

If UTXOs are not large enough then it wont verify the transaction.

Transaction fees are calculated inputs minus output and you will have transaction fees.

You can use always new wallets for every new transacion.

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#5994

  1. UTXOs are output from the previous transaction to your wallet that have not been spent or transferred to another wallet.

  2. Your wallet will combine two or more available UTXOs as inputs to cover the transaction.

  3. Transaction fee is the difference between the inputs and outputs of a transaction.

  4. By using different multiple addresses as output to receive transaction

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#5995
  1. Describe what Unspent Transaction Outputs (UTXO) are.

It is the wallet balance (the change you receive after buying an item).

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

The transaction will fail.

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

The transaction fee is the difference between the input amount and output amount.

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

make a transition output to several addresses you also own.

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#5996

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Individual crypto deposits in your address that have yet to be spent. The sum of these deposits constitute your crypto balance.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    A sum of UTXO’s would have to be submitted, large enough to include the miner fee, and any remaining balance would have to be paid to your own address.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The wallet calculates the fee based on the amount of the transaction and tacks it on accordingly.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You could grossly increase the transaction amount in order to hide the price of your purchased item, sending yourself the overage change.

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#5997
  1. A UTXO is a transaction that is received as input but was not used as part of any outgoing transactions.
  2. If we don’t have a single UTXO that covers the transaction amount, the wallet would sum up all the available UTXO amounts to see if the total is large enough to cover the transaction. If so, the transaction would go through returning any balance amount to the user. If the sum doesn’t cover the total transaction amount, the transaction would be rejected.
  3. The transaction fee would be calculated by the difference between sum of all outgoing UTXO and input UTXOs.
  4. The outgoing address can be owned by the same user but would not be known to anyone else.
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#5998
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    [Ans] It is basically the unspent output of a transaction. This helps the wallet to derive the balance for a particular user(specific Private-Key) by summation of all UTXOs for a that private key
  2. What would happen if you don’t have any single UTXO that is large enough to cover your transaction?
    [Ans] The wallet can create all UTXOs as input to transaction, pay to cover for your transaction in output, pay the transaction fee, and the rest is paid back to self as another output. If the summation of all UTXOs for a particular user is less than that is needed to pay, the transaction is declined.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    [Ans] TxFee = (Input-Output)
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    [Ans] User can have Multiple address that can be used to pay to same user in the output . These address doesn’t contain name but a number. It becomes difficult to trace for normal user.
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#5999

Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs are the available (leftover) transaction outputs found by tracking the sum of transaction inputs and subtracting the transaction outputs before starting a new transaction.

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

Transaction will be rejected.

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

It’s the first transaction found. Previous transaction fees are used to suggest a transaction fee. You can manually set the fee lower but the transaction will take a longer time. Manually setting it higher will speed up transaction time.

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

The sender address in a transaction can be held by the same participant as the receiver address and vice versa making it look like it is split between multiple addresses.

#6000

You can use multiple UTXOs as inputs to a new tx, if you don’t have enough then the tx would be rejected.

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#6001
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are BTC that you have received and not spent yet - i.e. your available balance
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple UTXO can be added together to cover a larger sum and then the “change” would be directed back to your wallet or other address specified minus any transaction fees
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The input minus the output = transaction fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Be in possession of multiple addresses/wallets to send and receive from
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#6002

  1. A UTXO is an unspent amount of BTC that your wallet has received.

  2. Provided your total UTXOs value is greater than your proposed spend, all your UTXOs then become an input into the transaction with the specified amount going to your intended recipient and the rest will be sent to another wallet address in your control.

  3. Generally speaking, the fee will first be shown as a sats per byte which will then be calculated by how much space (bytes) your transaction will take from a block. The fee is usually suggested for you.

  4. Most wallets generate a new address once the previous one has received funds once, you just need to (usually) click the receive button which will give the new address for you to receive. When you then want to spend, all the UTXOs will become an input in the same TX and send to the intended recipient what your specified amount is and the rest will be sent to a new wallet in which you control.

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#6003
  1. It’s the amount of digital currency that remains after a cryptocurrency transaction.
  2. The wallet will add up all available UTXO to make sure it can cover the amount and fees.
  3. It goes off the total amount the user wants to buy or send.
  4. When receiving something use different addresses.
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#6004

  1. Are all the transactions that have a wallet as an output and for which the corresponding amount has not been sent by that wallet as part of an outgoing transaction. Their aggregated value by wallet is how much that wallet has available to spend

  2. Multiple UTXO can be combined as transaction input in order to cover an output that is greater than a single UTXO

  3. It’s not specified but it’s implicitly the difference bwtween input and output value

  4. By the fact one of the output can be the input owner but under another address (either own or not by the same wallet)

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#6005
  1. UTXOs are the balance amount that the specific Private Key can use for further transaction
  2. If the product cost is 1.3 BTC and the user has 0.75 BTC, 0.25BTC, 0.60BTC UTXOs, now it will use the complete balance to pay for the transaction and sent back the remaining BTC to sender. Means 1 Txn of 1.3BTC to the product owner and 0.3 BTC to the sender.
  3. Usually the Input value is the summation of Output and the transaction fees, so the delta between the input and output is the transaction fee
  4. Generate new addresses even though the output goes back to the sender

Query:
Is it mandatory to spend all the UTXOs associated with the private key needs to be part of the TXN? if not
How the system pick those UTXOs which are sufficient enough to make payment for the product? means 0.75 BTC and 0.60 BTC UTXOs are sufficient for 1.30 BTC value product in the above scenario? if so what’s the logic for picking that UTXOs?

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#6006
  1. UTXOs represent the balance of unused tokens in one’s wallet.
  2. The transaction would be cancelled unless other UTXOs are available in the wallet to cover the sum total.
  3. The transaction fee for BTC is determined by subtracting the input from the UTXO. But not otherwise specified.
  4. One can use multiple address to manage transactions
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#6007

Describe what Unspent Transaction Outputs (UTXO) are.

Crypto sent to your wallet that is spendable.

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

The wallet will match up multiple UTXO’s and send you back the change like using two $10 bills to buy a $15 product, the cashier will give you back $5 minus the tax or in this case the transaction fee.

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

The blockchain automatically figures out how much you would need to pay for the transaction to go through in a reasonable about of time.

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

By using multiple wallets for the same asset.

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#6008

Homework on Bitcoin Transactions and UTXO - Questions:

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are the output of a transaction which are not yet used in another transaction as input

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Multiple UTXO will be combined as input to have enough funds to cover the full output transaction

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A wallet will suggest a fee based on recent transactions executed on the blockchain

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Input and outputs are not nominative, those are addresses which can belong to anyone, and multiple addresses can belong to the same person

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