Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#41

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are transactions received (outputs of previous transactions) and in total they indicate the total wallet balance.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    It would sum up UTXO’s in order to cover the transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Based on the previous fees on the blockchain the wallet proposes and fee, fast enough for the transaction. The faster the transaction the bigger the fee. In numbers it is the Input minus the Output.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By having more output addresses that increases the difficulty of tracking someone. It’s also very difficult to know if the output went back to the wallet. It brings enhanced security.

#42

  1. UTXO’s are records of transactions sent to your public key which your wallet keeps track of.

  2. If you don’t have enough UTXO’s to cover a transaction, the transaction cannot be made or will get denied.

  3. A wallet specifies a transaction fee by checking the blockchain and subtracting the outputs from the inputs.

  4. Transaction inputs and outputs can increase privacy in transactions because it is difficult to see where the value is moving unless you created the transaction. You could create new addresses to disperse value to without anyone knowing exactly where the value is going.

#43
  1. UTXO’s are inputs of which the sum makes your balance shown by your wallet. They are old outputs form previous transaction. Simply put ‘money’ received.
  2. Then the nodes would not accept your transaction on the blockchain
  3. It calculates the fee so that your transaction will get picked up fast enough by the miners on the blockchain
  4. Since all outputs are encrypted with your private key no one knows which output goes back to you or to someone else.
1 Like
#44
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • an UTXO can be spent and the total is your balance.
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • transaction won’t go through
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • the difference between transaction input and output
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • you can have an output transaction send to yourself on a new public address.
#45
  1. money that has been sent to your bitcoin wallet address, that you have not spent yet
  2. as long as you have enough UTXO in total to cover the transaction, then the transaction is valid
  3. inputs = outputs+fee
  4. use different addresses when you receive money
#46
  1. each transaction has inputs and outputs. as long an output of an transaction is unspent, this output is a UTXO.
  2. several UTXOs are grouped together. the change will transfered back to my private key
  3. fee = input - output
  4. to increase privacy you can user several inputs and outputs
#47

1
Anything I have not spent yet. Anything still in my wallet (if we assumed a wallet actually had coins in it which it doesn’t)

2
Transaction will only be confirmed once enough input is available for the respective output. only then it will be able to confirm.

3
it either choses according to the network or will suggest according to the transaction speed. The fee is also visible own a separate transaction that is going out.

4
Im not sure I understand the question.
How about not to reuse addresses from which coins have been sent.

#48

Outputs from other transactions that are not spent yet.

The transaction will not confirm.

The transaction fee. UTXO minus UTXO input = fee.

Use different addresses

#49
  1. UTXO(Unspent transactions Outputs) are the balance available in your wallet generate from an input. Basically Outputs not spent.
    2.The transaction would be incomplete since there’s not enough UTXO available .
    3.The transaction fee is created based on the calculus of Input - Output and trough analysis of the blockchain to assure that the transaction got the better fees to get in the network.
    4.Multiples addresses belonging to the same owner(private key) and the possibility of send value trough transaction to the own addresses .
#50

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    -UTXOs are inputs linked to wallets private keys. If you calculate UTXOs together you get your wallet balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    -You need to use other UTXO input linked to your private key. If the sum of UTXOs is not large enough the network wont verify your transaction.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    -Bitcoin wallet recommends a reasonable fee bases on current and previous tx fees. Fee= Input-Output.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    -You can have several addresses and always using new address when receiving transaction.
#51
  1. UTXOs are unspent transactions or payments that are recorded in your wallet as a balance. They form part of any future payment that comes out of that wallet.
  2. All UTXOs in your wallet are used up in any payment. The balance comes back to you. If all the UTXOs in your wallet add up to cover the amount you’re paying (including fee) then the transaction is valid. If not enough then it’s invalid.
  3. The bitcoin wallet looks at the current fees in the network and calculates a reasonable fee.
  4. You can spread small payments into different wallets. This makes it much harder to track.
#52

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are. UTXOs represent all the inputs that were sent to wallet which are now available to the holder of the wallet as Unspent Transaction Outputs.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? The UTXOs will be summed together in the same manner that if you had an item that cost $7.00 but you only had two $5. dollar bills.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? It is input minus output. You never specify the fee. It is the difference between the inputs and the outputs. It is implied. Never specified.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? You can increase your privacy in your tractions by increasing the number of inputs and outputs going back and forth to different addresses in the same wallet. You can have one input with several outputs on several different days.
#53
  1. UTXO are unspent transaction output.
  2. Transaction will not be completed and be rejected.
  3. The transaction fee what is spent minus what is returned to sender.
  4. The notion of transaction includes private key for increased privacy and/or by using a hardware wallet which is not connected to internet.
#54

  1. Unspent Transaction Output is a transaction that your wallet software creates. This transaction is always equals to the Unspent transaction input plus the transaction fee for this transaction.

  2. That means you have insufficient funds and your transaction won’t go through.

  3. A wallet program analyses the history of the past transaction fees on the network and suggests a fee that will ensure that your transaction goes through in a reasonably fast period of time.

  4. You can’t. All bitcoin transactions are visible for everyone in the block explorer. Best thing one can do, is not show your public address to sources where it can be compromised ( such as block explorers, social media etc )

#55

  1. UTXO is unspent founds on the blockchain who together makes up for example my balance in my wallet.

  2. Then the wallet will create a transaction with several inputs from UTXOs

3 Input minus Output equ. transaction fee. It makes a calculation of the fee baces upon earlier transactions to make the transaction added to a block, fast enouth.

  1. I would make sure that the “change” and possible another transaction would go back to a wallets that I controll.
#56

Unspent transaction outputs are funds that are available to be spent.
They are also the input transactions to or of the next transaction.
they are controlled and managed by your wallet.

The transaction would not be processed.

The transaction fee is managed by the wallet to allow you a reasonable process time that is
average out.

you can specify or send funds to multiple sources including yourself in one to many transactions
therefore making it difficult for anyone to track.

#57
  1. The UTXO is unspend input transaction send to your wallet address.
  2. It combines several TXO’s until the amount has been covered.
  3. As a total amount minus actual sent amount.
  4. Use several output addresses.
#58
  • Describe what Unspent Transaction Outputs (UTXO) are.
    They are transactions that you (wallet) have not used as output. A transaction ID that represents a specific amount of coin to an address.
  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The wallet would pick the UTXOs that when combined would cover the output plus fee. 2+3 = 4.99 + .01 fee.
  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    By default/implied. The fee is the difference between the total input coin amount and the output coin amount.
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Use a mixer. Use new keys for each of the following. Send to many outputs, combine in random transactions then wash rinse and repeat.
#59

1, UTXO aere the balance left in your wallet that it keeps track of.
2.If you don’t have enough it will be declined
3. The wallet checks tht network/blockchain and figure out the right fee.
4. Several addresses and outputs can resoult from one input.

#60

Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are the outputs of transactions that have not been spent and may be used as inputs for future transactions.

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
You would not be able to complete your transaction, or you would need to use multiple UTXOs as inputs for the transaction.

How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet may calculate the transaction fee as the difference between the transaction inputs and outputs. A wallet may automatically specify a transaction fee or allow the user to modify it.

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You could send outputs to different addresses each time so the destinations are harder to trace.