Homework on Bitcoin Transactions and UTXO - Questions

[samjd]

1. UTXOs are transactions sent to a wallet as inputs that have not yet been spent. The total of these inputs are the balance of the wallet.
2. If your wallet does not have enough input UTXOs cover a new transaction it would fail and give you an error message.
3. When deciding what fee to use in a transaction, the bitcoin wallet will look up previous fees used in previous transactions on the blockchain and suggest an amount to get your transaction into the next block. It will also check to make sure you have enough input UTXOs to cover the transaction + fee. Some wallets allow you to change the fee amount.
4. Creating a transaction with multiple outputs back to you will increase the privacy of the transaction.

[solidfire]

@ivan

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

1. UTXOs are all transactions which summed up define your balance. When unspent you are able to still spent.
2. If the amount > the amount you want to sent = transaction possible, if < then transaction not possible.
3. Fee is amounted by total of inputs - totals of outputs
4. Create multiple output adresses.

[Will_Day]

1. UTXOs are the results of prior transactions, that are just waiting around to be spent.

2. If all of your UTXOs are small, then they will be combined together as inputs to cover for the larger transaction.

3. The bitcoin wallet specifies the transaction fee, by not specifying where a certain amount of input goes. Any difference between the sum of the inputs and the sum of the outputs is the fee.

4. One way to use the transaction inputs and outputs to increase privacy is to send to multiple recipients at once, and not using round numbers, that way the change and the transaction are not obvious.

[bitbooz]

1.UTXO is the wallet balance.

2.The transaction will not go through the transaction will not be accepted by the miners.

3. The difference between inputs and outputs.

4.Generate new adresses.

[K.Deorgins]

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

They are the outputs from sender to wallet and inputs of said wallet

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

Multiple UTXOs would have to be used to cover transaction if available

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

Automatically determined based on history of fees

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

By use multiple addresses to facilitate transactions

[Simo]

1. UTXOs are outputs from transactions that also become the inputs for future transactions for any given wallet address.

2. Nodes would not broadcast it because the transaction would not be valid.

3. The transaction fee is specified by subtracting the output UTXOs from the inputs.

   • ie. Fee = Input - UTXO

4. By specifying many output address and including another address for yourself, one can increase privacy during transactions.

[aterweeme]

1. The balance of your wallet stored on the blockchain
2. Your transaction is not valiutxod and therefore rejected bij the nodes
3. tx fee = utxo - spent output
4. utxo = spent output recipient + remaining to anaother adress of yourself

[DaanBoshoven]

1. The unspent balance in a wallet.
2. The transaction cannot take place.
3. The difference between input and output (= fee)
4. Using many different inputs and outputs.

[Turbinesurgine]

1.UTXO is the incoming tx to the address

2.if all utxo’s incoming are not enough then you will not be able to send like with just 1 sat for ex.

3.the tx fee is basically the difference from the spent amount to the sent amount and the diff went to the block winner

4. Add additional “self controlled, or Buddy wallets” to the TX, never use an address twice

[Turbinesurgine]

I have a Question,; Why all the UTXO must be moved on a TX? why send to other address if private key is secure?

[JeffE]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXOs are essentially your balance. you have spent and unspent transactions. Spent transactions are transactions that you send to others and UTXOs are transactions that are basically 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?
   Transaction would be voided.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   It would be the difference between the inputs and the outputs.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Using multiple inputs and outputs will increase privacy. This will make it harder for people to track from who and to who transactions have been sent.

[Christopher]

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXO are the received funds and the sum of UTXO ist your balance.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   The transaction would be denied by the miners.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The wallet will calculate the fee by checking recently used fees so that the transaction will be reasonably fast.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   By sending to more than one output address.

[leontm]

1. UTXO = unspent transaction output. UTXOs are responsible for beginning and ending each transaction.
2. You use multiple UTXOs and the remaining amount is returned as part of the transaction (like when paying with cash).
3. Inputs = outputs + fee
4. By using multiple inputs and outputs in a transaction you make it more difficult to trace the transaction, at least regarding someone reading the block explorer. Also continuously generate new addresses to be used.

[ZAR]

@ivan

• Describe what Unspent Transaction Outputs (UTXO) are.
• What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
• How would a bitcoin wallet specify the transaction fee when creating a transaction?
• How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

1. UTXO is the balance of the wallet.
2. The transaction is declined.
3. It is the difference between the input and the output.
4. You can have many different input and output addresses that encourages privacy.

[Chillie]

1. Unspent transaction outputs (UTXOs) are received value or btc that are tallied together by the wallet to obtain your full balance.

2. If not a single utxo is enough to cover a transaction then multiple utxos’ will be used until the value is sufficient.

3. Tx fees are calculated by taking the difference between the input and the output of the tx.

4. By limiting the amount of times an address is used, also by using more than one address and choosing new addresses for each transaction.

[Vivek]

1. Blockchain doesn’t store coins like in traditional financial system. Instead it records transaction. In transactions there are inputs, and the output it gives is called UTXO. Unless this UTXO is spent (i.e it becomes input for another transaction) it will remain as UTXO for the corresponding private key.

2. Multiple UTXOs will be combined together as inputs to come to the required larger transaction amount. If the inputs then becomes slightly larger than the required amount the remaining will be sent back to you again as an output.

3. The transaction fees will be Input - output. Sometimes wallets determines fees in such a way so that the transaction is quickly executed in the blockchain.

4. The transaction input and output is converted using the hash function. Hence it is difficult to identify the sender and recipient in the transaction from it, thereby increasing security.

[Filippo]

1. When someone sends you “money” (transaction), you have an input. If you don’t make another transaction to someone else, the transaction you received remains an unspent output (UTXO)
2. Your wallet brings together your UTXOs. If they cover the transaction you want to do, it will be executed, otherwise it will be rejected
3. Doing the subtraction between inputs and outputs.
4. Always generating new addresses. So it will be difficult to know the output that sends you back the “money”.

[alexglebov]

1. UTXO are all incoming transactions to your wallet that you have not spent yet.
2. You use multiple UTXOs with total sum greater or equal that your transaction.
3. Wallet will check previous fees on the network and pick the amount that has decent chance of getting selected by the miners
4. You only show inputs and outputs in the transaction and not the account balance.

[gabrieleg]

1. Unspent bitcoin in your wallet.

2. It would not be a valid transaction on the blockchain.

3. When you start to make a transaction the fee is recommended by the platform or ledger etc…

4. By generating new addresses. Since addresses are not tied to a individual just random #s. This would make tracking more difficult.

[Fabrice]

@Khash

• UTXO is the bunch of output and inputs collection
• that means it will basically won’t work

Utxo’s mean unspend transaction output. (not input) But the owner can use them in the input of a new transaction.

When you don’t have any single utxo large enough to cover the amount, you can combine more smaller utxo’s to cover the amount. Only if the sum of all your available utxo’s is enough, the transaction will fail