Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#6009
  1. UTXOs are the balances left in your wallet.
  2. If your UTXO is not enough to cover the transaction fees, the transaction will be declined,
  3. The wallet checks the blockchain and confirms the the fees
  4. Use different address for each transaction.
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#6010

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

#6011
  1. UTXO are actually the bitcoins that your private key can spend at any point in time
  2. Then multiple UTXO are combined to complete the transactions
  3. Based on previous fees
  4. You can send some bitcoin to yourself (another address)
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#6012

1.UXTO are funds you can spend.
2. You are able to use the sum of multiple UTXO’s to cover a transaction
3.the wallet will query the blockchain to calculate the transaction fee.
4.From the outside you are not sure who is the owner of which wallet and you are able to send funds to yourself by sending them to a wallet you control so outside looking in you are not sure which wallet (if any) are controlled by the original sender .

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#6013
  • UTXOs are the culmination of all unspent transactions that an account has received as input.
  • Transaction would not be validated
  • Using a simple mathematical equation
  • Can use UTXOs to send to multiple addresses from multiple addresses
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#6014
  1. UTXO are unspent amounts you will have to use.
  2. The transaction will not go through and will be cancelled
  3. It will subtract the input amount from the output amount
  4. To send to a different address than the first input you made
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#6015

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

#6016

  • Describe what Unspent Transaction Outputs (UTXO) are.
    It’s the amount of crypto remaining after a transaction

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

The transaction wouldn’t go through

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is the input minus the output

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    If you use multiple addresses it makes it hard to trace back to who’s wallet is who’s

#6017

Homework - UTXO’s

Describe what Unspent Transaction Outputs (UTXO) are.
It’s the crypto balance you have not spent yet.

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your transaction will get denied by the nodes (your wallet will let you know in advance)

How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet will check the best option of fee so your transaction will be made quickly.

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

#6018

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

#6019

Clear, thank you maki!! :smile:

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#6020

Describe what Unspent Transaction Outputs (UTXO) are.

=> These are outputs of transactions that were not used yet as inputs to other transactions.

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

=> The user should use multiple UTXOs (belonging to his wallet ) as inputs to the transaction.

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

=> the transaction fee is the difference between the sum of the inputs and the sum of the outputs.

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

=> Use different addresses for receiving bitcoin, including using a different adress for the change (the output address that is controlled by the wallet owner).

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#6021
  1. UTXO are coins received into your wallet but not yet spent.
  2. The transaction would be invalid and would not go ahead
  3. input - output = fee
    4.1 input can send a transaction to multiple addresses. By changing address it would be difficult to tell sender
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#6022

  1. UTXOs is the balance of your wallet that you are able to spend.

  2. Your transaction would fail

  3. Input - output= fees

  4. Multiple addresses are generated so it makes it hard to know which one is going back to sender

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#6023
  1. Basically your balance. which inputs can be sent as outputs.
  2. transaction wouldn’t go through.
  3. it would search the blockchain for similar transactions and offer you the fee, that would get you in the blockchain the soonest.
  4. Send the transaction to multiple addresses including your own.
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#6024

  1. The UTXO are all the summed together transaction inputs not spent.

  2. If you do not have a large enough UTXO to cover your transaction, the entire process will be denied. Similar to a central banks NSF.

  3. Your bitcoin wallet would query with the blockchain to determine if there are any unprocessed blocks that would fit your transaction requirements, or you can manually choose the fees you don’t mind incurring to have your transaction processed.

  4. You can increase your privacy, by using various addresses to receive your outputs so nobody will be able to decipher which coin goes back to which addresses.

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#6025

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

#6026

Awesome, appreciate the feedback.

#6027

  1. UTXOs are the transaction outputs from one wallet address to another. Only when the receiver sends the funds to someone else do those UTXOs become inputs.

  2. If there isn’t one single UTXO that is large enough, the wallet will combine other available UTXOs to complete that transaction.

  3. It shows the input amount and the output amount less the TX fee. F.e. input - 1.0, output - 0.97, which means that the transaction fee is 0.07. Some wallets suggest the TX fee size but you can also adjust it manually in the wallet settings.

  4. I can send a transaction to a few different addresses, of which some can be recipient addresses and some mine.

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#6028
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