Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#6029

  1. UTXO’s are transactions which which are not yet spent.

  2. The transaction would not be valid - therefore will never reach the stage of being confirmed by a miner. Otherwise, it is still possible to sum up different UTXO’s, making the transaction and receiving the change back on one of my addresses.

  3. FEE = Input - Output
    In addition there are wallets which enable you to set the fee on your own.

  4. Splitting the output among different addresses. One/or more can be an address which I control, whereas one/or more can be the actual address where I want to sent funds to e.g. to pay for something.

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#6030
  1. Basically funds that have been sent to you, that you haven’t spent yet. They are recorded on the blockchain.
  2. The transaction would not go through if you don’t have enough funds. OR if you have other UTXOs, it would combine with another (or multiple) UTXO to cover the total amount.
  3. Input - output = transaction fees
  4. The output address is impossible to tell where the total funds are going, and who owns those addresses.
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#6031

UTXO (unspent transaction output) is the term describing not yet spent coins as stored on the blockchain and shown in your wallet. When you send a coin it is an output creating a UTXO and the recippient of this output receives it as an input that is now a new UTXO.

Single UTXOs are gathered together until the amount is big enough and then sent. The change will be sent back.

A btc wallet specifies the fee by checking on the blockchain previous fees and gives a proposal for a fee that will get the transaction through in a resonable time.

One could use the notion of transaction inputs and outputs to increase privacy by sending a transaction to multiple adresses to both others and yourself at the same time.

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#6032

1.Describe what Unspent Transaction Outputs (UTXO) are.
UTXO are actually old outputs but for you personally it will be an input. It is in other words the beginning or ending of every transaction.

2.What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The network of nodes will not recognize the transaction and will deny this transaction as the output will be higher than the input you have at the moment.

3.How would a bitcoin wallet specify the transaction fee when creating a transaction?
The transaction fee will be the difference but input and output (your transaction)

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

No one knows who is the input and output, except the involved people (with their private keys). You could increase more the privacy by raising the outputs (more wallets which you can own as well as it is not visible on the blockchain who owns all these wallets).

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#6033

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are inputs assigned to your wallet that the wallet displays the sum as your balance.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The wallet would combine multiple UTXOs and then you would receive the “change” as an input back to your address. If you do not have a balance that covers the transaction it would be denied.

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

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Inputs can be sent to multiple outputs, including yourself. From the outside looking in no one would know if you sent any amount to a wallet you control.

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#6034
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs is the unspent currency you have in your wallet

  1. 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. Kinda like getting your card declined somewhere but spared the in person awkwardness

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

The wallet does it automatically by subtracting the output from the input

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

Sending to various addresses that could even be to yourself

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#6035

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    a. A UTXO is an output from a transaction that has not been spent (or put through another transaction)

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    a. Your wallet will aggregate your UTXO’s and construct a transaction to cover the transaction. If you don’t have enough UTXO’s to cover a transaction then you cannot perform the transaction

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    a. It subtracts the input from the output, with the difference being the transaction fee

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    a. Create new addresses in your wallet so when you are conducting a transaction you can send several outputs with one of them being your new wallet address. This will help further obscure who the receiver of the transactions are

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#6036

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

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#6037

Describe what Unspent Transaction Outputs (UTXO) are.

Coins that have previously been sent to your address and are free to be used as inputs into a new transaction.

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

The transaction would not be able to go through.

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

It estimates the transaction fee by looking at previous transaction fees and selecting an amount which should lead to a reasonable wait time.

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

You could partially obtrusicate the real intention of a transaction by sending coins not only to the intended address but also to multiple other addresses which you control.

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#6038

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

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#6039

  1. A UTXO is an output from a previous transaction that has been signed and confirmed on the blockchain. The output is classified as “unspent” as it has not used your private keys to initiate another transaction which would turn that UTXO into an input.

  2. No transaction is possible.

  3. The bitcoin wallet would know the transaction fee by taking the balance of the outputs and comparing them to the inputs to verify the difference as the transaction fee.

  4. It increases privacy because only your private key can read the blockchain to display to you your balance. New inputs and outputs are generated when doing transaction that helps with privacy.

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#6040

  1. How much BTC you have in your wallet

  2. You would send your entire UTXO to cover the w/e your buying and then you would get “change” back to your wallet.

  3. By whatever the market value is at the time, it varies

  4. You can send your BTC to an infinite amount of wallets, with different amounts, making it very difficult to id who’s wallet it is, how many wallets there are and how much BTC is own by the individual.

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#6041

Bitcoin transactions and UTXO1

  1. Transactions that have been sent to your wallet address that have not been spent.

  2. You would have to send more than one UTXO or the transaction would fail.

  3. By looking at the transaction fees for recent transactions.

  4. Using inputs and outputs increases anonymity and makes it hard to track where transactions went.

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#6042

1.UTXO’s are basically inputs to your wallet address

  1. The transaction won’t be sent

  2. The amount sent is the transaction+fee

  3. the output can come from one of many addresses. Can’t narrow it down

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#6043

  1. Unspent transaction outputs are the amounts of BTC you do not spend, like the name says.

  2. If you don’t have a single UTXO large enough, you can use multiple UTXOs especially since inputs need to be spent.

  3. Transaction fee=Inputs-Outputs
    Not sure how it is actually calculated, but he explained this.

  4. With wallet addresses there is increased privacy because we cannot see to whom you sent that BTC. It could be to yourself and no one would know. You also have to spent all UTXOs so, its very plausible that a part is going back to you.

1 Like
#6044
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs are the result of an incoming transaction to a wallet that has not been spent yet. A wallet can receive different inputs (incoming transactions), that if not processed further after they have been received, represent individual UTXOs.

  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The wallet able to construct the transaction by combining multiple smaller
    UTXOs that match up with the value. The transaction will cover the amount, excess value would be sent back to the sender once transaction fees have been deducted.

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

Automated process, wallet will recommend an appropriate fee based on previous transactions, and the fee itself is not explicitly specified, it’s implied.

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

The addresses are anonymous, hence one sender can create multiple transaction inputs and outputs that could all be linked to the same person.

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#6045

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • unspect crypto currency in your wallet
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • you cannot make a transaction
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • it would network for typical price that is not too slow as transaction - and then construct and propose the fee.
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • the output can never reveal the input as this is the nature of hashing. (designed by NSA for this)
  • The one input can lead to numerous outputs to make up the total and it is hard to know where they are going, some can go back to the sender.
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#6046
  1. Unspent transaction outputs are the balance of your wallet that are available to spend.
  2. Your wallet would combine multiple UTXO’s to cover the amount equal to the transaction minus the transaction fees.
  3. The transaction fee would equal the difference between the input and the output.
  4. By adding multiple outputs to different addresses which you may own.
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#6047

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

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#6048

1.Describe what Unspent Transaction Outputs (UTXO) are.
UTXO is the amount of unspent crypto in a wallet.
2.What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? It will see if your wallet UTXOs has enough to cover the tx if it does the tx will be signed if not it cannot be signed because you don’t have enough to cover fees.
3.How would a bitcoin wallet specify the transaction fee when creating a transaction?
Amount of inputs minus the amount of outputs calculates the transaction fee but people can also customize the fee as well.
4.How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? Multiple outputs makes it impossible to locate the output therefore increases privacy.

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