Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#6049

  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?

  5. UTXO is like change left from a previous transaction.

  6. You would have to use more than one UTXO

  7. The fee is calculated from the remainder of all inputs minus the outputs of a transaction.

  8. Generate new output addresses and also have multiple input adresses.

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#6050
  1. Describe what Unspent Transaction Outputs (UTXO) are. when you send a transaction in bitcoin you actually send your hole wallet to an adress and what ur basically getting back is the unspent transaction
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? you will not be able to create your transacation like ivan says buy more bitcoin
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?UTXO minus the UTXO output input= result in getting the fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? well all you gotta do is use a private blockchain to do so.
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#6051

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

By having more output addresses that increases the difficulty of tracking someone. It brings enhanced security.

#6052
  1. UTXO are unspent transaction outputs that you have received from a previous transaction.
  2. The transaction would not go through unless you have enough UTXO
  3. It depends on the speed of the transaction you want to send it. It is either cheaper but take longer to send, or more expensive but sends a lot faster.
  4. Increase the number of outputs that are sent. Send it to multiple addresses so others would not be able to tell how much you send for each.
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#6053

  1. They are the outputs of a transaction that have not been processed as input for another transaction.

  2. Your wallet will choose what UTXO’s it has available and then use more than one to fill the transaction. If the sum of all the UTXO’s is equal or lager to the output then the transaction will go through.

  3. It is based on the congestion of the network and the speed at which the sender wants the transaction to be processed. TX Fee = Inputs - Outputs

  4. Have the unspent balance of a transaction sent to a different wallet that you hold the keys too.

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#6054
  1. It’s basically the balance in your wallet - the amount you have received in your wallet as an input and that is stored in your wallet, and that you haven’t spent yet.
  2. If you have balance in your wallet, different UTXOs can be combined to cover the transaction. If you don’t have enough balance, the transaction won’t be completed.
  3. It will check the blockchain to see how much was the fee for recent transactions, to come up with a value that is similar and enough for the transaction to be completed “fast”. And the input = output + fee, or fee = input - output.
  4. Use different outputs and inputs - you can have different addresses of your own, meaning you could send outputs to different addresses of your own.
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#6055

  1. UTXO are the balance left in your wallet

  2. Your transaction would be declined

  3. the difference between inputs and outputs

  4. Many outputs can result from one input

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#6056
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO is the last amount of funds recorded in the wallet history from the last transaction.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    if the amount of funds is not enough of a single or sum of multiple UTXOs in a transaction would be rejected from the nodes in the blockchain that are validating the transaction
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    input fund minus output fund = TX fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    in one transaction you can send or receive to multiple wallets; probably send you back some funds into your own wallet.
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#6057

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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#6058
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs are basically inputs yet to be spent on the blockchain. If you have an incoming TX to your wallet , that is a UTXO that was spent by another sender/wallet ( I.e your friend , mom etc) that is now incoming into you wallet as a new UTXO ( to spend) . That UTXO is no longer available in the wallet that sent it .

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

The wallet can only spend if the sum of the inputs matches the calculated output ( plus fee)

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

The wallet will recommend a fee amount based on the TX ( amount)

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

The wallet has security features built in as it encrypts all inputs and outputs by generating a new output address

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#6059

thank you… that makes more sense now with multiple input and or multiple outputs

#6060

  1. UTXO are the sum of the output and the transaction fee. Total account balance must be spent in a transaction, so some amount gets sent to the seller, some amount (the fee) gets sent to the miners adn the remaining value gets returned to the users account.

  2. The transaction would be denied

  3. Transaction fees are calculated based on the blockchain. There is an average price that miners are accepting, so the wallet will gnerate a fee that is the “going rate”.

  4. One could use different addresses when recieving a transaction

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#6061

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

#6062

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    It is the balance of transactions that your wallet has received and that you are able to spend.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Then no transaction would take place, because there is not enough balance. It would be invalid.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Inputs = Outputs + fees. The wallet calculates for you.

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

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#6063

Where would these other UTXOs come from? Another wallet? Would that then require two transactions resulting in a higher fee?

#6064
  1. Describe what Unspent Transaction Outputs (UTXOs) are.

They are unspent transactions from previous inputs.

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

Your transaction would be declined.

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

The transaction fee is the input minus the output.

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

You can increase the privacy by sending and receiving transactions to multiple addresses.

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#6065

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’s are the unspent inputs going into a wallet and act as a form of balance.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    You can use multiple UTXO’s to meet the amount required for the transaction. If the total amount of combined UTXO’s is still not large enough to cover the transaction, then it will be invalid and denied.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Tx fee = Input - Output

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By using multiple inputs and outputs that go to different wallets you can increase anonymity.

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#6066

The wallet will use multiple UTXOs that have a combined value that is equal to or greater than the transaction amount plus the fee. If the wallet does not have enough then the transaction would be declined.

#6067

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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#6068
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Unspent Transaction Outputs (UTXOs) result from the inputs that go into a wallet to become outputs for new transactions. They are Unspent Transaction Outputs and can construct a new transaction. They may be bitcoins you received but have not spent.

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

Your wallet adds all your UTXO inputs. If they’re more than enough to cover the transaction, it covers the transaction and sends the rest to you. If they’re not enough, it doesn’t process the transaction and rejects it.

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

Input = Output + Transaction Fee. The wallet looks at the blockchain, decides which inputs to use, shows options in transaction fees or picks a transaction fee that gets you into the blockchain quicker, and always ensures that the Input = Output + Transaction Fee. The wallet does not specify the transaction fee. It determines it from the equation connecting input, output, and transaction fee.

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

Firstly, the wallet holds your keys and keeps them secure. It does not show your balance. From the outside, you cannot know how much is involved in a transaction. This means others cannot know what is involved in your transaction also. The wallet pulls inputs together and adds them for every transaction, always ensuring that the inputs equal the output plus the transaction fee. You can have the wallet return any remaining amount to you after the transaction and transaction fees are paid.

Also, since encryption prevents you and others from knowing where each transaction goes, you can’t be certain which of the UTXOs output to you. This increases privacy in your transactions.

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

Unspent Transaction Outputs (UTXOs) result from the inputs that go into a wallet to become outputs for new transactions. They are Unspent Transaction Outputs and can construct a new transaction. They may be bitcoins you received but have not spent.

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

Your wallet adds all your UTXO inputs. If they’re more than enough to cover the transaction, it covers the transaction and sends the rest to you. If they’re not enough, it doesn’t process the transaction and rejects it.

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

Input = Output + Transaction Fee. The wallet looks at the blockchain, decides which inputs to use, shows options in transaction fees or picks a transaction fee that gets you into the blockchain quicker, and always ensures that the Input = Output + Transaction Fee. The wallet does not specify the transaction fee. It determines it from the equation connecting input, output, and transaction fee.

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

Firstly, the wallet holds your keys and keeps them secure. It does not show your balance. From the outside, you cannot know how much is involved in a transaction. This means others cannot know what is involved in your transaction also. The wallet pulls inputs together and adds them for every transaction, always ensuring that the inputs equal the output plus the transaction fee. You can have the wallet return any remaining amount to you after the transaction and transaction fees are paid.

Also, since encryption prevents you and others from knowing where each transaction goes, you can’t be certain which of the UTXOs output to you. This increases privacy in your transactions.

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

Unspent Transaction Outputs (UTXOs) result from the inputs that go into a wallet to become outputs for new transactions. They are Unspent Transaction Outputs and can construct a new transaction. They may be bitcoins you received but have not spent.

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

Your wallet adds all your UTXO inputs. If they’re more than enough to cover the transaction, it covers the transaction and sends the rest to you. If they’re not enough, it doesn’t process the transaction and rejects it.

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

Input = Output + Transaction Fee. The wallet looks at the blockchain, decides which inputs to use, shows options in transaction fees or picks a transaction fee that gets you into the blockchain quicker, and always ensures that the Input = Output + Transaction Fee. The wallet does not specify the transaction fee. It determines it from the equation connecting input, output, and transaction fee.

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

Firstly, the wallet holds your keys and keeps them secure. It does not show your balance. From the outside, you cannot know how much is involved in a transaction. This means others cannot know what is involved in your transaction also. The wallet pulls inputs together and adds them for every transaction, always ensuring that the inputs equal the output plus the transaction fee. You can have the wallet return any remaining amount to you after the transaction and transaction fees are paid.

Also, since encryption prevents you and others from knowing where each transaction goes, you can’t be certain which of the UTXOs output to you. This increases privacy in your transactions.

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