Homework on Bitcoin Transactions and UTXO - Questions

[MarBlockchain]

1. It is an amount that I can spend.
2. I could not create the transaction, or my wallet could not do it.
3. Inputs= Outputs+ fee, it will deduces the fee.
4. I believe that a transaction is completely anonymous, each input and outputare unknown, by itself is very private, nevetheless you can split and Input in many utxos.

[RagingLlama]

1. UTXOs are transactional outputs from a spent transaction that are now available to be spent for the bitcoin address they were transacted to.
2. Your other UTXOs would get summed to meet the amount required for the transaction.
3. A bitcoin wallet will calculate a recommended amount for the transaction fee based on the fee amounts of previously recorded transactions and what would result in reasonable fast transaction processing.
4. You can use the notion of transaction inputs and outputs to increase privacy in your transaction by constantly using a new btc wallet address to store any UTXOs remaining instead of using the originating BTC address.

[ChadSmith]

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   A: These are a total sum of available inputs received that can used in future transactions.
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 calculate the total available balance across all UTXO’s and if there isn’t enough to cover the transaction, it will not allow you to initiate the transaction.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   A: It would have a look at the blockchain and pre-determine the fee for the transaction.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   A: It uses a different address for the incoming input back to your own wallet and therefore provides a level of privacy.

[Maki]

@MarBlockchain

I could not create the transaction, or my wallet could not do it.

It will sum up more UTXOs. If there is no sum of multiple UTXOs that make up larger output, the transaction is invalid.

[teddyrockwell]

1. UTXOs are the previous inputs or transactions that a wallet receives and serves as an indicator or balance of how much of a can be sent as on output.
2. You would not be able to send the transaction and it wouldn’t be able to be added to the block.
3. The wallet specifies the fee as the difference between the UTXO input and UTXO output (+ fees).
4. Transaction inputs and outputs could increase privacy in transactions because even if one public wallet is known, that wallet is capable of sending funds to other addresses that they may own. There’s layers of possibility in which someone may make transactions with only themselves or a bunch of other unknown addresses.

[vladg]

1. Basically it’s your outputs that are not spent. This can be translated as your current Balance for specific tokens/coins.
2. The transaction will be rejected/invalidated
3. The Fee is automatically calculated - Input-Ouput
4. Use multiple wallets to send and receive funds.

[Anemos]

1. They are all my input transactions that never who have not become outputs themselves. They are therefore called utxo.
2. You take more utxo until you reach the desired sum.
3. From previous blocks and averaging the fees. The miners decide which transactions to process first and the price is determined from there.
4. Using multiple addresses.

[Maki]

@teddyrockwell

You would not be able to send the transaction and it wouldn’t be able to be added to the block.

@vladg

The transaction will be rejected/invalidated

It will sum up more UTXOs. If there is no sum of multiple UTXOs that make up larger output, the transaction is invalid.

[TopNomad]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   It’s a transaction residual.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   Transaction won’t move forward it will be incomplete.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The (input - output) + the fee = total

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Every outputs a new address therefor it’s anonymous.

[Pernu_Menheer]

1. Those are transactions stored on the blockchain that represent money sent to a particular person

2. Your wallet would use multiple UTXOs to cover the transaction.

3. The fee would be the spent transactions minus the value of all the current proposed transactions.

4. You can send money to another address that you control and know one needs to know that you control it and actually sent it to yourself.

[Maki]

@TopNomad

Transaction won’t move forward it will be incomplete.

It will sum up more UTXOs. If there is no sum of multiple UTXOs that make up larger output, the transaction is invalid.

[Alexander_Hernandez]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXO is money that has been sent to a private key that is able to be spent. That money was sent from another address and is calcuated by the wallet on its own.

2. 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 move forward if there is not a total greater than what is going to be spent. The combined totals of various UTXOs can be added together and used as various inputs to pay out output. The user can add another wallet address they own and send themselves change back.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The transaction fee is always there and is a give in when it comes to making BTC transactions. Miners use higher transactions fee’s in order to make money. The input minus the output will be the transaction fee.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   One wallet could be sending money to themselves using a different wallet and spreading their own money out. Having multiple wallets come in handy when making purchases in BTC, so the change can always come back to one of the users wallets.

[Adrienn_Rimbauer]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   They are unspent transactions you receive and they haven’t been sent as an output.

2. What would happen if you don’t have any single UTXO that is large enough to cover your transaction?
   The UTXOs will be summed up until the amount you need is covered. If it’s larger than what you need to send, then the amount which covers the cost of the transaction will be sent to the recipient and the rest (balance) will be sent back to your wallet.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The transaction fee is calculated from your inputs and the outputs. For example, if you send 4 bitcoin and you have 5 bitcoin to send it from, then the transaction fee is 1.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   You can create more output addresses of which some or all go back to you.

[jdiggs1026]

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

Funds sent to your wallet that are unspent

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

It will fail, your wallet will not generate the transaction

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

It calculates it relation to the existing fees on the blockchain.

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

You are unable to determine who owns the wallets that money is being sent to and from. Different addresses are used for receiving transactions

[RJG_101]

HW

1. Describe what Unspent Transaction Outputs (UTXO) are.
   Unspent Transaction Outputs are the latter part of a 2 part system that is used to track the movement of money. The way that money is tracked as UTXOs is simple:
   inputs first, then once the inputs undergo a transaction they become outputs. Outputs are the sum of the remainder of inputs which is summed and ultimately
   they are the actual money amount in your wallet.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   If there is no single UTXO that is large enough to cover a transaction then the transaction will not take place.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   A bitcoin wallet woult specify a transaction fee as a separate output of the main transaction.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Privacy could be increased using inputs and outputs by splitting the outputs to various wallets that you may or may not own. Transactions can be sent to wallets
   discretely and no one knows who owns which wallets.

[sarah1]

1. UTXO is your balance available from previous transactions
2. The wallet will check your total sum of UTXO to see if it can generate an exchange,

3. Transaction fee is figured out from subtracting input minus output
   

4. By creating more output addresses.

[craigw]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   (simply change in a transaction the difference after inputs and outputs.)
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   (the transaction would not go through.)
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   (it looks at previous similar transactions and uses the fastest to complete the transaction)
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   (increased inputs and outputs to various wallet addresses )

[Maki]

@craigw

(the transaction would not go through.)

It will sum up more UTXOs. If there is no sum of multiple UTXOs that make up larger output, the transaction is invalid.

[dlcarter]

1. It is similar to your account balance in traditional banking but it comes to that number a different way.

2.The transaction can not be finalized.

3. It is Input minus the output.

4.By using multiple input and output addresses.

[Matt25]

1. UTXOs are the collections of output data that a wallet has received, but not yet used to create a new input. These essentially comprise the wallet’s ballets.

2. If not a single UTXO in the wallet is large enough to cover the transaction, it will begin adding up UTXOs within the wallet until the required input is met. If the transaction’s required input is larger than the sum of all the UTXOs within the wallet, then no transaction can occur.

3. The bitcoin wallet calculates the transaction fee based on other recent fees on the blockchain.

4. To increase privacy in a transaction, one could increase the number of output addresses.