Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#6129

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

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#6130

1.) Unspent Transaction Outputs (UTXOs) are transactions you’ve received from somewhere to your wallet. You are able to spent these UTXOs.

2.) If you don’t have any UTXOs large enough to cover a transaction then multiple UTXOs will be used. And if you all the UXTOs you have don’t add up to cover the transaction then you can’t make the transaction.

3.) The to input minus output would be the transaction fee.

4.) By using several outputs (with some addresses you may own) so no one can track which transaction was the main one. This works since transactions and addresses don’t have your name or information on it.

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#6131
  1. UTXOs are the balance available to spend.
  2. Your wallet will use more than one UTXO to cover the transaction. If there is not enough in the sum of the UTXOs available, the transaction will not occur.
  3. The difference between the input and the output and the transaction fee can be found on the blockchain.
  4. Use a different address.
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#6132
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    total of UTXO is the wallet balance.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    no transaction; - do ivans course try get a well paying job in block-chain to get more input UTXO to my wallet. Then try UTXO again.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    UTXO minus UTXO input = fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    use a private blockchain
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#6133

UTXOs are incoming transactions. Together, they form the balance that is available, minus the outgoing transactions.

Your wallet would gather other UTXOs until the amount is covered. If the sum doesn’t add up to the required total, the transaction will be canceled.

The bitcoin wallet would recommend a fee based on previous transactions. Some wallets will give you the option to raise or lower the fee based on the urgency of the transaction.

The transaction fee is the input minus the output.

You can add more outputs to a transaction: for example, other wallets that you control.

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#6134
  1. UTXO’s are outputs from previous transactions that carries the info of the ammount of BTC that is made available for X address (associated with a private key) to spend as an input in a new transaction.
  2. If a single UTXO isn’t enough, more UTXOs available are taken to construct a transaction in a way that the sum of the inputs must be equal to the outputs + fees. In other words, you spend whole UTXOs that will cover for the ammount you need to send + transaction fees, and if there is ammount left, it is sent back to the address you control as a new UTXO.
  3. The fee is taken from the UTXO or sum of UTXOs, and wallets usually calculates the fee automatically based on previous tx fees paid in the network recently so that your transaction goes thrugh fast enough, but some wallets will have the feature to customize the tx fees to the one you specify.
  4. Making use of multiple addresses you control to construct transactions could give some privacy benefit, considering that a transaction can take multiple UTXOs and send BTC using multiple outputs, that could theoretically be yours and only you know it, added that addresses are random sequences not linked to personal information at first. But in reality is pretty easy to associated an address to a person and track the transactions flux nowadays… Making it truly private requests attention to many other things beyond blockchain address and transaction construction, and using Monero instead of Bitcoin would make that goal easier to achieve…
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#6135

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Represents some amount of digital currency which has been authorized by one account to be spent by another.

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

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

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? by creating a new wallet, and sent to multiple addresses it can be kept private (Not sure if that made sense if anyone wants to correct me?)

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#6136

  1. Describe what unspent transactional outflows (UTXO) are.
    It is the set of inputs and outputs not previously used, arranged in one or more transactions.

  2. What if you don’t have a single UTXO that is big enough to cover your transaction?
    Another UTXO with 2 outputs would be used, one to cover the total of the transaction and the other, with the same issuer address, to “return” the difference.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Determining the weight of each input and output and multiplying by the ratio of satoshis / byte of the moment.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    creating a validation chain, where the bitcoins, when passing from one address to another, are blocked to be used by the last person who takes possession of them.

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#6137

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are transactions that has been sent into your wallet but you are yet to send out. Basically, coins that were sent into your wallet but you haven’t spent.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    All UTXOs will be added to make one lump sum and Tx fee will be charged from that. If still not enough, transaction fails.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Tx fee is difference between Output and total UTXOs (Input).

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Can someone help with this?

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#6138

The most basic approach would be to use a new address every time you receive funds or send change back to yourself. It is impossible to tell who’s sending to whom.

#6139

Thank you so much Maki

#6140

A1. They are the amounts against your private address that can be used to spend and pay fees.
A2. Wallet will check other UTXO and combine to make the transaction. If the total UTXO is no large enough then the transaction will not execute
A3. By check the previous transactions fees on blockchain
A4. You can send amount back to your controlled wallet.

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#6141

It calculates what transactions you have and haven’t spent.
The UTXO will be declined or it will use multiple UTXO’s to cover expense and send the rest back to your wallet
A BTC wallet specifies a transaction fee based on the average fee rate at the time of the transaction
It is very hard to know from the outside where the BTC is going.

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#6142
  1. Unspent trasnactions UTXO are the current balance in your wallet.
  2. Wallet will chose other UTXO that is closer to the amount you need to spend.
  3. Wallet will recomend the transaction fee based on the previouse transactions currently on the blockchain and the fastes way required to confirm the transaction.
  4. You can use different output addresses from your wallet since its imposible to know which addres belongs to your wallet.
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#6143

1 UTXOs are transactions received from your wallet that you have not yet spent.

2 your wallet will combine two different UTXOs into a single output

3 based on the fees paid previously by other users. in that way you know your tx will be processed quicly.

4 it is possible to use a different address anytime you receive funds, in that way it is impossible to tell who’s sending funds to whom

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#6144
  1. Unspent Transaction Outputs (UTXO) are the balance outputs left after the transaction has been made. ie the balance remaining in the wallet
  2. The transaction would fail
  3. Bitcoin wallet will specify the transaction fee by deducting the total transaction output from the Total input transaction.
  4. Increasing the number of outputs can make tracking more difficult, this in result creates an increase in the number of new inputs
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#6145

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Basically the sum of all the inputs I have received but have not yet spent.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Your wallet would check and add together all inputs to see if your have enough, then send the necessary output amount and the change sent back to me, if not then the TX would not be verified.

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

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You could use multiple output addresses that you control so tracking difficulty increases

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#6146
  1. UTXOs are your balance. They are unspent transactions that have been sent to your BTC address.
  2. You can use multiple UTXOs to cover a transaction
  3. The transaction fee = transaction inputs - transaction outputs
  4. You can increase privacy by sending the remaining “change” to another BTC address that you control
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#6147

  1. UTXOs are what you have available in your wallet. They are the unspent outputs of previous transactions that were sent to your wallet. You wallet calculates the total and tells you what your available balance is.

  2. No transaction.

  3. Most BTC wallets suggest a gas fee, some allow you to edit this too. Input = output + gas fee

  4. Use multiple inputs and outputs, different addresses and cold wallets to store your currencies.

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#6148

  1. UTXOs is the available amount of crytp currencies in the wallet, which hasn`t been spent yet. UTXOs have been inputs initially (received currencies).

  2. The transaction cannot be entered into the blockchain and will fail. The UTXOs will remain the same in the wallet.

  3. It takes the amount of UTXO and substracts it with the amout of the intended input. The resulted difference is the transaction fee.

  4. You can use several wallet addresses to receive or send coins.

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