Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#6169
  1. UTXOs are transactions which you haven’t spent yet.
  2. The transaction would be rejected.
  3. By subtracting outputs from inputs.
  4. By using multiple wallet addresses.
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#6170
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’s would be the sum of all unspent transactions or balance from any previous spend.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Your transaction would not complete and therefore be rejected by the blockchain.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction? It would calculated prior to the transaction and included in the input and the difference would be sent to another address you control.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? By specifying a different address where the output would be redirected to, but which you also own and control.
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#6171

UTXO are transactions left over from a previous one to reduce the cost on the blockchain for future transactions.

If a single transaction is not enough to cover then blockchain will reject.

Transaction fee is calculated when the transaction is done.

Address created from the UTXO can add another layer of privacy.

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#6172

1.UTXO are the amount remained after a transcation completes
2.Wallet will use more UTXO until it is equal to the amount your sending
3.It subtracts inputs and outputs for fee
4.By using more addresses for input and outputs

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#6173

  1. Describe what Unspent Transaction Outputs (UTXO) are. Leftover from each transaction.

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

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

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? Send to several recipients at the same time.

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#6174
  1. The balance shown in your wallet
  2. the transaction would not go through
  3. input = output + transaction fee…and it proposes a fee that will get you into the blockchain fast enough based on looking at previous transactions
  4. generate a new address each time you do a transaction
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#6175
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    A. UTXO’s are the balance in your wallet.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    A. The transaction will decline.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    A. Your wallet automatically will find the right transaction fee required for a transaction.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    A. By having multiple transactions going out from the one input.
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#6176
  1. Unspent Transaction Outputs (UTXO) are the data created from a previous transaction. The total value of all UTXOs connected to a single wallet display your “balance,” or the remaining unspent transactions outputs available for your use.
  2. The transaction will be denied because there are no available UTXOs to meet the minimum transaction amount requested.
  3. The transaction fee is the difference between the transaction inputs and transaction outputs. Also, when sending a transaction, you can choose the fee manually in an attempt to expedite the transaction speed or save more by reducing the amount of the fee, thereby potentially reducing transaction speed.
    4.If you create different addresses each time you do a transaction, all the bitcoin will be moved to that new address (minus the fee or payable amount). Since addresses are not linked to an identity it is hard to try to link utxo’s to an individual.
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#6177
  1. The remainder balance in your wallet that it keeps track of.
  2. The transactions will not be completed if there isn’t enough funds
  3. The wallet will check the blockchain and come up with the correct fee.
    4 Several addresses and outputs can result from one input.
#6178

2.* Try to check if the sum of some smaller UTXOs could add up. If that is not enough it would get denied.

#6179

UTXO is BTC available for our wallet to spend on our behest.
2.
wallet would contact blockchain and combine UTXO’s that it has available.
3.
It would suggest the transaction fee that it thinks it’s the best for you. Input minus output of the transaction = transaction fee.
4.
you can use different BTC addresses for your transactions.

#6180

  1. Unspent Transaction Outputs (UTXOs) are outputs of a transaction that have not been pent yet. They are the inputs for new transactions and are used to track the ownership of Bitcoin.

  2. If you don’t have any single UTXO that is large enough to cover for your transaction, you will need to combine multiple UTXOs to make up needed for the transaction.

  3. When creating a transaction, a bitcoin wallet will specify the transaction fee by setting the amount of satoshis per byte of data in the transaction. The higher the fee, the faster the transaction will be confirmed.

4 To increase privacy in your transaction, you can use the notion of transaction inputs and outputs to break up large amounts of Bitcoin into smaller amounts. This makes it more difficult to trace the origin of the funds and increases the privacy of the transaction.

#6181
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    How much I am able to spend. UTXOs are basically all received Bitcoins combined. For example I receive 1 BTC in Transactions so I have 1 UTXO amount to spend. Input – Spent Output = UTXO
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    My transaction is rejected. I cannot spend more than I received.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It checks the network and looks how active it is. If there are more people trying to make a transaction with the same amount of miners, fees will increase because everybody wants to fulfil their transaction fast in the next block. But the next block can only include around 2000 transactions and will select the ones with the highest fees first.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can either always create a new wallet for new receiving transactions or split the transfer into multiple transactions through different receivers and senders. You can also use an intermediary wallet as a transfer wallet.
#6182

  1. UTXO are transactions a specific address has received and that hasn’t sent it to any other address, which makes it the current “balance” of the that specific address.

  2. Then you wouldn’t be able to do your transaction.

  3. One of the purposes of the wallet is to calculate the most efficient fee based on the fee that is currently being charged at the blockchain.

  4. Since a transaction may have many inputs and outputs, the same person could use one single transaction to send BTC to whoever he/she wants to send and, also, send to any other addresses you control.

#6183
  1. Describe what Unspent Transaction Outputs (UTXO) are.

Wallet keeps track and figure out the UTXO transaction balance.

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

Transaction would be declined due to nodes reaching an agreement that is false transaction

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

Input address equal output address plus transaction fee. Wallet figures out the correct fee.
-Construct
-Sign ( private key )

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

Different sources of addresses to send multiple people BTC and using your private key to sign transactions

#6184
  • UTXOs are unused outputs of Bitcoin transactions that are available for spending as inputs in new transactions.
  • If a single UTXO is not large enough to cover a transaction, multiple UTXOs can be used as inputs, which can increase the size and cost of the transaction.
  • Bitcoin wallets specify transaction fees by including a fee amount that is paid to miners, based on current market conditions and desired transaction speed.
  • Transaction inputs and outputs can be combined using CoinJoin to increase transaction privacy by making it harder to trace the flow of Bitcoin
#6185
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    is when i need to spends new translaction
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    i you have multiple utxo you can combine them for larger amount of btc
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    input + output adress + transaction fee
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? send to more adresses to smaller amounts
#6186

  1. Unspent transactions are basically inputs of monies the blockchain tracks which at some point convert to outputs, then the initial input is referred to as spent until another input event occurs.

  2. Either the blockchain will look to see if you have any other inputs to help cover the transaction or the transaction itself will be rejected.

  3. The bitcoin wallet will then look at the previous transaction fee to help determine the best possible fee for the current transaction.

  4. Use multiple wallets.

#6187
  1. Unspent Transaction Outputs (UTXOs) refer to the remaining balance of a bitcoin transaction that is not used as an input in any subsequent transaction. Essentially, when a bitcoin transaction is sent, it takes the inputs (previously unspent UTXOs) and creates new outputs, some of which may be unspent and available for use in future transactions.
  2. If you don’t have a single UTXO that is large enough to cover the transaction you want to make, you would need to use multiple UTXOs as inputs to cover the cost. This can be problematic because it can increase the transaction size and lead to higher fees. Additionally, using multiple UTXOs can also make it more difficult to determine the true sender and receiver of the transaction.
  3. When creating a bitcoin transaction, a wallet can specify the transaction fee by setting the fee rate in satoshis per byte (or a similar metric). This fee is paid to miners to incentivize them to add the transaction to the blockchain. Wallets usually provide users with options for different fee rates, which can affect the speed at which the transaction is confirmed.
  4. Transaction inputs and outputs can be used to increase privacy in a transaction by using a technique called CoinJoin. CoinJoin is a process by which multiple transactions are combined into a single transaction, making it more difficult to determine which inputs are associated with which outputs. This can help to obfuscate the sender and receiver of the transaction and increase the overall privacy of the transaction.
#6188
  1. Unspent Transaction Outputs (UTXOs) are the leftover amounts of bitcoin in a particular public address after a transaction has been completed. When bitcoins are sent from a wallet, the transaction takes the bitcoin inputs (UTXOs) from the sender’s wallet and creates new outputs (UTXOs) for the recipient’s wallet. The unspent amount is then sent back to the sender as a new UTXO. Each UTXO has a unique transaction ID and output index.
  2. If you don’t have any single UTXO that is large enough to cover for your transaction, then you would need to combine multiple UTXOs to cover the amount needed. This process is called “coin selection” and can be automated by the wallet or done manually by the user.
  3. When creating a transaction, a bitcoin wallet specifies the transaction fee by setting a fee rate in satoshis (the smallest unit of bitcoin) per byte of data in the transaction. The higher the fee rate, the faster the transaction will be processed by miners.
  4. Using the notion of transaction inputs and outputs to increase privacy in your transaction is known as coin mixing or coin shuffling. It involves combining multiple inputs from different sources and sending them to multiple outputs, making it harder for anyone to trace the transaction back to the original sender. Some wallets have built-in coin mixing features, while others require the use of third-party services.