Thanks for the edification
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You can combine more utxo’s in the transaction inputs to cover the amount
- Available balance
- Transaction will be declined
- Check with blockchain what’s the most reasonable fee to get processed within a reasonably good time.
- Use multiple addresses/wallets.
Utxo’s are just batches of bitcoin that you have recieved to your addresses. If you got 2 payments of 0.3btc to 2 different bitcoin addresses that your Wallet (keys) control. You have 2 utxo’s of 0.3btc that you can use to transact witch. If you need to pay 0.5 btc, you don’t have a single UTXO to cover the transaction. So you can use 2 utxo’s of 0.3btc to cover the transaction, the change you can send back to yourself
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You can increase privacy by using more outputs. Because your wallet (keys) has many different addresses that you only know are all yours. So you can actually send to yourself without anyone knowing whose address it is.
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A utxo is a batch of bitcoins that was send to a bitcoin address associated with a public key. That your private key can unlock to send again
- Your balance left from a previous transaction.
- The wallet will combine UTXOs to cover the transaction.
- Input minus output.
- By using different addresses for receiving transactions.
Unspent transaction output are input that have not been spent. they are the balance of the wallet.
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The transaction will not go through, nodes won’t accept the block.
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the transaction is fee=input-output.
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It can improve privacy because you can send inputs to another address of yours in the wallet.
You can combine multiple smaller utxo’s together and send the change back to yourself
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A UTXO is the output of a previous transaction that the receiving wallet can use as input in future transactions. The sum of all available UTXOs make up the balance of the wallet.
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The wallet would aggregate several UTXOs until the required amount is reached. The difference of the sum of inputs and the amount required to cover the transaction (plus a transaction fee) will become an output to an address the wallet controls.
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Transaction fees are not explicitly specified. They are the difference between the sum of inputs and the sum of outputs. In order to increase the transaction fee the wallet would have to decrease the amount that would is output to one of its addresses.
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It cannot be said for sure which addresses belong to which person. There may be several outputs in a transaction that are all controlled by the same person or group of people.
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UTXOs are transaction Outputs - meaning that they are the amount sent to some recipient - based on one or more transactions inputs. A UTXO can also go back to yourself - actually at least one UTXO often will, because the difference between the amount you pay, and all the inputs summed together must go back to yourself, as the rules of a transaction is, that sum of inputs equal sum of outputs (plus transaction fees)
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I guess you can not construct a transaction then? Your wallet will tell you insufficient funds
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It doesn’t. The fee is auto calculated, based on the difference between sum of all inputs and sum of all UTXOs - the fee is the remainder between the two
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Not sure…Maybe by specifying a lot of UTXOs where many of them goes back to yourself. This way it is difficult to tell who the real recipient is
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- They are outputs that your wallet has received. (your balance)
- You will combine another utxo to the transaction and send the remaining balance less fees back to yourself in another utxo.
- By looking at the previous fees from other recent transactions to set reasonable fee.
- By using different addresses for each transaction.
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXO’s derive from the inputs used to create a transaction. if a user wanted to spend bit coin then their wallet would query the blockchain as to how may UTXO were available to their particular private key. If available the blockchain allows them to be used as an input as a transaction to somebody else hence creating another UTXO and they repeat the process.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet would pull in different input amounts in order to create a UTXO large enough to cover your transaction providing there are enough inputs with enough BTC to cover. otherwise you simply wouldn’t be able to complete the transaction.
How would a bitcoin wallet specify the transaction fee when creating a transaction
The fee is generally calculated from the input minus the output. The bitcoin wallet normally take a look at previous block fees around your amount to create a fee that is reasonable that gets you on a block quickly although some wallets do let you create your own fee which could get your transaction processed and confirmed quicker.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
From a single input you could create two outputs, One that sends the transaction amount and one that is an output linked to an address that you own. This way it is harder to tell which is the actual transaction and there are multiple addresses involved making it hard to attribute to a specific user.
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Ahhh… I see…
Ok. Thanks. 
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UTXOs are the funds that are available to use by the recipient. After confirmation, the inputs of the TX are available for the user to spend in the form of the UTXO which will become the inputs for the next TX.
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^edit^ In the event that one does not have a singe UTXO that is large enough to cover the TX, the network will look to other available UTXOs to complete the TX. In the event that not enough UTXOs are available to complete the TX, the TX will not be propagated to the network.
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A BTC wallet finds the transaction fee of the TX by subtracting the output from the input.
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To increase the privacy of the TX one would utilize multiple addresses for both inputs and outputs when moving funds.
- UTXOs are basically funds in a wallet that can be spent. They correspond with the amount of inputs received by a particular wallet.
- The transaction wouldn’t be accepted as valid by the nodes or otherwise the same wallet won’t build the transaction.
- The transaction fee is implied since it’s the difference between inputs and outputs
- having numerous inputs and outputs makes it difficult to understand by simply reading the blockchain who send money to who and which is a transaction to another address of the same person and which is an actual transaction.
- Describe what Unspent Transaction Outputs (UTXO) are.
The unspent output from bitcoin transactions. (Each UTXO represents a chain of ownership implemented as a chain of Digital Signatures where the owner signs a message transferring ownership of their UTXO to the receiver’s Public Key.)
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction would not process.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
Thea wallet checks the blockchain for the appropriate fee or some wallets enable the owner to specify the fee.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Outputs can be sent to multiple users and back to the user as well. I assume more output transactions would make tracking more difficult thereby increasing the level of privacy. Or you can send the utxo to a different blockchain built for privacy that obfuscates transaction data. The bitcoin would have to be exchanged for equal value and converted into the privacy blockchains native currency. That currency could be used then converted back to the users regular bitcoin wallet on the bitcoin blockchain whenever he wants it back.
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Unspent transaction outputs are outputs of a transaction sent to a particular bitcoin address/wallet that have not yet been used as an input for a transaction to another bitcoin address/wallet. Transaction outputs are sent to a bitcoin address meaning these outputs can only be spent by the private key of the wallet containing that bitcoin address. These transactions remain unspent and remain assigned to a particular private key until they are used as inputs by the wallet to create a new transaction.
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Your wallet will choose which OTXOs to use and construct a transaction with multiple UTXOs (which means it will be constructed with multiple inputs). If the total of these inputs exceeds the the desired output to a wallet then the difference is sent to a different address of the same wallet the owner has sent the transaction from minus the tx fee.
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A bitcoin wallet would specify the transaction fee as fee = input - output. There is no need to specify the fee in any other way.
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My current understanding is that you are able to increase privacy in your transaction by having multiple bitcoin addresses. You can make a payment to more than one bitcoin address in a single transaction therefore you can send a transaction to another bitcoin address you own the private key for whilst simultaneously making a payment to bitcoin address belonging to someone else this will mean when the transaction is being viewed on the blockchain by an individual they have no way of knowing if one of the addresses recieving a transaction belongs to you.
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UTXO’s are what is added together to get your account balance.
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Multiple UTXO’s will be added together in one transaction and you will receive the “change” also in that same transaction. If all of your UTXO’s are not enough to cover transaction amount, the transaction will be denied.
3.UTXO minus UTXO input=fee.
4.You could send multiple outputs to what looks like a bunch of different wallets but in reality only one of them was another person and the rest were back to yourself.
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UTXO’s are your inputs that you can use to send BTC to other wallets across the network.
If you don’t have a single UTXO to cover your tx, multiple UTXO’s will be used and you will receive “change” back to your wallet for the remainder.
The wallet would look at the blockchain to see what the current average rate of fees is to make sure your tx gets into the blocks in a reasonable amount of time.
Using different btc addresses for each transaction assists in more anonymity.
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