Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#643

  1. UTXOs are the input coming into your wallet from past transactions. Your wallet collects the inputs adding the sum of all and giving you a wallet balance.

  2. The transaction wouldn’t go through. You would need more utxo transaction.

  3. input- output. My wallet will calculate the fee.

  4. You could have multiple address keys for input receiving providing more anonymity which can later be swept into wallet you want.

#644
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    It’s basically the balance of the wallet. The remaining UTXO’s or previous inputs to the wallet that have not been spent.
  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 sent.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It would check the blockchain for previous fees and create a similar one, its possible with some wallets to select the fee.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Use multiple addresses and increase number of outputs.
#645

  1. UTXOs are inputs to a wallet, the wallet then tells you what your balance is, and when you create a new transaction they are no longer UTXOs.

  2. It would sum up all UTXOs to be able to make the transaction. If you only have one single UTXO that is not enough the transaction would be declined.

  3. It would recommend a fee based on current and previous transaction fees that would get you into the blockchain fast enough.

  4. By having several addresses, when you increase the number of outputs to those addresses nobody knows that they all belong to you.

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#646

  1. UTXO’s are transactions created by a bitcoin wallet that have not yet been registered into the blockchain

  2. You will not be able to perform this transaction

  3. It is the difference between input and output

  4. Because yo can send (part of) a transaction to yourself, and it will be unknow which part of the transaction that will be.

#647

  • Describe what Unspent Transaction Outputs (UTXO) are.
    Its a transaction that is incoming to me that i haven’t spent yet

  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The system would use two or more to cover it and would pay the other part and give mw change (minus fees)

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It can ask me to specify or uses the information from the network to assume a current fee that gets me into the block relatively quickly

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    I don’t know. Maybe use of different wallets. Maybe relying on the encryption to protect it.

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#648
  1. UTXO’s are transaction received and the combined total of these will determine your balance; potential spend.
  2. Your transaction will not be verified.
  3. Input - Output = Fee
  4. Have input and output transactions all from different addresses.

Question: In the video, @ivan demonstrated a fee of 0.1BTC. Are you able to determine the transaction fee to be greater? If yes, naturally miners will verify your UTXO faster than others as they stand to gain, so is this not a way of increasing transaction security?

#649
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are an output of the previous transaction and not yet spend.
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?

The transaction will not be confirmed/executed.

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

The difference between inputs and outputs is the fee.

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

Use a different wallet addresses.

#650

Unspent transaction outputs are transactions you have received and can be spent. If you don’t have any single UTXOs large enough to cover a transaction more UTXOs will be made to cover and send the rest back to you. Bitcoin wallet would specify the transaction fee when creating a transaction by { F(x)=x+FEE output } the fee is calculated by your wallet and sometimes you can choose a fee depending on speed from inside your wallet.You could use the transaction inputs and outputs to increase privacy in transactions by creating more transactions.

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#651
  1. If you receive 0.5 BTC + 0.1 BTC and have to pay 0.3 BTC the unspent transaction will be 0.3 BTC. The change
    2)The transaction cant happen
  2. From previous transactions on the blockchain.
    You can choose a faster one but will pay a higher fee
  3. no need all transactions are private , as only I have the private key
#652
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO’s are Outputs of former transactions and can therefore used as inputs for new transactions.

2.What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
You would have to use another one to have at least what is needed for output

3.How would a bitcoin wallet specify the transaction fee when creating a transaction?
Transaction Input value - transaction output value

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

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#653

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Money given to you that you haven’t spent yet. I have 5 dollars. I give my daughter 5 dollars (transaction). My daughter hasn’t spent the 5 dollars yet but probably soon will on stuff 12 year olds spend money on.

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

Your wallet would broadcast out to various neighboring nodes on the blockchain to see if there were any additional UTXO’s designated for it. They will check. If there are, then the wallet could use the multiple UTXO’s to cover the transaction. If no, the transaction is voided.

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

Inputs = outputs + transaction fee. The short answer is your wallet does this automatically for you. It proposes a fee that is likely to be accepted by the miners. In the video example, it’s like having two 5 dollar bills for something that costs $7. Tax is 50 cents. You get back $2.50.

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

Use different addresses for receiving.

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#654

  • Describe what Unspent Transaction Outputs (UTXO) are.
    These are inputs that has not been spent yet. If I sent Ivan 0,5BTC and he does nothing with these 0,5BTC this is simply an input for his wallet. When Ivan spends this money it wil not be a UTXO anymore. But his outgoing transaction does.

  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The transaction will not happen. input has to be the same as output. Always.

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    input minus output = fees.

  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Use Monero :slight_smile: or any other privacy coin.
    And you can send funds to another adress that’s part of the same wallet you operate.

#655
  • Describe what Unspent Transaction Outputs (UTXO) are. >> transactions which are not spend again
  • 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 send the transaction
  • How would a bitcoin wallet specify the transaction fee when creating a transaction? >> out of the sum of the UTXOS
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

if you use a new address for every new transaction

#656 
Describe what Unspent Transaction Outputs (UTXO) are.

Basically, UTXO’s is what you have available to spend. Blockchain keeps records of the UTXO’s received by your private key address.

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

Another UTXO is used in addition, to cover the remaining portion of the transaction.

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

By subtraction; input minus the output.

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

By creating an input for more than one address resulting in multiple outputs.

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#657

Describe what Unspent Transaction Outputs (UTXO) are:

A1) They are the outputs of transactions which have not been used in another transaction.

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

A2) Then your transaction will become invalid

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

A3) The wallet app sets the fee , or the remainder of the sum is the fee amount.

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

A4) Send outputs to more than one wallet.

#658
  1. Describe what Unspent Transaction Outputs (UTXO) are.

UTXO’s or unspent transaction outputs are are balances from a transaction that can be spent in as inputs in a future transaction.

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

The transaction would not occur. It would be invalid.

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

The transaction fee is calculated or specified by the difference of the Input and the output.

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

Send input to several different outputs which would make it difficult to retrace.

#659
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    Is the balance left from a transaction.
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The blockchain will sum all your UTXO’s that shall be added, to validate the transaction. If UTXO sum is less then the transaction shall be declined.
  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?
    This can be done by using multiple input and output addresses.
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#660

Describe what Unspent Transaction Outputs (UTXO).
Answer: Output Transactions that are received and not spend. In other words the sum of all UTXO is your balance.

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? -
Answer: The transactions input would contain multiple UTXO inputs to cover the transactions

  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Answer: The wallet analyzing the blockchain to determine a recommended transaction fee to ensure the transaction get picked up by a miner.
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Answer: Using a new addresses for your output transactions (pay yourself)
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#661
  1. A UTXO is the received funds that haven’t been spent
  2. The wallet would specify multiple UTXOs.
  3. The wallet looks for the fees it believes to be correct or you can do it yourself in some wallets to get yours picked up faster or slower if you want to save money
  4. Generate a new address each time
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#662
  1. Unspent amounts of bitcoin that you have.
    2 The transaction would declined
    3 Input-output
  2. make few different outputs sending money to yourself. The notion prevents the system from knowing where the outputs are sent.