Homework on Bitcoin Transactions and UTXO - Questions

[Fabrice]

@realsloth

The wallet will send it to a bunch of nodes and they will reject it because that signature cannot authorize the amount.

You can combine multiple smaller utxo’s together to cover the amount if you don’t have any single UTXO that is large enough.

[Fabrice]

@Glenn_CostaRica

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Usually, the wallet wouldn’t let the transaction be signed and broadcasted; however, if, for some reason, the transaction is broadcasted, the rest of the nodes will ignore it since the sender does not have enough money in his/her UTXOs as to execute this transfer.

You can combine multiple smaller utxo’s together to cover the amount if you don’t have any single UTXO that is large enough.

[Fabrice]

@Niieells

If your UTXO isn’t large enough than the transaction would be rejected.

You can combine multiple smaller utxo’s together to cover the amount if you don’t have any single UTXO that is large enough.

[Fabrice]

@Nick_Carolin

The transaction would be rejected.

You can combine multiple smaller utxo’s together to cover the amount if you don’t have any single UTXO that is large enough.

[Fabrice]

@p2ray

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 validated by other nodes, so will be declined and then will not happen;

You can combine multiple smaller utxo’s together to cover the amount if you don’t have any single UTXO that is large enough.

[Fabrice]

@Coinhunter68

The transaction will fail

You can combine multiple smaller utxo’s together to cover the amount if you don’t have any single UTXO that is large enough.

[Glenn_CostaRica]

Goshhhh, I even feel ashamed !! Absolutely !! One of the basic things we learnt. I will add to my answer. I appreciate a lot how refined you are. Amazing here !! I love how much you attend each detail <3

[Glenn_CostaRica]

I JUST UPDATED MY ANSWER.
THANK YOU AGAIN, FABRICE @Fabrice

[Lucky_Mkosana]

1. UTXO is the value generated from an input to an output that hasn’t been spent yet. For example. A (input) sends 0.5BTC to B (output). B now can send 0.3 and 0.2 BTC to D. The 0.5BTC at B is an unspent transaction when it’s not yet sent to D.

2. The transaction will be declined.

3. The wallet will specify that the input needs to equal the output plus the fee.

4. Generating different output addresses will create and increase anonymity in the public ledger.

[tyrannosaurus_flex]

1. Unspent transaction outputs are basically your balance. They are funds that you have received.

2. The transaction would either be declined or more than one UTXO would be used to cover it.

3. The fee is input - output

4. You can use different addresses for different receiving transactions.

[Mauro]

@arod773

Q2: The transaction would be denied.

@hubitutl

It will fail because that results in it being regarded as invalid.

@rbrownlow

2. If you don’t have sufficient UTXOs to perform a transaction, your transaction will simply be ignored.

@AndreaLuigi

2. If there is not enough in your wallet the transaction will be declined

@lovreez

2. The transaction wouldnt go throught, it would be declined.

@cryp2

2. You cannot do any transaction

@Watchuku

2. The transaction would get declined.

@Lucky_Mkosana

2. The transaction will be declined.

@arod773 @hubitutl @rbrownlow @AndreaLuigi @lovreez @cryp2 @Watchuku @Lucky_Mkosana

Correct, but if there is multiple UTXO’s they could always be combined to create a large enough transaction.

[Mauro]

@homiejohn

4. From the outside looking in at inputs and outputs of transactions, because they are hashed, you cannot determine which output goes to which recipient. This function creates privacy in the transaction.

A hash of a block only tells us that there was work put in the network. The hash itself cannot help you to stay private. If I know what addresses you own I can track you regardless of the hash. In order for you to stay private you would want to create multiple outputs, in which I would no longer be aware if the outputs you made belong to you or to someone else anymore.

[Mauro]

@RustyGray

1. Your balance.
2. It will use more than one UTXO.
3. fee = input - output
4. Use more addresses.

@Mucha_Julius

• They are generated by inputs to your wallet.
• Transaction would fail.
• Tx fee=utxo output - utxo input.
• Distribute outputs to multiple addresses you may or may not control.

@Watchuku

1. Wallet balance.
2. The transaction would get declined.
3. Input minus output.
   4.Using different addresses.

I always recommend to try and answer the questions with as much details as you can. It will help you in the future if you have to ever revisit one of the terms or questions. On the other hand it always helps other users to see different explanations or things that they may have missed when learning.

[Mauro]

@cryp2

4. The transaction generated is hard to understand by human, only the person who transact will know the exact transaction.

You can always find a connection between a user and an address. Maybe they posted their own address at some point on the internet, indicating that they most probably own it. You can then track his transactions on the blockchain. The key point is that they can create multiple outputs to the point you are no longer sure if they spend it all or not. For all you know they could have send all the outputs back to themselves again to a series of new address.

[Mauro]

@Travis

3. The fee is calculated from the remainder of the output - the input

@tyrannosaurus_flex

3. The fee is input - output

@Travis @tyrannosaurus_flex

Correct. I would also like to add that it is important for the wallet to check the size of the current mempool. It would help it determine how much satoshi per byte is needed for you transaction to go through in the next block.

[Mauro]

@Glenn_CostaRica

Goshhhh, I even feel ashamed !! Absolutely !! One of the basic things we learnt. I will add to my answer. I appreciate a lot how refined you are. Amazing here !! I love how much you attend each detail <3

One small mistake. You have been doing pretty good from what I have seen.

[GarryY]

UTXO is the balance you can spend.
The transaction would be invalid unless you add another UTXO
The fee is the input minus the output
Use different addresses

[bpmtech87]

1 - amounts that previous transactions have sent to your wallet
2 - Wallet will look for additional UTXOs and use them as well
3 - It does not specifically specify. Is the diff of your inputs and outputs (which will also include an output for your change.
4 - Break up your outputs to many public keys?

[Travis]

My bad, I meant to put Input - Output. Thank you for that bit of extra info as well!!

[bsmccall]

yes! Noted. Thank you, Fabrice.