Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#884

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    This is the input(s) coming into the wallet.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    The wallet will make a sum with all existing UTXO and if all UTXO is enough to cover the transaction can be done. It’s impossible to shop with an empty wallet

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The wallet will make the best choice to take the best fee to get a quick transaction. The transaction fee will be not specified.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    All transaction are a digital sign
    Its not possible to find out the private key on the network

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#885
  1. They are outputs of previous transactions that had your address as an input.
  2. Always all UTXOs are summoned so it is not a single that is used. If all UTXOs together are enough the transaction is made, if they are not enough, transaction can’t be made.
  3. UTXO minus UTXO input = fee
  4. You could send some of UTXOs in transaction to your other address.
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#886

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO are transactions that were sent to your bitcoin address and haven’t been spent after that by you.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    If you have 2 or more UTXO that can together cover the amount you want to send, your wallet will spend those UTXO. The needed amount will be sent to the target address and the rest minus transaction fee will be sent to one of your own addresses.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    It would take the sent amount and subtract the received amount. This difference is the transaction fee, which is not specified on the blockchain.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    You can increase the number of outputs in your transaction. Also, you can send money to yourself on a new address and the network cannot tell it’s still in your possession.

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#887
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are unspent outputs of the previous transactions and represent what is available to be 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 add all your UTXOs together and if you had enough to cover the transaction, the transaction would be processed. Otherwise, the transaction would be rejected.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The bitcoin wallet recommends a reasonable fee for the transaction based upon recent transaction fees on the blockchain to enable your transaction to be picked up in a reasonable amount of time. The fee is then derived from the sum of all UTXO inputs less the outputs. Note: Some wallets allow you to specify transaction fees for your transactions.
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Since a transaction can have multiple inputs and outputs you can increase the privacy of your transactions by using a new wallet address for each transaction, and also for returning any change. You can also break up the change amount into multiple addresses so it looks like there is no change returned and all outputs were spent.
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#888

1.UTO’s are the unspent outputs of the previous transaction it is then us to create a new complete output transaction.
2. The transaction will not be valid and the transaction will decline. it will not be accepted by the minors.
3. The blockchain calculates the fee by taking the reminder for the inputs minus the output of the transaction.
4. The blockchain allows the inputs to be channel/divided into multiple outputs or addresses. It only makes it hard for the addresses does not have personally information.

#889

1- UTXO are unused incoming transactions. BTC that has been paid to you and saved in your wallet for future use (spending)

2- when your wallet constructs the transaction it will combine UTXO’s to allow you to have enough to cover the transaction and the fee.

3- Input minus Output equals the Fee… The wallet will construct the transaction, then look at the current Blockchain transactions and calculate a fee which will get your transaction on to the Blockchain fast enough. Some wallets allow you to select a Fee, which may result in longer transaction time.

4- Combining multiple inputs to creat several outputs provides anonymity, as the inputs and outputs can only be identified by the PK holder. As transactions are constantly combined and then parsed over and over, tracking of these transactions become nearly impossible to track…

ALTHOUGH, I’ve heard that BTC can be tracked. Is that true?

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#890

Describe what Unspent Transaction Outputs (UTXO) are.
Within the bitcoin blockchain ledger there are no wallets at the protocol layer. Bitcoins are stored on the ledger as a list of unspent transactions (UTXOs). Each UTXO contains a quantity and criteria for spending. TXs are generated by consuming existing UTXOs and producing new UTXOs. Referenced article by Jordan Clifford HERE

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If any single UTXO is not large enough to cover a given TX then the given TX will not be verified or be allowed to occur, unless combined with other UTXO.

How would a bitcoin wallet specify the transaction fee when creating a transaction?
A bitcoin wallet specifies the transaction fee when creating a transaction by identifying the difference between the total inputs and outputs of a given TX. Inputs = Outputs + TX Fee.

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Each UTXO is encrypted and combined with other UTXOs making it incredibly difficult to match output values with a specific bitcoin wallet.

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#891
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • UTXO’s are previous transactions sent to your wallet address.
  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 executed.
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • Some wallets will recommend a fee so that your transaction will be picked up reasonably fast, in other wallets you can adjust it the fee yourself.
  • tx fee = input - output
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • By having more than one addresses controlled by you.
  • By having more than one outputs.
  • No personal information is connected to your tx ID or wallet address.
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#892

UTXO is the term to describe the leftovers after a transaction has been completed and before they are re-spent.

The transaction would fail.

It is essentially the input minus the output.

You can use more addresses in the transactions. Potentially more of your own on the output.

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#893

  1. UTXO is the total amount of BTC not spent linked to your Wallet based on your Private Key.

  2. INPUT = OUTPUT + Fee. You could combine others UXTO linked to your Private Key. The amount that exceed the transaction goes to your wallet as an output. If no other UXTO is available, the transaction will be denied

  3. Fee = INPUT – OUTPUT. The fee is implied rather than specified.

  4. You could use multiple output addresses and since addresses are not linked to any person, it keeps the privacy.

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#894
  1. UTXO-unspent output of the previous transaction.
  2. TX would be invalid.
    3.FEE= input-output of the transaction.
    4.by using different addresses.
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#895

  1. UTXOs are outputs of past transactions which the wallet holder did not spent. All UTXOs combined are the balance of the wallet.

  2. All UTXOs combined will cover for the transaction+fees.

  3. All inputs- all outputs=fee

  4. use more outputs to different adresses that you hold (without kyc)

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#896
  • Describe what Unspent Transaction Outputs (UTXO) are.

UTXO = inputs that you have received but not spent

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

UTXOs are combined and if that total does not cover the transaction will be rejected

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

Transaction fee = input - output

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

Relates to the use of multiple addresses to make it infeasible to determine what you are receiving back

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#897
  1. UTXO’s are unspent wallet inputs- the sum is the wallet balance.
  2. Other UTXO’s are added until the total is large enough.
  3. The fee is determined by the Bitcoin network. UTXO output minus UTXO input = fee
  4. Use many inputs and outputs.
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#898
  1. Describe what Unspent Transaction Outputs (UTXO) are.outputs that are unspent or money waiting to be spent
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? your wallet adds up your utxos and sends out the total and the difference is sent back to you
  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? Multiple inputs and outputs
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#899
  1. Whole or fractional outputs of a transaction
  2. transaction would be invalid
  3. The fee is calculated from the remainder of all inputs minus the outputs of a transaction
  4. Make use of different addresses when you want to receive something
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#900

  1. UTXO are basically your BTC, your private wallet will ask the blockchain for your UTXO when you are trying to send your BTC to someone, your wallet will also calculate your balance by adding up your UTXO’s on the blockchain

  2. The transaction would be declined

  3. Transaction fee is input minus output

  4. Use many inputs and outputs

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#901

1.) UTXOs are the unspent bitcoin that has been sent to your address, from the perspective of the sending address. From the perspective of the receiving address, they are inputs. When you create a new transaction, UTXOs are the bitcoin you’re sending to another address.

2.) If you don’t have any single UTXO large enough, then your wallet would use as many as necessary. If there is not enough in total then the transaction would be rejected.

3.) The transaction fee can be figured by subtracting the output from the input. Most wallets will suggest a fee that is approximately average in order to get the attention of miners. But you can raise the priority of a transaction by submitting a higher fee.

4.) The notion of transaction inputs and outputs can be used to increase privacy because the output has to show the total amount of bitcoin at that address going somewhere, spectators don’t know which addresses are controlled by the sender and therefore they don’t know how much money is being returned to the sender and how much is being spent with another entity.

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#902
  1. UTXO is BTC that you have received and not yet spent
  2. You would not be able to do the transaction
  3. A wallet will specify the UTXO and output amount towards the purchase and the balance sent back to your wallet. The difference between the output towards the purchase and the amount sent back to your wallet will be the fee.
  4. You could send to the UTXO in your wallet to a couple of other wallets controlled by yourself
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#903

Answer 1:
Each value received and not yet spend are UTXO.

Answer 2:
You can use more than one UTXO as input for a transaction.

Answer 3:
By subtracting the output value from the input value.

Answer 4:
Having several input’s and output’s can make the transaction obscure.

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