Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#965
  1. The wallet balance that is unspent yet.
  2. Transaction decline. It will not confirm.
  3. The difference remaining between Inputs - Outputs.
  4. Multiple output addresses.
#966

1.It is an unspent transaction you have received on other words the fond balance in your wallet.

2.It will be declined if you don’t have the necessary fonds to creat the transaction.

  1. The wallet checks out all input minus all outputs and adjust the fee.

  2. You can make many output transactions even to your own input. Anonymously without anyone knowing the only the private key owner.

#967

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The UTXO is what is available on the blockchain ledger for a particular private key to spend. If somebody were to send .1 btc to your public address what you would receive on the blockchain is a UTXO for .1 btc. When we spend we are spending our available UTXO’s.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    In the case there is not a single UTXO large enough to cover a transaction then multiple UTXO’s would be combined to cover the transaction. The remaining less fees would then be sent back as a UTXO to an address linked to the private key of our wallet.
    Inputs = Outputs + fees

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Some wallets give us the ability to choose the fee amount we wish to spend. Other Wallets will use an average of recent fees to determine the fee to pay for the transaction to be added to the block in reasonable time.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    The transaction inputs and outputs add to privacy in the sense that there is no way of truly knowing which outputs of the transaction are a UTXO going to the payee and which output is being routed back as a UTXO to an address attached to the private key of the wallet.

#968

  1. UTXOs are the incoming funds that went out form the sender’s wallet and that can be converted in a spent transaction output.

  2. The transaction won’t be constructed as there are not enough funds.

  3. Some bitcoin wallets let you choose the transaction fee based on the transaction speed. While other wallets will just check the latest blockchain transactions and will suggest a transaction fee with a resonably high transaction speed.

  4. The output can be sent to the sender’s different wallet as transactions and wallets are completely anonymous.

#969

UTXO are wallet balance

Transaction would not happen.

Balance minus fee minus what is spend and the rest of the balance send back to wallet.

By owning multiple wallets,addresses and sending UTXO among them.

#970

  1. UTXO is crypto that is sent from one wallet to another, and in turn have not been sent anywhere else yet. All incoming transactions to a wallet are UTXO’s, until it is sent elsewhere.

  2. Your wallet will combine other UTXO’s until the sum is large enough to send, any amount greater than what you are trying to send will be redirected back to your wallet as another UTXO. If sum of all UTXO’s is not enough to make transaction, it will not execute.

  3. It would check the network to see whats available, and make the transaction fast enough, and the fee is based on that.

  4. To make it more private, you can direct the unused UTXO’s to go to a different wallet that you control, instead of back to original wallet.

#971

  1. UTXOs are all the transaction outputs that are pointed to particular adress and basically add up to the wallet “balance” available to spend. Until they are used for another transaction as inputs to send the funds to someone else. Then theese stop being UTXOs, they start being inputs of the new tx and outputs of new transaction become new UTXO that belong to another wallet.

  2. if I have more UTXOs that are large enough when combined, then I would have to spend them all. That means I would have to (wallet will have to) pick them all as the inputs and create outputs in such way that part of the amount goes to recipient and the rest (the change) goes back to me (less the tx fee).

  3. bitcoin wallet would query blockchain for current tx fee amounts and tx confirmation times and propose the fee itself in a way so the confirmation time is within reasonable limits.

  4. I am not sure I understand the question … is the answer supposed to be that more outputs you have, more difficult is it to breach the privacy ?

#972

to my point 2 I atually have 2 questions :

  1. if you have a lot of available UTXOs to your wallet and want to make a transaction - do you have to spend them all or only those that will add up enough to the amount combined? Can some UTXOs stay there available for the next time I want to make a transaction?

  2. when wallet creates a transaction and there is a change on one of the outputs, is the change directed back to the original bitcoin adress or is it directed to new adress under my control?

does anyone know? Thanks a lot

#973

These are just payments that you recived but haven’t been spend right now.

The wallet will work out which UTXOs it can use for the transaction as inputs. In case the total value is higher that the total Output value another UTXO will be added to the transaction targeting your wallet again.

The feed are just the difference of all input transactions sum compared to the output transactions sum

The blockchain itself is full transparent to anybody, meaning that finally there is no privacy. We call this pseudo-privacy since with big data techniques it is possible to determine which addresses might belong to you. What you can do is to always use new addresses and onfuscate the data. Imagine it as creating noise to make it more difficult to conclude which addresses belong to the same owner.

The best you can do is to use it for illegal activities. This incentivices local authorities to find the missing puzzle parts and reconstruct the full history. The blockchain is very helpfull in this case since it stores all transaction very secure and accurate. In case you get into legal problems you can still still argue that the transactions in the blockchain might be wrong :slight_smile:

#974
  1. They are the sum of transactions made to your wallet.
  2. your transaction would be declined.
  3. The fee is the input minus the output.
  4. Use different addresses.
#975

All UTXO combined are equal of a balance of a wallet. Basically its value left after all previous transactions.
The wallet would use multiple UTXO (as long as there is more) to have equal or more than the value needed for transaction. These would became the inputs of a transaction and outputs would be the payment to the “vendor”, fee for confirming the transaction and any leftovers sent to my original address or any other address I choose.
Usually the wallet looks back to the previous transactions fees and tries to choose a similar value to make sure that the transaction would be mined.
As a third party just observing a random or suspicious transaction we would not be able to tell from who all inputs came (as long as we wasn´t participants of any of them or had a knowledge who was, we can see only an address) nor to who are all outputs heading to or which value of the output is actually the transaction value.

#976

Homework on Bitcoin Transactions and UTXO - Questions

  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • summation of unspent transaction that your wallet keeps track of.
  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
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • wallet checks the blockchain and figures out the correct fee or you can purpose on some wallets.
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
  • using many inputs and outputs
#977
  1. Describe what Unspent Transaction Outputs (UTXO) are.
  • All your addresses added up to create your current useable balance.
  1. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
  • declined
  1. How would a bitcoin wallet specify the transaction fee when creating a transaction?
  • syncing with the correct block height it will give suggested gas fee generally
  1. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    utilizing the encryption built into them can have many transaction leap frogging around to obfuscate as well as using shielded z2z addresses
#978

  1. UTXO is kind of like when multiple people send you money—this money is sort of laying around waiting for you to make a transaction

  2. declined due insufficient funds to make the transaction

  3. Input = transaction fee + output; the transaction fee is not specified but implied.

  4. a transaction can use multiple inputs and output from various addresses

#979
  1. All inputs you receive and which you haven’t spent yet.
  2. The transaction would be invalid. Your wallet would sum up all the UTXOs to a total amount and if it’s sufficent the transaction will be executed. The remaing amount will be sent back to you.
  3. Depending on the wallet you would get a proposal about the amount of the fee to get you into the blockchain as fast as possible.
  4. Bitcoins can be sent to multiple recipients simultaneously as well as to oneself
#980
  1. UTXOs are Unspent transaction outputs. They are amounts of money that are usable only by the person controlling the private key associated to that transaction.

2)In the instance you dont have a single UTXO which is large enough to complete a transaction, you would create a transaction with multiple inputs by concatenating your existing UTXOs and send the funds to two different outputs, the recipient (the amount of the purchase) and yourself (the change from the total amount sent).

3)The transaction fee is based on the difference between the input minus the output. The wallet can also offer fees at lesser amounts but at slower speeds or even custom amounts.

4)This can be achieved by sending the remaining amount to another personal account aka a change address, separate to the input address given at the start of the transaction.

#981

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    A UTXO is a verified amount received in a wallet, and is available for spending.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    Then multiple UTXOs will be used to cover the transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The bitcoin wallet will automatically calculate the transaction fee by using the difference between the input & the output.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    Different addresses are generated for the sending and receiving parties of each transaction.

#982

A UTXO is an unspent transaction that your wallet has received, but you have yet to spend.

Your wallet will combine your UTXOs and if you have a balance large enough to cover the transaction- output, plus fees, then the transaction will be accepted.

A bitcoin wallet will research recent blockchain transactions and propose a reasonable fee.

One can increase their privacy by having multiple output addresses. This increases the difficulty of tracking if you the funds were all sent to others, if some funds went to others and some sent to another address in your possession or most came back to you in multiple addresses you own and a small amount went to a different individual.

#983

hello,
1) UTXO’s are the unspent outputs of previous transactions.
2) You would have to use multiple UTXO’s to cover the transaction and the fee or the transaction will not go through.
3) the wallet calculates the fee by looking at the blockchain and picking the best fee to get you into the blockchain fast enough, although so wallets let you pick the fee yourself.
4) you could increase privacy in your transactions by breaking up the transactions and controlling multiple output addresses.

#984

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    available balance on your wallet based on all inputs.

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

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Fee = input - output

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By using multiple wallets.