Homework on Bitcoin Transactions and UTXO - Questions

[IAmBean]

@ivan

Describe what Unspent Transaction Outputs (UTXO) are.

UTXOs are inbound transactions that are assigned to your private key that have not yet been spent/not yet output.

@ivan

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

The transaction would fail.

@ivan

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

Your wallet should look at the blockchain’s last transaction fee and suggest for you the best fee for you to get your transaction on the blockchain fastest and cheapest.

@ivan

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

Because your total inputs (UTXO) need to be equal to your total output within a transaction, you can split each of your outputs to be the same amount and send to different addresses (some you own, some to the payee) so that this transaction is obscured. I suppose that this is the basic strategy of coin mixers out there.

[Sebastian]

1. UTXO’s are transactions which have been sent to a particular address and they represent the total balance that the recipient can send.

2. The persons wallet will not allow for a transaction to be made if the required balance isn’t there

3. The BTC wallet will scan the blockchain and look at the previous transaction fees and then choose one which would give access to the blockchain reasonably quickly.

4. Send to multiple output addresses and one of them could be the user itself.

[rontrader9]

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

The combinations of unassigned coins in your hardware wallet 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?

Two or more UTXO’s are combined to create a large enough UTXO

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

It searches the blockchain for the best reasonable fee and suggests it to you.

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

By using multiple addresses controlled by the same person

[IZUMI]

1. Unspent transactions outputs are the bitcoins transaction were sent to someone and transaction is completed but the receivers have not yet put any transactions to spend.

2. In order to pay the amount, several UTXOs can be made at the same time.

3.Bitcoin wallet will refer to blockchain to find fees. Fee is UTXO minus input .

4. With blockchain, the bitcoin address to receive coins can be generated every time. It is different from Bank accounts that keep the same address and IBAN. Blockchain make it more difficult to trace the ctransactions.

[Trinity]

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXO is the unspend resourses that you have in your wallet.

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

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   Fee is specified by a suggestions of the blockchain trought the wallet.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   By using a hardware wallet. It generates different address for every transaction.

[Edu_H79]

1. Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs represent the saldo in your wallet

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If multiple UTXOs would need to be combined, if this is not possible, the transaction is rejected.

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

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Use multiple UTXOs to send bitcoin to myself via other addresses I control.

[jelucamur]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   They are the amount received into a wallet from someone else. They cannot be summed on the blockchain, hence the need for a wallet to show you how much is available to spend
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   The wallet shows the aggregate sum of UTXO’s received and will provide the wallet owner with visibility as to whether they can pay the total sum required
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The fee is suggested by the blockchain based on average throughput times. You can alter this to a higher amount if you want to entice miners to accept your transaction sooner
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction
   Transactions can go to multiple wallet addresses, therefore it is difficult to know who owns each address, it is possible to send your own money to a different wallet address you own and that will aid privacy

[Maris]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXOs are all the crypto transactions you have received, but haven’t spent yet. The sum of UTXOs is the balance of your wallet.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   In this case your wallet would use more than one UTXO, but it would send you back the change with the same transaction.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The wallet would specify the amount you would send to other wallets and the change it would send back to itself, the rest would be used for the fee. The wallet helps you to determine what a reasonable fee would be in the current moment based on the few previous transactions in the network.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Wallets contain multiple addresses and it is pretty impossible from outside to tell which transaction went to recipient and which one went back to the sender. It could be that all transactions went to addresses that the sender controls. I would use multiple addresses and would keep different amounts in them. I would never send everything back to a single wallet, because then it would be clear to people from the outside that all the addresses are most likely controlled by the same person.

[RhoadsNRoses82]

1. UTXO’s are outputs from previous transactions, that came from other people paying you, which you have not spent yet.

2. In this case, the system would add several UTXOs together so that you have enough to cover your payment.

3. The wallet looks at all the data regarding transaction fees, and how quickly transactions get confirmed relative to the size of the fee. It then selects a fee that it thinks is the most reasonable balance for you at the moment. You can modify this fee if you want to get your transaction in the block more quickly.

4. The outputs of a transaction typically contain a portion that is sent back to an address that you yourself own. This makes it harder to tell what your payment was vs what funds you sent back to yourself.

[Drift]

Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXOs are basically outputs from one address to a new address becoming inputs for the new address which will be able to spend on new transactions.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   You cannot spend more than what you have. Can’t eat two apples if you only have one. Lol

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   Subtracting the output from the input.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Sending multiple transactions to multiple addresses that you control.

[migmed]

1. There are bassically the transaction outputs that a wallet can send (or in other words, the money that the wallet has).
2. The wallet will figure it out to sum two ore more of yours UXTOs until they cover your transaction.
3. It subtracts the output from the input. To specifically decide a fee, it query to the blockchain’s currently average fee.
4. Sending part of the total input to yourself (to an adress that your private key control).

[Rava06]

1.) UTXO are basically Bitcoin you’ve received but haven’t spent yet.

2.) If it wasn’t large enough to cover the transaction it wouldn’t be sent to begin with, the wallet would calculate that it’s not enough and not send it.

3.) The fee is calculated by subtracting the input from the output.

4.) Privacy can be increased by simply sending multiple transactions to different wallets, from the outside it’s impossible to tell who’s sending to whom.

[Janine]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   Unspent Transactions Outputs are transactions that you receive and are in your wallet. you have not send them out / spend them. They are - for your wallet, considered input into your wallet-

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 able to be executed if there is not enough in your wallet for the transaction

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   a transaction fee is specified as fee. it is a separate address apart from the one of the transaction . input = output + TX fee

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Use a different address for the transaction

[Mauro]

@Yir

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

@LoneWolf_Moonboy

2. you would be declined, essentially.

@Storm.chain

2. The transaction would not be confirmed

@angieww

2. If there isnt a single UTXO large enough to cover the transaction it will be rejected.

@virgin

2. The transaction will be declined.

@odesseus011

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

@Danny_Bradshaw

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

@CaliforniaDreamer

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
2 the transaction won’t happen - it will not be approved

@rSatch

2. that transaction would invalid

@sneakyturtle

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

Then the miners will reject your transaction from being processed.

@Luche

2. If you don’t have a UTXO large enough to cover transaction then transaction is not culminated; it doesn’t go through.

@Katsu

2. the transaction can’t be finalized

@yycshane

2. The transaction would be invalid and rejected

@CryptoMindset

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

@IAmBean

The transaction would fail.

@Sebastian

2. The persons wallet will not allow for a transaction to be made if the required balance isn’t there

@Trinity

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

@Drift

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   You cannot spend more than what you have. Can’t eat two apples if you only have one. Lol

@Rava06

2.) If it wasn’t large enough to cover the transaction it wouldn’t be sent to begin with, the wallet would calculate that it’s not enough and not send it.

@Janine

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 able to be executed if there is not enough in your wallet for the transaction

There is a possibility that the address can have multiple UTXO’s. When we combined them, the amount must be large enough to make the transaction happen. Otherwise just like you guys said, the transaction would be declined/not constructed/not signed/not confirmed.

[Mauro]

@Yir

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You keep your private key secure and safe.

That is a great advice for security. However to achieve more privacy we would want to use several outputs when doing a transaction. This confuses the person who is looking at you transaction, as they are no longer sure which outputs you still own and which you don’t.

[Mauro]

@LoneWolf_Moonboy

3. input minus the output. the sum left would be the fee.

@Storm.chain

3. The fee is calculated from the remainder of inputs minus the outputs

@enrico

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

@ingute1986

3. Transaction fee is calculated by input minus output.

@virgin

3. By substracting the input from the output.

@York

3. It would take the difference between the STXI and UTXO as the fee.
   Fee=input - output

@CaliforniaDreamer

How would a bitcoin wallet specify the transaction fee when creating a transaction?
3 transaction fees are not specified - but mathematically they are the balance between the inputs and outputs of a transaction.

@rSatch

3. input - output = fee

@Luche

3. A transaction fee is the input minus the output. In other words the input consists of the output plus the transaction fees.

@Katsu

3. The fees are the difference between inputs and outputs

@yycshane

3. total inputs minus outputs, but some wallets allow user to specify fee

@cryptocrom

3. The transaction fee is specified by the difference of the total UTXO amount and the transaction amount. For example 10 mBTC is used to purchase 8mBTC worth of goods or services, the difference of 2mBTC would be the amount paid on fees.

@CryptoMindset

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
Substracting the input by the output.

@Edu_H79

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

@Drift

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   Subtracting the output from the input.

@Rava06

3.) The fee is calculated by subtracting the input from the output.

@Janine

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   a transaction fee is specified as fee. it is a separate address apart from the one of the transaction . input = output + TX fee

@clkyong

3. If the total of the outputs is less than the total of inputs, it is a given that the difference between the inputs and outputs will equate to the transaction fee.

Yes. But how does the wallet set the fee? Its important to note that the wallet specify the fee by the unit we call “satoshi per byte”

Here is an interesting read: Satoshi per Byte

[Mauro]

No problem. Keep up the great work.

[Mauro]

@sahowe1

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

The wallet decides on a fee - the more the fee to quicker the transaction will be added.

But how? How does the wallet decide the fee?

[Mauro]

@PAT22

2, The input will be created from more than one transaction

The transaction will be created from more than one input

You switched the sides.

[Mauro]

Wallets like Ledger or Exodus, generate a serious of private keys from one seed. That’s why some people have multiple hardware devices.