Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#1267

Homework on Bitcoin Transactions and UTXO - Questions

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

UTXO is the balance of transactions you’ve received and can be spent.

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

Your wallet will add other utxos that you own until you have enough to complete the transaction. It the sum isn’t big enough, the transaction will be declined.

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

The wallet recommends a fee based on current transaction fees on the blockchain. You can see the fee by subtracting the input from the output.

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

You can split up the transaction by having multiple public/private keys pairs.

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#1268

“The Transaction fee in BTC does not matter to the miner. satoshi/Byte matters to him”-(https://metamug.com/article/security/bitcoin-transaction-fee-satoshi-per-byte.html)

)_Yes the wallet sets the fee

#1269
  1. The available balance in the wallet.
  2. You do not be able to send the transaction
  3. Wallet calculate the fee based on the network fees paid to do the transaction in a reasonable time. Also checking the balance minus the output UTXO.
  4. By using different address when receiving a transaction.
#1270
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    The overall balance 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 would not be processed.
    3.How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Fee = Input - Output
  3. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    diversifying transactions through different addresses.
#1271
  1. They are previous inputs designated to you wallet
  2. The wallet will use a number of previous UTXOs, if available, to cover your desired transaction.
  3. The wallet does not specifically specify the fee, the fee is implied as transaction + fee.
  4. i can make many transactions simultaneously and it will be hard to track what goes where and to whom
#1272

UTXO are input transactions sent to a wallet

The wallet will find 2 UTXOs where the sum exceed the amount. It will then send them and send the change back to you as a new UTXO

It is the sum of the total UTXOs less the outputs.

By sending the outputs to multip

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#1273

1.UTXO is the result of a previous transaction that reflects the balance of bitcoins that we have not spent.
2. Transaction it isn’t possible,
3.Inputs-Out put
4.new address any transaction, multiple addresses, HD wallet

#1274
  1. It is received transaction that has not yet been spent.
  2. It wouldn’t go through if you don’t have enough UTXO.
  3. The wallet would calculate and propose a fee based on previous fees, and by taking the input minus the output
  4. You can send the transactions to many different wallets, making it harder to track
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#1275
  1. UTXO are transactions that you receive and now you can spend.
  2. The transaction will be cancelled.
  3. Can be verified by adding all the inputs - the outputs.
  4. No one knows who the address’s belong to and when a large volume of outputs are seen being sent to different wallets it’s hard to track all the transactions.
#1276
  1. It stands for unspent transaction output, it represents the chain of ownership through the blockchain & allows the wallet to calculate your balance.
  2. There must be enough UTXOs to cover the transaction whether it be one or several combined together. If there is not then the wallet will calculate that there is not a sufficient balance for the transaction.
  3. The transaction fee is calculated by subtracting the inputs from the outputs of a transaction. A bitcoin wallet will specify the transaction fee depending on the hashrate of the network and the size/type of transaction that you are creating.
  4. All transactions are permanent on the public ledger after enough verifications have occurred for decentralized crypto assets such as Bitcoin. Creating more inputs and outputs can make it harder to trace but from my understanding it is still possible.
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#1277
  1. UTXOs are unspent transaction outputs. Basically they are balances associated to your address that you have not spent yet.
  2. If a single UTXO cannot cover what you are trying to spend, your wallet will look for other UTXOs and add them together to complete the transaction value. If there are no other UTXOs the transaction will not be processed.
  3. The wallet will analyze the previous x # of block’s transaction fees and propose what a successful transaction fee should be to incentivise miners to complete your transaction.
  4. To increase security you can create multiple outputs or send your ballance to a new BTC address.
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#1278

1
UTXO are the balance left in your wallet that it keeps track of and can also be the unspent outputs of the previous transaction.

2
It would use more than one utxo.

3
The wallet negotiates the fee from previous history from the blockchain of fees, or some wallets let you choose a high, medium or low fee depending on the speed you want to send.

4
You can generate new addresses to send the change to for added privacy.

#1279

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    A UTXO is a an indication that another entity (wallet, individual, institution) has sent your wallet cryptocurrency funds.

  2. 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 accepted by any nodes on the network and will be discarded

How would a bitcoin wallet specify the transaction fee when creating a transaction?
the fee is not explicitly stated, but is rather the difference between the UTXO and the funds expended in the transaction

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

Each transaction could be facilitated by a different address.

#1280
  1. UTXO are the amounts your private keys have access to on the blockchain
  2. the wallet can gather all the UTXO you have until you have more than enough for the transaction and create another UTXO to give back to you as change.
  3. By looking at the previous transactions on the blockchain to see what is an average and acceptible amount to get you onto the blockchain quickly.
  4. when all the UTXOs you have access to are spent and the output UTXO are generated, people dont know which one was the trasaction and which UTXO was returned back to the same private keys
#1281

They are unspent outputs of the previous transaction and are used to begin and end the transaction.

It would be deemed as invalid as you would not have enouch “currency” to perform the transaction

It would look at recent/previous transactions in the blockchain and choose the “best” one. Or you can specify (if the wallet allows) the fee that you desire (I would presume from the collection of previous fees i.e. not any amount you desire).

They are sent to an address which translates to an entity (the entity being a person and or computer) which are encoded and hide the identity of that person and or computer.

#1282
  1. UTXOs are the wallet balance.
  2. If the sum of UTXOs is large enough, then it combines them.
  3. It finds information about previous transaction fees and uses them as a basis.
  4. The outputs can be sent to your own but different public adress.
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#1283

QNS 1. Describe what Unspent Transaction Outputs (UTXO) are.
Unspent Transaction Outputs (UTXO) will be the remaining balance in your wallet.

QNS 2. 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 cover and pay for the transaction.

QNS 3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
It will minus away the UTXO output from the total UTXO of the wallet from the blockchain.

QNS 4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
The transaction inputs and outputs are represented in cryptographic letters and we can make use of different wallet addresses to increase privacy.

#1284
  1. UTXOs are the inputs that we receive in our wallet and are free to be spent/send to someone else
  2. transaction would not be processed. It would be rejected by the network
  3. It would make it so its reasonably quick to be processed, because the highest transaction fee gets processed first.
  4. Anonymity is in core of all transactions
#1285

Bitcoin and UTXO Transaction Task - Questions

Describe what unspent transaction outflows (UTXO).

They are the record of outflows of unspent transactions and are used to validate transactions and confirm address balances.

What if you do not have a single UTXO that is large enough to cover your transaction?

If I do not have a single unique UTXO, you must use the ones that are necessary for the transaction, if they are not enough, the transaction will be rejected, if they are more than what is needed then must be shipped and then a return of the surplus.

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

The transaction commission rate is determined by the entries minus the exits, The commission is not something fixed, nor explicitly imposed, it can vary, the wallet performs the calculation but it can also be done manually. The size of the transaction influences the cost of the commission.

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

mix different inputs and outputs in one transaction.

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#1286

  1. UTXOs are all transaction outputs a private key is able to spend as input. Can be either from own address or other addresses.

  2. You would need to sum up multiple UTXOs and transact any remainder that is not fee back to yourself as new UTXOs

  3. Pick the UTXOs that would result in input = output + fee

  4. I would use a different address that I control to transact back to myself

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