UTXOs are unspent transactions. These are transaction of bitcoin sent to your wallet that are not sent from your wallet yet.
If the utxo is not enough then the transaction will not be constructed and sent
The wallet will specify the transaction fee by taking the inputs and subtracting the outputs.
Privacy could be increased by using several outputs. You could even output to your own address
1, the balance of previous inputs to a wallet that make up the balance available to spend.
2, the wallet can send two UTXO’s large enough to cover the transaction and return the excess less the fee to your wallet.
3, the fee is the difference between the UTXO minus amount being sent(output) as a payment.
4, use more than one address
• Describe what Unspent Transaction Outputs (UTXO) are.
o A UTXO specifies amount that have been sent to a specific addresses and a fee for the miners to process the transactions.
• What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
o The wallet will combine UTXOs until the sum is at least equal to the amount to be sent plus the transaction fee.
• How would a bitcoin wallet specify the transaction fee when creating a transaction?
o The fee is equal to the sum total of the output UTXOs minus the sum total of the input UTXOs.
• How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
o Each private key can create many public addresses. So, a wallet could generate a new public address for each UTXO it creates. The fact the addresses in the output UTXOs are different than those in the input UTXOs increases privacy.
UTXOs are transactions that you have received and that you can spend by using your Private key. Your wallet balance is total value of all UTXOs linked to your key.
It will merge with your other UTXO’s until you have enough funds for transaction. If you don’t have enough UTXO’s to cover your transaction, your transaction will be declined.
When creating a transaction, in some wallets, you can manually specify the fee in order to either increase (higher fee) or decrease (lower fee) priority or speed of processing of your transaction. Value of transaction fee equals to the difference in total value of the transaction inputs and transaction outputs.
All UTXO’s can be tracked and it’s very hard to keep your privacy once you use UTXO from exchange where you left your KYC. When receiving your UTXO’s, best practice is to use different address each time you make a transaction to your wallet, but once you spend your UTXO’s associated with your key you reveal its existence. If you really want to protect your privacy you can use CoinJoin service or Lightning network.
The entire current balance of the wallet is transacted, there is the amount sent, and what is left over is transacted as output back to the wallet as UTXOs (unspent outputs of the previous transaction)
The transaction is not dependant on the value of a single UTXO as it will sum all UTXO’s into a single value, transact out the value of amount to be sent to receiving wallet, and transact the remainder back into senders wallet.
If the sum of utxo’s is less than the amount to be sent (plus transaction fee), the transaction is declined.
The fee is calculated as the diiferance between inputs and outputs.
Use a different address for each receiving transaction.
Describe what Unspent Transaction Outputs (UTXO) are.
A UTXO is a transaction that has yet to be spent in any given wallet. In other words, it is the input of a transaction which only turns into an output upon spending.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Your wallet will calculate all the UTXOs that add up to the sum plus the associated fee for the transaction.
How would a bitcoin wallet specify the transaction fee when creating a transaction? The fee is the difference between the input and the output, it is never specified but implied in every transaction.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? Inputs and Outputs cannot reveal the private key of any transaction, ensuring that the holder of the private key remains private.
1- its the balance that shows in your walltet
2- its not possible to transact more than your utxo
3- fee is output - input. A wallet may suggest you a fee based on past transactions
4- you may transfer between your own wallets multiple times, so i gets harder and harder to look back into the transactions and figure who owns the private keys that received the transactions
1-Balance in wallet is the sum of all unspent transaction outputs.Its the sum of change in your wallet.
2-Transaction will not be confirmed and therefor not process
3-The transaction fee equals the Inputs-Outputs
There are ways of lowering your transaction fees although you may wait longer for confirmations.
4-By creating many outputs to multiple wallets privacy is increased.
Unspent Transaction Outputs are the sum of previous inputs made, it will show as your balance in your wallet. This balance is ready to be spent in a new transaction.
If your UTXOs are not enough to cover the transaction that your are about to construct, the nodes will detect that and decline the transaction from the blockchain, just like a double spender would want to reach consensus in that he has enough UTXOs but in fact he/she doesn’t, this will be detected and stopped by the nodes of the network.
It will check the blockchain in real time and calculate a transaction fee that will put the transaction high enough up in the list for miners to be confirmed in a suitable amount of time.
When initiating a transaction, you could send a fraction of the total sum of UTXOs in your wallet to the recipient and send the change to several different wallets that are owned by yourself. This makes it very complicated for eyes in the open world to track you and your transactions, increasing the overall privacy in your economic transactions.
UTXO is the balance of inputs you have in your wallet, coming from a previous transation, and are still available to spend.
if there is no UTXO with the conditions you need for the transaction, this new transaction is declined.
the transaction fee is the difference between the input and the output.
you can increase privacy by adding more output addresses, including to yourself.
2.If you don’t have any single UTXO that is large enough to cover a transaction, the transaction will not be validated. A person can use more than one UTXO to reach a certain amount to complete a transaction.
UTXOs are outputs form a transaction that are not themselves spent yet by being the input in a new transaction.
More than one UTXO will be combined to cover the transaction.
It will be equal to the input minus the output.
It would be possible to sent multiple outputs back to addresses under your control.