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Describe what Unspent Transaction Outputs (UTXO) are. The unspent transactions are the BTC that my wallet private keys lets me spend. It is the BTC that I have mined or has previously been sent to me.
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What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? Thats Ok my wallet will just combine several UTXO that add up to the required amount plus the transaction fee. If all my UTXO are less than that required for the output and fee then I need to get more BTC.
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How would a bitcoin wallet specify the transaction fee when creating a transaction? The wallet does not specifically state the fee, but it is simply the outputs minus the inputs so its easy to calculate. I think some wallets allow you to specify it as an advanced feature. By making the fee too small it might not get picked up by any miners and it could languish in the mem pool.
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How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? You could make your transaction output to many addresses. In this way someone looking at the transaction would not be able to tell if the recepients were multiple people or just one person with multiple addresses (or some combination of the two), or perhaps you sent it back to yourself to multiple wallets you control.
Yes it would be possible to send if tx does not contain any fees, as 0.1BTC of 10 UTXO adds up to 1 BTC.
- UTXO’s are change from previous blockchain transactions
2)Wallet adds UTXO’s from all the previous transactions to combine it into one value to balance the funds. If there is not enough the transaction will be denied. - The BTC wallet recommends the most reasonable fee possible based on precedent from previous transactions.
- The more outputs in a transaction the harder it is to trace the inputs and track the wallet address.
The question is saying, what if you don’t have any ‘single’ utxo that covers the transaction.
So you can combine multiple smaller utxo’s together to cover the transaction.
Don’t fully understand what you mean by your question. Your Wallet has a history tab, where every in and outgoing transaction is listed. Only your private keys know wich transactions belong to you
Yes, most wallets are HD wallets (hierarchical deterministic) so your bip39 mnemonic seed (12 or more words) , can create lots of different public / private keys that your Wallet can control. Each time you receive a new payment, it will generate a new bitcoin address. This is much better for privacy because all your bitcoin is on different addresses, only you with your private keys can know wich addresses belong to you
The question :
Hi there! And how is the fee related to the inputs and outputs of the transaction?
The more inputs/outputs are used for the transaction the more data is needed and therefore fees are higher.
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Describe what Unspent Transaction Outputs (UTXO) are.
The UTXO are received amount that still not spend -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Wallet will do a summary of all UTXO in the wallet, if the total of UTXO’s is larger enough to cover the transaction then this last one will be processed, If the total UTXO` in the wallet are lower than my transaction then this one will not be processed by the wallet for reason of unsuffient fund. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
There are wallets that checking the blockchain and decide the perfect fee that will speed up the transaction, other wallets allow us to choose the fee from Low, Recommended and high. In general a TX fee = TX Input - TX Output -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
The exist of many inputs and outputs addresses who makes the privacy of the transaction
Yes, it’s all in sats per byte
Yes, later, while gazing at blocks I noticed that too.
I’m looking forward to learn about mining at next.
Thank you for feedback @wafflemakr 
I try to write good answers, I need to be informed and pointed.
[quote=“ivan, post:1, topic:8436”]
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Describe what Unspent Transaction Outputs (UTXO) are.
A UTXO is an unspent transaction until it is spent -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
It would sit in you wallet as an UTXO until further UTXO’s are added to your wallet, then you would be able to do a Tx. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
A wallet would calculate on the blockchain what the best fee is at present. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
In a TX you could spend an amount to another wallet address or more that you own and not have the UTXO amount left over after output and tx fees coming back to your original wallet address.
Homework on Bitcoin Transactions and UTXO - Questions
- Describe what Unspent Transaction Outputs (UTXO) are.
They are the unspent transaction outputs, which give then the sum of your balance. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Then it will combine them with the other UTXO’s on your wallet and return the rest to your wallet. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
The diffrence between the input and output of a transaction are the transaction fees - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Have a lot of different adresses and split the transactions up so that it gets very hard to trace.
What if I have 2 UTXO of 1 BTC each, and I wish to send a transaction of 1.5 BTC to a friend? Is that possible?
Yes, this is possible. 2 UTXO’s of 1 BTC each will give you a total of 2 BTC. To make a transaction of 1.5 BTC to a friend, your wallet, once having queried the block chain to confirm the 2 UTXO’s and add the amounts available, will construct the output transaction of 1.5 BTC to the friend. The available amount was 2 BTC. All UTXO’s must be utilized. The remaining .5 BTC will be utilized for the fee, which the wallet can propose from previous fees paid on the blockchain. Any amount remaining after the fee will be sent as an additional output to you via a private key that pertains to you. Similar to change being received from overpaying on an item that you are purchasing.
[quote=“ivan, post:1, topic:8436”]
- Describe what Unspent Transaction Outputs (UTXO) are.
- UTXOs are unspent transactions/funds and remain unspent until a party uses them. They are funds that are sent to someone but that person is not really credited with the amount of the transaction until they construct their own transaction to send funds to someone else. Once you send, they become spent TXs for you and UTXOs for someone else (and yourself too).
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
- It is combined with another UTXOs to equal more than enough funds and then sent; and the remainder UTXO is sent back to me.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
- It is shown as the input minus the output
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
- There can be multiple (inputs and) outputs so it is difficult to see how much has been sent to a third party and how much back to me.
Wow! I could not have said it better! Well done!! 
Felipe.
Sorry, my bad. Just wanted to check if you knew you could add multiple UTXOs 
Great response!!! 
- Describe what Unspent Transaction Outputs (UTXO) are.
A: Unspent Transaction Outputs or UTXOs serve as globally-accessible evidence that you have Bitcoin in your digital wallet. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
A: The wallet combines all unspent UTXO’s together. If the amount is enough with all UTXO’s when they are collectively added together the transaction is processed. If not the transaction would be declined. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
A: Fee is implied from Input-Output = Fee - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
A:Because an individual can use many different addresses to spend their UTXO and one of them could be an address sent to themselves and that is hard to determine.
generate a new address
- Describe what Unspent Transaction Outputs (UTXO) are.
Blockchain tracks UTXO (those with are unspent). Determinate wallet balance.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Transaction will be declined, will succeed only if UTXO is large enough to cover transaction.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
Transaction fee is implied based on leftover inputs after outputs are taken.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Choosing many outputs with real recipient would make tracking transaction more difficult and provide more privacy.
Choosing different output addresses will make it hard to tell with one of them goes back to you.
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The Unspent Transaction Outputs is the balance of your wallet. This is what we would refer to as the ‘‘bitcoin’’. You can have many different UTXO’s, but in the end the wallet tallies them up and you see the total balance of your wallet.
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If the UTXO isn’t big enough to cover the transaction it will be declined. Just like a debit card would be decline to not have a sufficient funds, the people verifying transactions on the blockchain will have kept track over who has which UTXO’s and if it doesn’t add up to the history of the wallet, then there is no way that alle the miners and verifiers will allow the transaction to get accepted. However there are many UTXO’s in a wallet, therefore they tally up the different ones. If all the UTXO’s in a wallet are not enough to cover the transaction it will again be declined.
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The Transaction fee is the difference between the inputs and the outputs.
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If you use multiple outputs it would be hard to track who you are sending to as there are no personal information linked to the addresses.