1.The UTXO corresponds to the previous imputs sent to the wallet , they respresent the balance of the transaction and theu the total utxos corresponds to the wallets balance.
2.If you dont have enough utxo the transaction wil be rejected
3. The wallet usually specify the correct fee from the blockchain , however it is done on the base rule of Fee= Imput - output
4- All the informartions can be tracked on the block exporer hence an increased of transparency in the network
- Describe what Unspent Transaction Outputs (UTXO) are.
A UTXO is an output of bitcoin (from another wallet address) that has been sent to your address. The sum of all your UTXOs is the amount of bitcoin in that wallet address.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction would be rejected by the network.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
By analysing the previous transaction fees to determine what the current “going rate” for TX fees are. It’s simply a best guess.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
by increasing the number of inputs/outputs you can obfuscate the transaction and make a more complex web of TX history to have to analyse (in an audit), but chain analysis software can successfully decipher this and make sense of it.
Hello Fabrice!
Thank you! That makes sense re: single UTXO’s vs. multiple!!
As for the question about inputs and outputs increasing transaction privacy, I was saying that there’s no way to tell who is sending and who is receiving certain transactions since they are all lumped together, therefore increasing privacy. But I suppose the answer is just all about your private key (which only you have access to) holding the essential information others can’t see.
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- A UTXO is the product of creating a transaction. So whatever is the results of the input going to whatever outputs
- If you have any additional UTXOs in your wallet they would combine until they equal or are more than equal to the total of the output amount + fees.
- It is usually determined by what was recently the transaction fee but as a base it is the difference between the input and the output used to create the transaction.
- There could be many inputs from many different private keys that a single person owns and outputs could be to many different public addresses.
- A UTXO’s are the unspent funds that were previously an output of a transaction and will remain so until they become an input for a new transaction
- The transaction will not happen
- TX = input - output (based on what it sees appropriate from previous fees present on the blockchain to get your transaction on to the blockchain in a reasonable timeframe)
- It is not clear whether the output of the transaction is to another person or to the same person, therefore increasing anonymity
Hi there!! But 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?
Describe what Unspent Transaction Outputs (UTXO) are.
From what i understand, a utxo is balance on my wallet, entire outputs or fractional outputs.
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
from what i have gathered, if i dont have a single utxo big enough to handle the output, it will gather another from me and as many as needed to complete the transaction, it must equal to or greater than the output. there is not fractional utxo, the entire amount must be spent and the left over change becomes a new utxo that comes back to me.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
it would seem to me, that the fee is generated by the difference between the input and the output of the transaction.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
I would assume that in order to maintain privacy i could have multiple wallets and have inputs broken up into those multiple wallets, or have trusted recipients to help fractionalize the output.
correct me if i’m wrong, thanks.
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Yes, you can see all the information in a block explorer, but what can you do with inputs and outputs be arranged to increase privacy?
And how is the fee calculated, based on inputs and outputs?
Maybe we can say that the UTXO is an amount that a certain wallet can spent. If you send 1BTC to a friend, his address will now have a UTXO of 1 BTC, which he can later use to build a transaction.
Hi @wafflemakr! Transaction with one UTXO of 1 BTC will go through and second UTXO will be separated for 2 UTXO of 0.5 BTC one will go to your friend the second 0.5 BTC will go to your wallet address. Yes it is possible.
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Hi @wafflemakr! Yes, exactly as @Lukasz stated, since you have 2 BTC available, 1.5 BTC will be sent to your friend and the remainder will be sent to your wallet address minus any transaction fees.
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Describe what Unspent Transaction Outputs (UTXO) are.
Answer: These are transactions your recieved (bitcoin) but have not spent. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Answer: The blockchain would reject your intended transaction. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Answer: It chooses what it calculates will give your a reasonably fast transaction and a reasonable rate. If you are unsatisfied you can manually change the fee. You can see the fee as the difference between the input (larger number) and the output (smaller number) -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Answer: Keep spending amounts low in various wallets. When spending from a given wallet spend the entire amount such that part goes to the intended receiver and part goes to another wallet of your own as change. This reduces exposure by creating a new address.
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Transactions recieved that can be spended.
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You would have to use more than 1 UTXO.
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It will calculate the Fee by substracting the Outpout from the Input.
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By making use of a different address every time you make a transaction to recieve the rest of funds.
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calculated based on satoshis per byte fees accepted and included in previous blocks. The current fee will be based on your current transaction size in bytes compared to previous block fees per byte. So if a 400 byte sized TX cost 0.00002 btc, then your TX size of say 800 bytes should get successfully mined for a fee of 0.00004 btc.
- UTXOs are the remaining balance in your wallet.
- The sum of other small UTXOs are used to make large transactions and your wallet will be credited to you after the transaction fees are deducted.
- The wallet specifies the fee by taking all inputs and subtracting the output.
- By using multiple address to send the transaction because names are not assigned to an address
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- UTXOs are the balance in your wallet. When someone sends you money, you now have a UTXO.
Your wallet controls your private key. The blockchain tracks UTXOs. The wallet asks the blockchain which UTXOs can this private key spend. The blockchain then sends back a list of unspent tx outputs. The wallet adds up these unspent tx outputs giving you your balance. - Then no transaction takes place. Get more UTXO.
- Many wallets calculate the fee for you. The fee is the input - the output.
- You can have multiple outputs to multiple addresses for different amounts including sending a portion back to an address you control therefore making it harder to determine what the net amount sent to another party was or the address of that party.
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Sum of all inputs (transaction that were sent to the wallet) that are still not spent.
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All UTXOs in output will be added and necessary amount of BTC will be sent to the receiver. Rest of it will be sended back. If sum of all UTXOs is not enough transaction will not go through.
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Wallet will check previous fees of the transactions in blockchain and will recommend most efficient one.
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Always generate a new address. Also it is possible to use more than one address in one transaction on both sides (output & input).
1 - Describe what Unspent Transaction Outputs (UTXO) are.
The unspent transaction outputs are the funds that you have received from another transaction. These outputs become the inputs for a future transaction that you might make. Your private key gives you the ability to use these unspent funds.
2 - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Multiple UTXOs can be combined as multiple inputs to a new transaction. You would need to find enough UTXOs to at least cover the amount you wish to send and the fee you would like to use to send it.
3 - How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet would find enough UXTOs as inputs, specify the recipients as outputs, add any change as an extra output back to you and an amount to cover the fee. The Fee is calculated as the difference between the total amount being sent minus the total value of the transaction outputs (including the change back to you).
4 - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Different addresses should be used to receive money from different sources to make it harder to trace trails of payments to you. You can also send smaller amounts to multiple addresses belonging to the same recipient, this makes it harder to find the exact amount of a single transaction. You could possibly also send multiple amounts back to different addresses you own to obfuscate the ‘change’ portion.
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Hi there!! But what if I have 3 UTXO of 1 BTC each, and I wish to send a transaction of 1.5 BTC to a friend? Is that possible?
Felipe.