Yes, there is a fee of satoshis per byte in the bitcoin network, and you should also know the correct value to send as fee. But, in this case, we were looking for a relation between inputs and ouputs, as the fee = inputs - outputs. If you use a 1 BTC UTXO and send 0.999 BTC as output, then you are telling the miner that you are offering 0.001 BTC as fee.
Let me know if this makes sense!
Felipe.
Here you are talking about the wallet’s balance, but the UTXO is actually each of these transactions that are sent to your wallet and that you haven’t use them yet!
The UTXO (Unspent Transaction Outputs) is the balance each wallet has.
Having zero UTXO it is like having zero balance in the wallet. The transaction can’t be done. The nodes will check if it is valid or not. As a result this transaction will be denied.
Input minus Output= Transaction fee.
The sender (Input) could be controlling a different address in the output. it is impossible to determine which of the output belong to the the sender. “Same owner with a different address”. This is how provides more privacy.
Yes, right. Thanks!
To be sure. Is it right, that if i have only one UTXO it will equal sum of all inputs minus TX fee (UTXO = ∑inputs - fee)?
UTXOs are inputs from other addresses or keys for transactions you have received money from.
If no single UTXO is large enough to cover a transaction then 2 or more UTXOs are used for the transaction.
The fee can be calculated by taking the input and subtracting the output from it.
It is impossible to determine which of the outputs belongs to the sender and which don’t.
An Unspent Transaction Output is the output received from an input, before being used as an input for a further transaction.
The transaction would be invalid with a single UTXO this is too small to cover the transaction. The solution is to add an additional UTXO with a value large enough to cover the transaction.
A wallet will propose a suggested fee based on your transaction size that will get you on to the blockchain quickly. To calculate the fee of a transaction you calculate the input-output.
You can use multiple output addresses, of which can be your own, and this is practically untraceable back to the private key/owner.
1.Describe what Unspent Transcation Outputs [UTXO] are.
A UTXO is the balance of Bitcoin/Token received in your wallet and as yet unspent. It can be seen as the change left over after you have made a transaction.
2.What would happen if you don’t have any single UTXO that is large enough to cover your transaction?
The transaction would not take place. If attempted it would be rejected by the protocol.
3.How would a bitcoin wallet specify the transaction fee when creating a transaction?
The transaction fee is the difference between the transaction input figure and the transaction output figure. It is implied but not seen.
4.How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You could use many different input/output addresses to make transaction more difficult to read.
UTXOs are the transaction outputs that are linked to a private key and are not yet spent. They’re what your wallet uses as input when constructing a transaction.
You would have to use enough UTXOs to cover for your transaction and send back the change to yourself.
It would look at the latest fees on the blockchain and determine how much your fee should be to be able to enter a block reasonably fast.
By sending your input or inputs to various outputs, some of which are addresses controlled by yourself, because it wouldn’t be possible to tell which are yours and which not.
UTXO
UTXO are responsible for beginning and ending each transaction. They are the unspent outputs from bitcoin transactions that you have received but haven’t spent yet i.e. the amount that is available to be spent/transfered.
No transaction.
The bitcoin transaction fee calculation is based on the input and output and the size of the transaction.
Use multiple addresses for sending and receiving the transfers. The more outputs you create the more difficult it is for third parties to follow the transactions and interpret the data.
Unspent Transaction Outputs are transactions received from other users. They become your inputs for your next transaction but remain as a UTXO until then.
You need to use several UTXO’s, sending your own wallet the surplus, while also accounting for the TX fee.
It automatically chooses an amount that it decides will adequately pay of a miner so you can get a spot on the next block in the chain.
The listed input and outputs show no name, and each is unique, so all personal information is saved.
There is always a chance you could combine multiple UTXO’s’ to make the transaction happen. Otherwise the transaction will not happen just like you said.
Exactly. And the wallet specifies this by setting a unit of measurement called “satoshi per byte”.
I am a bit confused about your answer. The wallet will combine multiple UTXO’s, if it has any, to make the transaction happen. Otherwise the transaction will be invalid. 
Correct. But lets assume you send your bitcoins from the old address (which I know) to the new one. I would still be able to figure that you own the new address as well. To avoid this you would want to send your bitcoins to many address that you own/don’t own. This would confuse me as I would no longer be sure which of does addresses you still own and which you don’t.
Looks all good to me. Keep up the great work!
The question didn’t imply that you don’t have any UTXO’s, bur rather that you have one, but it is not large enough to do a transaction. Let’s say you have 2 UTXO’s: 0.5btc and 0.4btc. You want to send a transaction of 0.8btc. Can you do it?