Hi, thank you for your feedback.
1.You would send available UTXO’s to a friend with the balance less fee’s sent back to an address you control.
2. Input less output = transaction fee
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- They are the outputs of previous transactions that were sent to your wallet.
- Your wallet will add up several utxo’s so you can make the transaction. Other wise the transaction would get rejected.
- The wallet reads the blockchain for previous transaction fees, the fees are whats left over of the inputs once the outputs have been paid.
- Many outputs can be generated, you can control many addresses. Its impossible to deduce who controls these addresses from the output.
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*Unspent Transaction Output or UTXOs are unspent Bitcoin. The amount that is in your wallet that is available for spending. A UTXO represents that output of a transaction that is available as an input for a future transaction. Smaller UTXOs can be combined for larger transactions and transaction fee. Any remaining Bitcoin will be sent to your wallet as change in the form of a new UTXO.
*If you do not have a combined amount of UTXOs to cover the transaction and fees then the transaction will not be validated. Your Bitcoin wallet recommends a transaction fee that is serviceable at that time. However, if you have an urgent transaction you can increase the service fee for miners to validate the transaction to have it added to the Blockchain faster.
*I am having a hard time with answering this question, because the transparency of the ledger for tracing to verify transactions. I’ve read that some wallets offer grouping transactions together to create a larger transaction, and many answers in the forum suggest creating different addresses each time you do a transaction. However, my understanding is very limited at the moment.
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Increasing the amount of inputs and ouputs should increase your privacy. As I would no longer be sure which ones you still own and which ones you don’t. The further this goes the more unsure I would be. 
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1Total BTC on your private key.
2.Cannot make the transaction.
3.Your wallet shows you the necessary transaction fee in order to accomplish your tx.
4.You can send from your wallet to another address that belongs to you too.
There is always a possibility you could combine multiple UTXO’s in order to complete the transaction. Otherwise yout transaction would be invalid just like you said.
That is true. After the wallet calculated the fee we can see it as the difference between total input - total output = fee.
Correct. But you would want to make a higher number of outputs in order to confuse the person tracking you.
Describe what Unspent Transaction Outputs (UTXO) are.
They are in sum your balance on Bitcoin, that you are to spend
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction could not be delivered because of insufficient funds.
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Fee= Input - Output
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You could send the UTXOs couple times to some wallets that you own.
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If you happen to have more than one UTXO you would be able to combine them in order to make the transaction large enough. Otherwise the transaction would be invalid.
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Hello!
The input always = the output + the transaction fee
Example: if the total input is 1BTC and the output is 0.9BTC transaction fee will be 0.1
1BTC=0.9BTC+0.1BTC
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Exactly. I would like to add that the wallet determines the fee using a unit of measurement called “satoshu per byte”. Feel free to research more about it, its quite interesting and it will enable you to one day set your own custom fees if you wish.
That’s it. Keep up the great work. 
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Describe what Unspent Transaction Outputs (UTXO) are.
It is the left over amount change that receive from each transaction. -
What would happen if you don"t have any single UTXO that is large enough to cover for your transaction?
Add UTXO to input to be able to cover the transaction. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet constract the transaction decide which input and ouput to create and calculate the fee. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Using Private key.
Hi there! Yes, you can get a new UTXO from the “change” when you send BTC, but also they can be created when someone sends BTC to your address.
And what is the relationship between inputs, outputs and fees?
You will use the private key to sign the transaction, but how can you arrange your inputs and outputs so you can get more privacy?
- Describe what Unspent Transaction Outputs (UTXO) are: It is my ballance in my wallet.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? The transaction is invalid, or, my wallet will add as much of my UTXO which are smaller amount, to cover the amount of required transaction.
- How would a bitcoin wallet specify the transaction fee when creating a transaction? Imput minus output.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? Use input bigger than (output+fee) so that there is remaining output travelling inkognito back to my wallet.
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Hi, UTXO can be created when someome sends BTC to me.
If inputs = outputs + TX fee. inputs is what’s in the wallet and outputs is sending out the TX. The difference of input and output is equals to TX fee.
By identiying the transactions where it came from and combine and locate them into 1 input and send to specify output.
Private key and the public key must match.
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- left over sums of transactions you keep. Like change.
- It would fail
- It will do it by math. It will select the “best” situation it deems correct enough.
- There is not external way of determining where it went, Wallet uses a temporary id/signature
Homework on Bitcoin Transactions and UTXO - Questions
- Describe what Unspent Transaction Outputs (UTXO) are.
UTXO are unspent transaction outputs that have been received by you from others or from private keys controlled by you (represent bitcoin available to you to spend) - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction cannot be completed, will fail - How would a bitcoin wallet specify the transaction fee when creating a transaction?
the transaction fee is the difference between the UTXO inputs and the outputs from the transaction - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
you would specify different amounts for the input and the outputs i.e. use one input to generate multiple outputs of different amounts to wallets controlled by yourself
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- Describe what Unspent Transaction Outputs (UTXO) are. The balance remaining in a wallet.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? First the blockchain would deny the transaction…then the wallet would attempt to use multiple UTXO’s to cover the transaction and the difference would be sent back to your wallet - minus the transaction fees
- How would a bitcoin wallet specify the transaction fee when creating a transaction? I know that some wallets allow you to choose your fee to make the hashing more attractive. I know that Input’s = outputs + transactions fee’s. If the wallet doesn’t let you specify the fee I’m not sure how the fee is calculated?
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? By avoiding patterns such as using the same sending and receiving addresses you are practicing greater privacy as there is no way to know who the addresses belong to.
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Besides this, you could also specify multiple outputs, sending BTC to other wallets you control, different from the originating one!
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Besides the change, you can also receive BTC from someone else, which is also a UTXO.
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