- Utxo - basically it is a balance on your wallet
- The transition will not happen
- The wallet will determine fee for you. Sometimes wallet gives option to choose what fee to pay based on previous and current transactions
- You can create many addresses and send transitions to any of them. It will be harder to trace which address is yours
- Describe what Unspent Transaction Outputs (UTXO) are.
UTXO stands for “Unspent Transaction Output”. UTXOs in a wallet must match the inputs. They will become outputs when inserted in a block.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet could add other UTXOs to get to the total amount. If doesn´t, the transaction will not take place until you have enough funds.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
Input - Output = Tx fee.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Changing the amount of every output compared to the previous inputs.
Japan is a beautiful country.
- They are the total unspent transaction output in the wallet balance.
2)The transaction would not occur as it would be seen as invalid.
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It is calculated by subtracting the outputs of a transaction from the remaining inputs.
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I would use different addresses for added security.
I wish I could travel more and visit Japan one day 
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- UTXOs are unspent transactions that are tracked by wallets.
- You use multiple UTXO’s for your transaction. If there is an overpayment you will receive the difference back as an output of the transaction.
- Wallets look at the network and propose fee based on the transactions.
4.By sending inputs received to a different wallet addresses.
Homework on Bitcoin Transaction and UTXO - Answers
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UTXO is unspent outputs from a previous transaction.
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If I do not have enough UTXO for a transaction, it would be declined.
3.Bitcoin wallet would specify a transaction by subtracting the input and output, which then would equal the fee.
- I can have different addresses and outputs coming from one input.
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are effectively output transactions that have been sent to someone, but have not been used in another subsequent transaction yet. UTXOs are how the bitcoin network keeps track of how much bitcoin someone has. The network does not actually tally the total bitcoin that a single private key holder owns. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
You can use multiple UTXOs to make sure you can cover your transaction + transaction fees. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
Most wallets will check the network and suggest a fee based on the recent transaction fees. The transaction fee is effectively the Input minus output. You can manually update the fee to be more or less, and this could result in a faster or slower transaction fee. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
If you increase the number of outputs of a transaction, it becomes harder to track how much was actually spent on a transaction vs. returned to the previous owner. Transactions in general are hard to track because no personal information is provided.
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UTXO is received transaction in a wallet that has not been spent yet
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Use other UTXOs to meet the requested transaction value
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Fee is specified by the net remained value in of the total transaction value
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To send other UTXOs to the your another wallet when an transaction to 3rd party is executed.
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An unspent transaction output is the balance of the wallet leaving the wallet.
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The transaction would be declined if the UTXO isn’t large enough to cover the transaction.
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The wallet automatically calculates a fee. It is found from subtracting output from input.
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One input results in 2 or more outputs and the inputs are old outputs from previous transactions.
The balance of the wallet
denial of transaction
Thewallet calculates the fee
You can use mulitple addresses
- Describe what Unspent Transaction Outputs (UTXO) are.
These are the all transaction that you have received to your wallet. - What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Wallet can’t make the transaction. - How would a bitcoin wallet specify the transaction fee when creating a transaction?
You can calculate transaction fee = difference between inputs and outputs. - How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
With use of multiple addresses from your inputs and outputs.
- Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are the data that says this amount of BTC moved to this BTC address and hasnt been sent to another address yet.
Its like cash. If I give you a 5$ bill then we can say this 5$ is an unspent transaction. It means its in your hands. The moment it becomes a new unspent transaction it means the 5$ bill moved to a new wallet.
So by following only the unspent transactions is like saying where is the cash. Where is the live money. Something like that.
When a UTXO is in the new address it becomes a potential input to the next transaction by the same recipient.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet will add UTXOS as many as needed for the transaction. Then there will be change that will be sent to the sender again and become a new available UTXO.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
It will usually calculate the fee according to the fees on the network.
If I understood the question.
Or maybe the question is about this issue (my poor english understanding):
It will give rhw change to the sender address minis the fee. The fee will be equal to the input minus the output.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can send the btc to many addresses including your own so its harder to know if its really spent or just moved in your wallet/s.
- coins locked to addresses which private key has not signed sufficient new transactions for
- the wallet is expected to set multiple utxo’s as inputs to that the amount can be covered - assuming total balance is bigger than desired transaction, of course
- dynamically according to what’s being paid in the later blocks. Ideally the wallet should let you choose how many sats/byte you want to allocate in the transaction
- you can send amounts needing different utxo’s, you can ricochet transactions for yourself before sending funds to their final destination
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Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are unspent transactions that my wallet keeps track of. -
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
My wallet will sum up all my UTXOs together in one balance and use that one balance to cover the transaction. -
How would a bitcoin wallet specify the transaction fee when creating a transaction?
The wallet itself creates the transaction fee based on the current and previous transaction fees on the blockchain. -
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
You can use multiple addresses in both the input and output, so it will never be clear which output goes back to the sender.
UTXO are information on the Bitcoin blockchain that expresses in this case an amount of currency that one retains on the ledger
If you dont have a single transaction that will equal the output it will group more than one utxo and then return the unused bitcoin less tx fees.
The bitcoin wallet will query the blockchain for relative fees for recent past tx to determine the amount
If you wanted privacy in the tx you could send yourself an equal amount of bitcoin that is being spent in order to mask what is actually being spent by sending from your private key to a second key that you retain access to.
Describe what Unspent Transaction Outputs (UTXO) are.
It’s a value that can be spent, and the total is the wallet’s balance
What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The wallet gathers up all your UTXO, if the total value is too low for the output the transaction is denied
How would a bitcoin wallet specify the transaction fee when creating a transaction?
The UTXO - UTXO input = the fee
However since miners choose which transactions they will prioritze based on fees you can either raise the fee to speed up the transaction, or suggest a lower fee if your transaction isn’t time-sensitive.
How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Because of the encryption other users can only see where the transaction has gone, but not to who. This enables you to use several keys and send parts of an output back to yourself without anybody knowing.
- UTXOs represent the balance of the wallet
- The wallet will add up a few UTXOs in order to reach the require amount needed to cover the transaction.
- Outputs minus Inputs = transaction fee
- By using multiple inputs
- Describe what Unspent Transaction Outputs (UTXO) are.
All past incoming transactions that are not spent yet. So it’s basically your balance.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
Multiple transactions can be combined until you have enough for the transaction. Otherwise you cannot do the transaction.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
The difference between inputs and outputs. Most wallets will check for a reasonable fee that miners will accept.
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Send money to multiple addresses that you own and an other address
- Describe what Unspent Transaction Outputs (UTXO) are.
UTXOs are amounts of bitcoin used in previous transactions that can be used to create new transactions. E.g. if you received 0.5 BTC from Bob, you have a UTXO of 0.5 BTC you can use as input to create new transactions.
- What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
If you have several UTXOs, e.g. 0.5 BTC + 0.5 BTC and you want to send 0.6 BTC, your wallet will create a transaction that uses as input both these UTXOs. In such a case, the outputs will be 0.6 BTC and also 0.4 BTC sent to an address under your control.
- How would a bitcoin wallet specify the transaction fee when creating a transaction?
Wallets query the blockchain and can determine a fee good enough based on the fees used in the previous transactions. When creating the transaction, the wallet must spend all the inputs and create the outputs + the fees. The formula is basically: Inputs = Outputs + Fees
- How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
For an outsider, it’s not possible to determine which output is under the sender control, and which one is controlled by the receiver. For more privacy in a sensitive transaction, I’d use many inouts and many outputs, at best batch several transactions in one transaction, like exchanges do. In fact, when I want a bit more privacy, I send bitcoin from the coinbase.com exchange, which also pays the fees for me. The transaction usually contains many outputs and many inputs, as it’s a batch of several users transactions included in the same one.
1. Describe what Unspent Transaction Outputs (UTXO) are.
These are bitcoins received from the same or another source which are assigned to a particular wallet for spending.
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
The transaction will be rejected on the blockchain network.
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
The network determines the transaction fee but this would be input equals output plus fee.
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
Users are able to see only the wallet addresses on the blockchain rather than the users who sent them, so using several wallets for outputs can increase privacy.