Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#1772

Thank you so much for the information Alko . :slight_smile:

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#1773
  1. UTXOs are transactions which are waiting for spending, so UTXO is our wallet balance
  2. basically we can use 2 UTXO and we will get “change” back
  3. input - output = tx fee
  4. using multiple addresses
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#1774

Homework: Bitcoin Transactions & UTXO

  1. UTXOs are the private key holders leftover balance from each transaction.
  2. The transaction will not go through and that transaction will not be added to the blockchain.
  3. UTXO - Input = fee
  4. Different addresses for the UTXO. Spender looks different than receiver.
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#1775

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    It’s sort of like a database of previous incoming transactions of coins received linked to your private key on the blockchain.

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    It would add up what current UTXO’s you have to see if it can cover the balance you’re trying to spend. If the sum of the UTXO’s are smaller than the transaction amount, it would invalidate the transaction.

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The fee is specified by subtracting the total amount of UTXO Outputs from the inputs.

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By implementing the use of multiple addresses during the transaction along with differing amounts so it wouldn’t be easy to track.

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#1776

1.UTXO is your overall balance left over after any payments made, that come back to yourself. Basically What you have left out of your entire amount of funds (From specific wallet) after a payment is made… (I think :grimacing:)

  1. The network would confirm that the transaction is invalid and not allow the transaction.

  2. It does not specify the transaction fee, it is implied.

  3. There is no name or personal data attached to the transactions, there for rendering the transaction anonymous, especially since transaction addresses can not be cracked without private key. (Is this right?:thinking:)

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#1777

  1. UTXOs are the amount of bitcoin that you have received that have have not yet spent.

  2. If you did not have any UTXO that is large enough to cover your transaction you would need to use more UTXOs until the total is enough to cover the transaction. The change from that transaction would then be sent back to an address held by you.

  3. A bitcoin wallet would assign a transaction fee that is large enough to efficiently process your transaction and add it onto the input.

  4. inputs and outputs increase privacy because when you look at the blockchain ledger you can view the inputs and outputs of a transaction but it does not show you who these inputs and outputs relate to.

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#1778

  1. UTXO is whole BTC, or fraction of BTC, of unspent output funds – the sum of which constitutes the user’s balance.

  2. Then the transaction won’t go through.

  3. It looks for the leftover inputs after outputs are taken

  4. Use different addresses

#1779
  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXOs are transactions that have been received or sent from your wallet that consist of the amount of BTC you have received or sent
  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    In order to cover a transaction that is larger than any single UTXO you will need to merge all the UTXOs that you have received.
  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    The transaction fee is the result of the input minus the output
  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    By generating new addresses for each transaction that you make it will increase the security of your transactions as it is harder to trace back the initial transaction.
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#1780

What happens to the transactions that are embedded in the blocks of other miners that do not successfully solve the puzzle and do not get their block in the blockchain ?

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#1781

  1. It’s a transaction that has been sent to you, but you have not used. Almost like someone sent you a giftcard which is not money.

  2. Multiple UTXO’s can be combined to make the full transaction

  3. Output minus the input

  4. Multiple addresses and transactions

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#1782

You could always combine multiple UTXO’s in order to make a large enough transaction. If the sum of all transactions is not larger enough, you wouldn’t be able to do the transaction.:slight_smile:

2 Likes
#1783

Correct. But every wallet will have to estimate fee by looking at the current average fee. They do this by using a unit of measurement called satoshi per byte. :slight_smile:

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#1784

What if I somehow connect your identity to one of the public address you own. Can you do anything to make you more private again?

Bitcoin is considered to be pseudonymous. :smiley:

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#1785

Coolio, thanks for the clarification!

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#1786

  1. Unspent Transaction Outputs are essentially the data bits representing funds on the network. For example, the funds you have, if any, in your wallet are UTXO’s. Blockchain track all of them by keeping a distributed ledger.

  2. Depends. If all UTXO’s in your wallet combined are less than the new transaction, the request would be declined. Otherwise, if for example, you have a couple of UTXOs for.5 & .4 and your new transaction is .7, your wallet will send both so the new recipient can receive .7 and you .2.

  3. Tx Fee’s = INPUT - OUTPUT.

  4. If the use of multiple Inputs/outputs is not sufficient then perhaps the use of a new address will help increase privacy.

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#1787

UTXOs are just the unspent balances, thus the name (Unspent Transaction Output) :slight_smile:

You don’t need to merge all of them, you just need to select that much so you can cover the payment :slight_smile: You don’t give the entire wallet to the cashier when you want to pay something for $6 and only have 3 banknotes of $5 :slight_smile:

These transactions are then invalid or don’t exist for that matter :stuck_out_tongue:

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#1788

But unspent Bitcoins are money :smiley:

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#1789

1 The UTXOs is an output or transaction you have received and has not spend yet is also the wallet total balance
2.there will be not transaction it will be decline
3. The wallet checks the blockchain and see the last fee or the result from inputs less outputs.
4. creating several wallets and sending many inputs and outputs between wallets

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#1790

Yes, you are absolutely right I totally overlooked that possibility when answering the question.
Thanks for your support @Mauro.:+1:

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#1791

  1. Describe what Unspent Transaction Outputs (UTXO) are.
    UTXO is the amount of coins you did not spend that means the amount that u have

  2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    the transaction won’t be confirmed

  3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
    Fees = inputs - outputs

  4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    by always using new address when receiving transaction

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