Homework on Bitcoin Transactions and UTXO - Questions

Blockchain and Bitcoin 101
#1912

  1. UTXOs are the amount of funds your wallet has access to.

  2. The transaction would not go ahead.

  3. Input - Output = Fee.
    A Query is made to the blockchain for recent transaction fees.

  4. By mixing the transactions between multiple addresses.

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#1913

  1. UTXO are what you have received and not yet spent.

  2. The transaction will not be accepted it will be invalid.

  3. Input - output = Fee

  4. By using several new output addresses when you do a transaction.

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#1914

  1. UTXOs are previous transactions and therefore funds sent to addresses, that I control with my private key and which I didnt spent yet.

  2. The wallet will combine UTXOs so the ammount will be enough and all that´s larger than what is needed for the transaction minus fees will be given/send back to myself.

  3. It will look up the latest fees from former transactions and take a fee that would have the transaction deployed in a reasonable time. The fee is then diplayed in the transaction as UTXO - UTXO input.

  4. Use different adrdresses.

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#1915
  1. UTXOs are a balance associated with your private key that you can spend to create a new transaction.
  2. you pool multiple UTXOs together until you have a high enough balance to cover the new transaction.
  3. the bitcoin transaction fee is calculated by satoshi/byte, bigger transactions with more UTXOs need more space in a block and a higher fee need to be paid to make it lucrative for the miner.
  4. using mutliple addresses for input and outputs can make it harder to track the orginal transaction.
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#1916
  1. UTXOs are inputs on a wallet which have not been spent so far. They contain the amount of Bitcoin which can be spent.
  2. If you do not have a single UTXO, more than one UTXO will be used.
  3. The Bitcoin wallet specifies the fee like this: fee = input – output
  4. To increase the privacy several inputs and outputs could be used. Generate several addresses because of the cryptography it cannot be tracked which one is your address.
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#1917

Why not just use multiple addresses? :slight_smile:

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#1918
  1. UTXO’s is the name given to the btc stored in your wallet.
  2. You will not be able to make a transaction.
  3. The difference between a transaction input and outputs gives the transaction fee
  4. You can make a lot of transactions as it is impossible to determine where each transaction goes.
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#1919

BTC is stored on the blockchain, your wallet only holds the keys :wink:

What if you always use the same address for these transactions? :wink:

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#1920

Yes, that is true! Addresses is a more appropriate term.

#1921

1 UTXOs are like the change given from a previous transaction
2 If you do not have enough UTXOs to cover a transaction it can be combined with other UTXOs in your possession to make up what is needed.
3 The transaction fee is generated by the wallet as an offer to the miners and can be increased/decreased manually, a bit like an apple seller can lower the price to sell more apples or raise the price to make more profit.
4 You could increase privacy by using multiple addresses for the same wallet, and using a different address for every transaction.

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#1922

  1. UTXOs are unspent transactions; essentially the balance in your wallet.

  2. If a single UTXO is not sufficient to cover a transaction, then your wallet will sum all UTXOs to see if your balance is large enough to cover the transaction.

  3. The transaction fee is difference between the input(s) and output(s).

  4. Several outputs (and output addresses) can result from one input. Because each output address is different from the input address, there is no way to know who the output recipients are. The output recipient could be sender if the sender has multiple addresses, but there is no way of knowing that.

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#1923
  1. UTXOs are the unspent balance from a previous input transaction(s).

2.your wallet will add previous UTXOs together till there is enough to cover the transaction and the transaction fee/cost.
If the total available UTXOs do not equal the amount equal to the total transaction cost, the transaction can not be completed.

  1. TX fee = inputs - outputs

  2. By transfering the remaining UTXOs to a new wallet address so there is no association between the input (where the BTC came from) and the associated output addresses. Therefore, how the UTXOs are returned to the original owner is unknown because there is no association between the UTXO input & outputs.

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#1924
  1. Unspent Transaction Outputs are transactions that have not been spent yet.
  2. If you didn’t have any single UTXO that is large enough to cover for your transaction then you would not be able to complete the transaction until you find an additional UTXO that covers the transaction.
  3. A bitcoin wallet specifies the transaction fee by checking the blockchain and previous transactions and providing you with a similar fee to the previous ones that allows you to complete the transaction fast and efficiently.
  4. If you wanted to increase your privacy in the transaction, you could then send some of the needed funds for the transaction to another account that you control and it would then be perceived as another individual in the transaction.
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#1925

Describe what Unspent Transaction Outputs (UTXO) are. As the name implies, they are transactions that were output from one wallet to another, in other words, the transaction that the sender output to the recipient, has not yet been spent.

What would happen if you don’t have any single UTXO that is large enough to cover for your transaction? You will not be able to transact.

How would a bitcoin wallet specify the transaction fee when creating a transaction? It calculates it by taking the difference between the Input - Output.

How could you use the notion of transaction inputs and outputs to increase privacy in your transaction? Bitcoin transactions involve outputs and inputs between different randomly generated addresses. It becomes nearly impossible to trace how much a the sender wallet has spent, since the transactions is later split between multiple recipients, of which, one or more may actually be the original sender.

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#1926
  1. Sum of all incoming transactions that have not been sent out (spent) yet.
  2. Many UTXOs will be summarized and sent out all together.
  3. Based on recent confirmed transactions.
  4. Send all change to a new btc address.
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#1927
  1. UTXO are all the incoming transactions to your wallet. Anytime someone generates an output from the wallet and its addressed to you it stays in the blockchain as an UTXO until you generate a transaction and spend it.
  2. If you dont have a single UTXO that is large enough then your wallet will take multiple UTXOs and combine them to generate the transaction.
  3. the fee will be calculated by subtractin the outputs from the total inputs
  4. you could generate multiple outputs to various wallets you control. I believe most hardware wallets do this automatically, but please correct me if im wrong
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#1928

  1. UTXO’s are the balances of input and output transactions that is waiting to be processed by your private key in your wallet to be processed as output to your next transaction or transactions.

  2. The transaction would be invalid and rejected.

  3. Bitcoins transaction fee is calculated on the basis of what is left over from the transactions input and output results.

  4. The best way would be creating different addresses for each transaction, making it harder to trace back to individuals.

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#1929
  • Describe what Unspent Transaction Outputs (UTXO) are.
    • Unspent Transaction Output. These r BTC amts that a wallet receives from other wallets
  • What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
    • I would have to combine multiple UTXOs available in my wallet to meet the target amount + fee
  • How would a bitcoin wallet specify the transaction fee when creating a transaction?
    • It will look at recent fees, then recommend a reasonable fee for the trx
  • How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
    • I could send leftover money (my “change”) to another wallet I control
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#1930

1.)
UTXO are “Unspend Transaktion Outputs”

UTXO´s are basically just entrys on the blockchain.
If my private key is authorized, then I can initiate a change on the
blockchain and transfer the credit (Bitcoin) to a another person.
My output become someone else’s inputs (UTXO) in the future.

2.)
If i have 2 UTXO´s

A= 0.5 BTC
B= 0.5 BTC

an send 0.6 to a another person, the wallet will use both UTXO´s to create the transaction.
Therefore the transaction gets bigger (in bytes) and the fee gets higher to.
0.6 BTC goes to this person and the difference 0.39… BTC (minus the fee) goes back to the sender (me).

3.)
The volume of Bitcoin doesn’t matter.
What is important is the number of used UTXO´s and the size of the transaction in bytes. (satoshi per byte)

4.)
Use a different address for each receiving transaction.
As far as i know, these are often called “change addresses”
These addresses are getting generated automatically by the wallets.
Or even better just use Monero :kissing_heart:

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#1931

1- Unspent transactions output are confirmed spent transactions from other recievers sent to you or change from previous transaction which showcases total wallet balance you can spent approvable by your pvt. key
2- well you may be rejected to cover that transaction or you could use multiple UTXO’s to cover the transaction you like to commit for
3-well the transaction wont be specified explicitly, but the difference between input of utxo’s and output determines the transaction fee
4- possible use of different address for each output can help maintain that privacy integrity

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