Homework on Bitcoin Transactions and UTXO - Questions

[Alko89]

@Johnb3

Use a greater number of transaction inputs as opposed to outputs.

This doesn’t change much in terms of privacy. What if all inputs are of the same address?

[Alko89]

@AaronMc

only UTXO’s.

Not even that just the keys to unlock these UTXOs

[kerpicik]

thank you for the answers!

[Austin1]

1. UTXO are the sum of all transactions that have been sent to you that you have not spent.

2. There could be no transaction done since you don’t have enough funds to spend, but if you have a lot of smaller UTXO’s that sum up enough to be spent in that transaction then the wallet will add them all up and the transaction will go through.

3. The wallet will estimate what the fee needs to be to get your. transaction put into the blockchain at a fast but reasonable pace to complete your transaction.

4. you can use multiple addresses and have the outputs go to different addresses than that of your input so that it looks like you paid two different people but one of the addresses is actually owned by you, so that it is more difficult to track.

[Ahmed_Amin]

1- an UTXO is a balance on your wallet that has not been spent
2- the transaction will not be send
3- from the input minus the output
4- generating more new output addresses

[Wade]

1. UTXOs are bitcoin owed on the ledger only available to the holder of the private keys of a receiving wallet of a confirmed transaction.
2. Wallet would do a sum total of all available UTXOs to the particular digital signature it does not need to be covered by a single UTXO. If the sum total is large enough the transaction can be constructed. If not the Tx is denied.
3. It is specified by being a constant in the equation. Input - Output = fee . There must always be a fee, just as you always need an input and output for a valid transaction.
4. Using multiple input addresses

[vinicanhaci]

1- Unspents outputs of the previous transactions

2 - Other uxto’s that your own will be added to the transaction. If dont have it, transaction will be canceled

3 - Input less output = Fee

4 - Increasing number of outputs, by making transactions for multiples address

[blockchainuser]

1. Your wallet balance that can be spent as an output.

2. Transaction would be declined.

3. A bitcoin wallet would query blockchain activity automatically suggesting a reasonable fee based on current and previous transaction fees.

4. Create anonymous wallets unconnected to any identity which you hold the private keys for and send crypto currency there.

[ArielS]

1. UTXOs are the BTC that were sent out from wallet to another, sitting in a potential state in the wallet, where they can be either continued to be held or spent yet again

2. Your transaction would not be sent, or UTXOs could be combined together to then make up the required amount, and if there is an excess, that change, so to say, would be returned.

3. There is a setting to specify the TX fee by comparing what recent fees on the network have been

4. Say a product you wanted to purchase cost 0.15BTC, you could set up multiple wallets, say 10, each of these wallets would then send a different amount of BTC to the required source, so that in total 0.15BTC would be sent to said wallet, say a shop from which said product was being purchased, alongside these different sends, the remainder TXs could then send amounts of BTC to each other, thereby making it very hard to trace who owns these wallets, especially if these transactions were sent over time, as in over a few blocks.

[Alko89]

@blockchainuser

Create anonymous wallets unconnected to any identity which you hold the private keys for and send crypto currency there.

@ArielS

Say a product you wanted to purchase cost 0.15BTC, you could set up multiple wallets, say 10, each of these wallets would then send a different amount of BTC to the required source, so that in total 0.15BTC would be sent to said wallet, say a shop from which said product was being purchased, alongside these different sends, the remainder TXs could then send amounts of BTC to each other, thereby making it very hard to trace who owns these wallets, especially if these transactions were sent over time, as in over a few blocks.

You can just create multiple accounts in one HD wallet

[Alko89]

@ArielS

sitting in a potential state in the wallet, where they can be either continued to be held or spent yet again

Are they really in a wallet?

[ChuckNorman]

1. Describe what Unspent Transaction Outputs (UTXO) are.

• It is, and are, equal to the funds your private key can use in an outgoing transaction.

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

• Transaction would be rejected by the network.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?

• Inputs or Unspent transactions (minus) output, outgoing transaction

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?

• By sending outputs to a new address you control. Multiple outputs would increase privacy.

[vidyasethu]

Ohhhh interesting!! When you are creating a TX to you get to see what sort of the going “market rate” rate is for fees so you can adjust accordingly?

[Renata]

1. UTXOs are all the outputs of previous transactions sent to the blockchain to your wallet address.

2. Your wallet will check if it can add enough existing UTXOs to cover the transaction. If funds are not sufficient, the transaction will be denied.

3. The TX fee is implied rather than specify. The wallet checks the best fee that will take you to the blockchain faster.
   Tx fee = Inputs - Outputs

4. By increasing the numbers of outputs addresses.

[Gevan.G2]

1- transactions received that’s not spent

2- it will not be valid

3- input minus output =fee

4- generate new output addresses all the time

[Alko89]

@vidyasethu

When you are creating a TX to you get to see what sort of the going “market rate” rate is for fees so you can adjust accordingly?

You can basically create any fee you want. In the Bitcoin programing course you learn to create raw transactions yourself and there you learn to set the fee yourself. Most wallets also have the option to choose your fee

[TauCeti]

1. They are transactions that have been sent to you (or anyone) and that are inscribed on the blockchain. They will be proccessed when you make you own transations and cease to be UTXO.

2. It will take multiple smaller UTXOs and gather them up for you to make your transaction.

3. It might ask you between multiple options depending on the speed that it will be confirmed to the blockchain. It will take a small fraction as a UTXO to pay the minors.

4.You could use it so that nobody know the whom the money was sent, because you can sent it to different adresses, and multiple adresses that can all be yours if you want.

[Twistface]

[quote=“ivan, post:1, topic:8436, full:true”]
Homework on Bitcoin Transactions and UTXO - Questions

1. Describe what Unspent Transaction Outputs (UTXO) are.
   unspent transaction output is like the change you get back, minus the fee.the change that you allocate back to your own address will become a input for your next transaction
2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   you will have to add another input(UTXO) to cover the cost and direct the change minus the fee back to your address
3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   input minus out put=fee
4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   by using multiple wallets

[Daniel_Afteni]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   UTXO are the inputs of a private key, the Bitcoin that is available for a private key to spent, the possible outputs of a private key.

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   The wallet will combine more UTXOs which value in total will cover the transaction plus fee, the excess of BTC will be sent back to your private key.

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   The transaction fee will be chosen based on the last BTC transaction in such a manner that your transaction will get fast enough in the blockchain.

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   Using more transaction inputs and outputs in a single transaction will increase your privacy, making it harder to track your identity by having an unpredictable habits behavior.

[JeremyH]

1. Describe what Unspent Transaction Outputs (UTXO) are.
   — UTXOs are outputs from a prior TX that are received by the blockchain and tied to a private key but not yet spent by being involved as Inputs in a new TX

2. What would happen if you don’t have any single UTXO that is large enough to cover for your transaction?
   – The wallet will gather any other existing UTXOs it has access to via the private key and use those UTXOs to cover the charge. And any balance is spent back to an address owned by the Private Key of the wallet.
   Generally, the wallet queries the blockchain and sums up all the UTXOs tied to the private key to see if the sum required by a TX can be covered

3. How would a bitcoin wallet specify the transaction fee when creating a transaction?
   – The fee is never specified, it is implied. It is calculated by the wallet as FEE = INPUTS - OUTPUTS

4. How could you use the notion of transaction inputs and outputs to increase privacy in your transaction?
   – The inputs and outputs of a TX are between bitcoin addresses and these addresses are not user friendly and as a result a level of anonymity and privacy is achieved.