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Topic: A transaction - UTXO’s, new output(s), input(s) and previous output(s). - page 2. (Read 322 times)
October 20, 2023, 08:12:04 AM
Did you write this?
Also, what is the question?
October 20, 2023, 07:55:37 AM
Yes, it's my content... https://www.reddit.com/u/Fabs_-/s/sHSWMLSrYu
A transaction locks value (bitcoin) to a script, it does this by creating new output(s) (also referred to as (UTXO’s, Unspent Transaction Outputs), through creating input(s) onto a given script using different address-types, which makes sending and receiving bitcoin easier.
An address “locks” value (bitcoin) to be spent, say, a given address receives five deposits, consisting of : 0.1, 0.2, 0.3, 0.4 and 0.5 BTC.
The address now holds a combined value of 1.5 BTC, consisting of the five individual deposits. These individual deposits are UTXO’s, or new outputs, which means that the owner of the address in question now has five new outputs at his disposal. New outputs are Bitcoin’s version of deposits available to be spent.
The owner of the address above now decides to deposit his bitcoin onto another address, thus creating a new output through an input onto the receiving address, but what is, or does, an input do ?
An input refers to the process of creating a new output, that includes specifying which of the available UTXO’s are to be spent on new outputs, creating a chain-of-ownership, and authorizing the transaction with the owner’s digital signature, thus providing proof-of-ownership as well as signing the new output with the input’s specific script signature, ensuring that the new output can’t be altered on a later stage.
* Each transaction is signed by the owner through a digital signature, which is achieved by applying the private key to the transaction data, which produces a numerical signature, this numerical signature is referred to as a “digital signature”.
* UTXO’s are able to be poured into new UTXO’s with bigger or smaller values, i.e: two UTXO’s of 0.1 and 0.2 BTC respectively are poured together into one UTXO of 0.3 BTC, minus transaction fees.
* Each UTXO requires its own signature or unlocking/spending script
* The higher the amount of individual UTXO's used during a transaction, the bigger the data-size of that transaction becomes, thus increasing the amount of space that transaction needs within a block, increasing its transaction's fees.
The UTXO’s spent in the above transaction are now referred to as previous outputs, since they don’t hold any spendable value anymore.
Transactions also receive an identification number, referred to as a TXID (Transaction ID), which is created through hashing a transaction’s transaction data (the respective inputs and outputs) twice through the SHA256-function.
I've found the topic of UTXO's to be challenging to summarize and understand, and although i'm confident in the above being (mostly) correct, i'd welcome any constructive input helping to improve the summary as well as my understanding.
A transaction locks value (bitcoin) to a script, it does this by creating new output(s) (also referred to as (UTXO’s, Unspent Transaction Outputs), through creating input(s) onto a given script using different address-types, which makes sending and receiving bitcoin easier.
An address “locks” value (bitcoin) to be spent, say, a given address receives five deposits, consisting of : 0.1, 0.2, 0.3, 0.4 and 0.5 BTC.
The address now holds a combined value of 1.5 BTC, consisting of the five individual deposits. These individual deposits are UTXO’s, or new outputs, which means that the owner of the address in question now has five new outputs at his disposal. New outputs are Bitcoin’s version of deposits available to be spent.
The owner of the address above now decides to deposit his bitcoin onto another address, thus creating a new output through an input onto the receiving address, but what is, or does, an input do ?
An input refers to the process of creating a new output, that includes specifying which of the available UTXO’s are to be spent on new outputs, creating a chain-of-ownership, and authorizing the transaction with the owner’s digital signature, thus providing proof-of-ownership as well as signing the new output with the input’s specific script signature, ensuring that the new output can’t be altered on a later stage.
* Each transaction is signed by the owner through a digital signature, which is achieved by applying the private key to the transaction data, which produces a numerical signature, this numerical signature is referred to as a “digital signature”.
* UTXO’s are able to be poured into new UTXO’s with bigger or smaller values, i.e: two UTXO’s of 0.1 and 0.2 BTC respectively are poured together into one UTXO of 0.3 BTC, minus transaction fees.
* Each UTXO requires its own signature or unlocking/spending script
* The higher the amount of individual UTXO's used during a transaction, the bigger the data-size of that transaction becomes, thus increasing the amount of space that transaction needs within a block, increasing its transaction's fees.
The UTXO’s spent in the above transaction are now referred to as previous outputs, since they don’t hold any spendable value anymore.
Transactions also receive an identification number, referred to as a TXID (Transaction ID), which is created through hashing a transaction’s transaction data (the respective inputs and outputs) twice through the SHA256-function.
I've found the topic of UTXO's to be challenging to summarize and understand, and although i'm confident in the above being (mostly) correct, i'd welcome any constructive input helping to improve the summary as well as my understanding.
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