Homework on Bitcoin Ecosystem - Questions

[Grebler]

1. An SPV does not have the entire copy of the blockchain, it checks on some nodes for the validity of the transaction. A full node has the entire copy of the blockchain.

2. It means that it will be registered on the blockchain after validation by the nodes.

3. A miner chooses the transaction with higher fees to add the next block.

[leeandro.leeite]

Homework on Bitcoin Ecosystem - Questions

1. What is the difference between a SPV (simplified payment verification) and a full node?
The SPV normally runs in a mobile phone because it does not have enough space to store a all blockchain data. The SPV gets blockchain information from nodes in the network. Nodes in the other hand, have a full copy of the blockchain stored in them.

2. What does it mean when a transaction is broadcasted?

Means that the nodes received the transaction requests that stays on the mempool and its spread all over the newtork between nodes.

3. How does a miner pick which transactions that gets added to the next block?

Normally it chooses the transactions with the higher fees. Then it gathers with other transactions in the into the block and hashes them.

[Dominykas_Pozleviciu]

1. SPV does not have a full copy of blockchain, while node has a full copy
2. It is broadcasted to the blockchain
3. Miner picks tx’s with highest fees

[Guilherme_Freitas]

1. What is the difference between a SPV (simplified payment verification) and a full node?

A SVP holds only part of the blockchain as necessary and queries full nodes for further blockchain data when needed. It can also create transactions.
A full node holds an entire copy of the blockchain and takes part in consensus achievement to determine the valid chain. It cannot create transactions.

2. What does it mean when a transaction is broadcasted?

That’s how the transaction is “spread” across the nodes. A node receives a transaction from a wallet or node and passes it forward to another node.

3. How does a miner pick which transactions that gets added to the next block?

It selects the transactions with higher fees available in the mempool and adds them up to the block to be mined until this block is “filled”, limited by the block size.

[Omas]

1. SPV does not have a complete version/copy of the Blockchain it can only query a full node. While a Full Node has a complete version/copy of the Blockchain and shares it with other nodes.
2. It has been sent/submitted for confirmation and appending to the Blockchain.
3. A miner checks his copy of the mempool or query another node for its version and goes for the transactions with the highest fees.

[StevenM]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   SPV is used when using a smart phone or a tablet; a node is used when using a computer or laptop.

2. What does it mean when a transaction is broadcasted?
   It goes out to the other nodes in the network.

3. How does a miner pick which transactions that gets added to the next block?
   Miners always look for the biggest transaction fees cause they wanna make money. And that’s how the picking goes.

[Nara]

• What is the difference between a SPV (simplified payment verification) and a full node?

A full node locally stores a copy of the blockchain. A SPV only stores the block headers, which means that it requires over 1000x less storage space to run a SPV compared to a full node. A full node can validate transactions independently while a SPV must query a full node for the required information to validate a transaction.

• What does it mean when a transaction is broadcasted?

Broadcasting a transaction means propagating it to nodes so that it will get picked up by a miner and added to the blockchain.

• How does a miner pick which transactions that gets added to the next block?

They check if a transaction is valid in terms of its inputs and outputs and then prioritize based on transaction fees.

[Jigawatt]

1. What is the difference between a SPV (simplified payment verification) and a full node? A SPV does not need to run a full network node to verify bitcoin payments.
2. What does it mean when a transaction is broadcasted? We can broadcast a transaction in the Bitcoin blockchain network to get it validated and spend our cryptocurrency.
3. How does a miner pick which transactions that get added to the next block? I believe they select them based on the higher fee payout.

[Jugging_Crypto]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   An SPV holds your private keys and refers to the blockchain via communicating with nodes that read the block chain to determine how much you have available in funds, it can also generate transactions. An SPV is typically an app on your phone or something. A full node is used to store the whole blockchain and communicate with other nodes to verify each block being added.

2. What does it mean when a transaction is broadcasted?
   After generating a transaction with an SPV the transaction is broadcasted or propagated to the network. This means the transaction is communicated through the nodes and added to the mempool awaiting a miner to add it to a block.

3. How does a miner pick which transactions that gets added to the next block?
   Miners pick the transactions that offer the highest fees because they are financially incentivized.

[Maxim_O]

1. Full node has a copy of a whole blockchain. Classic wallets like bitcoin ABC are examples of full node wallets you can install on your desktop, if you have plenty of hard drive place.
   SPVs are light wallets which are not a full node, however they are connected to a full node somewhere. Example would be a Mobile Wallet, since you usually don’t have enough space for a full blockchain on your mobile device.
2. Transaction broadcasting is a process of sharing of transaction with other nodes.
3. Generally miners choosing transaction with the highest transaction fee per KB.

[Alko89]

@Maxim_O

bitcoin ABC

I bitcoin ABC is the Bitcoin cash implementation of the full node. Bitcoin implementation is called bitcoin-core

[Ag9]

• What is the difference between a SPV (simplified payment verification) and a full node?
  SPV does transaction, but not store it on blockchain. For that SPV need to connect transaction to node in order to get added to blockchain
• What does it mean when a transaction is broadcasted?
  It means transaction sent to network
• How does a miner pick which transactions that gets added to the next block?
  It is miner own choice which transactions to choose, but most often it is with highest fees.

[CraigH]

• What is the difference between a SPV (simplified payment verification) and a full node?
  SPV is not a full copy of the blockchain but can read a node to get data

• What does it mean when a transaction is broadcasted?
  The data is written to the blockchain and the nodes updated

• How does a miner pick which transactions that gets added to the next block?
  They try to select the TX’s with high fees to create a better reward for themselves

[Dany]

1. What is the difference between a SPV (simplified payment verification) and a full node?

• SPV is a small node, it needs to be connected to internet to get full access to blockchain in order to work as full node

2. What does it mean when a transaction is broadcasted?

• it means it was send from wallet to the nodes to get validated.

3. How does a miner pick which transactions that gets added to the next block?

• miners are picking Txs with biggest fee from a mempool

[Maxim_O]

Hi Alko,
yes you are correct.
I think back in 2013 when I used it it said BitcoinABC, But it was a while ago.
But yes, now BitcoinABC and Bitcoin.com domain is bitcoin cash

[CryptoHats]

Homework on Bitcoin Ecosystem - Questions

1. What is the difference between a SPV (simplified payment verification) and a full node?
   A full node inherents the complete blockchain. SPV contains only transactions at is not complete
2. What does it mean when a transaction is broadcasted?
   Its distributed to the blockchain network
3. How does a miner pick which transactions that gets added to the next block?
   Miner Pick the transaction with the highest fees

[Shane]

1. A full node contains a lot more data storage capabilities than an SPV. The full node contains the full blockchain record. The SPV is something small like a mobile app that needs to connect to and trust a full node for the full blockchain record.

2. Broadcasting a transaction is propagating the transaction across the network into the mempool of nodes.

3. A miner picks a transaction from the mempool of a node based on the fee paid - the higher the fee, the more likely it will be processed swiftly.

[Deon]

1. What is the difference between a SPV (simplified payment verification) and a full node?

– A full node downloads all the blocks in the network and verifies every transaction. SPV downloads block headers and only transactions that is relevant to the wallet addresses it speaks to. SPVs are great for devices with limited storage. It checks that transactions have been accepted by other nodes (6 is good practice).

2. What does it mean when a transaction is broadcasted?

– It means that the transaction has been added to the network.

3. How does a miner pick which transactions that gets added to the next block?

– Miners will pick the transactions that will give them the highest return on investment. Highest fees for the smallest size on their block.

[Den]

@ivan

Homework on Bitcoin Ecosystem - Questions

1. What is the difference between a SPV (simplified payment verification) and a full node?
2. What does it mean when a transaction is broadcasted?
3. How does a miner pick which transactions that gets added to the next block?

1. A SPV (Simplified Payment Verification) does not have a full copy of the blockchain in local, it is usually a device with limited hard-drive capacity (like a mobile phone) that accesses to a Node to get the information related to the Bitcoin blockchain.

2. A transaction is broadcasted when going out of the wallet to be brought to a Node that will, if relevant transaction like sufficient UTXOs associated to the Bitcoin address, be pushed to other Nodes in the Bitcoin blockchain network.

3. Miners choose the transactions that need to be added to the next block by choosing the ones which have the highest fees associated with.

[Benjamin_Langegger]

1. a full node has a complete copy of the blockchain and a SPV only information on your tx. A SPV needs to connect to the blockchain to get a full copy and verify tx.

2. the tx is sent to the mempool and is waiting to be picked by a miner and added to the blockchain.

3. a miner can choose from any tx in the mempool and generally choosen the ones with the most rewards and fees / highest sat/B rate