Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#2108

The SPV does not possess a full version of the blockchain. It queries full nodes for information. SPVs can be for instance mobile wallets. A full node, however, does contain the entire blockchain and also participates in keeping the blockchain up to date.

It means that the wallet sends the transaction to the mempool.

Usually by choosing the transactions with the highest associated fee. But this is not obligatory behavior.

1 Like
#2109
  1. SPVs do not contain the entire chain, they submit requests to full nodes if they require data from further back in the chain.
  2. The transaction is in the mempool, and all nodes can see it.
  3. They choose only valid TXs and also higher fees will get picked first/fastest.
1 Like
#2110
  1. A SPV doesn’t have a full copy of the blockchain and needs to connect to a full node as needed to get the information, whereas the full node maintains a full copy of the blockchain.
  2. It is being propagated along the network of nodes and miners until the network reached consensus by fully adopting that version of the blockchain as the longest.
  3. The miner picks transactions from the mempool based on if 1)they make sense, and 2)by their ratio of bites/fees, basically who will pay the most per “sq/ft” of space on the block.
1 Like
#2111
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV does not store all UTXO data but full nodes do.
  2. What does it mean when a transaction is broadcasted?
    It has been propagated throughout the network of nodes and minders until the network has reached the consensus by fully adopting the versoion that is the longest usually with 6 confirmations of new blocks added.
  3. How does a miner pick which transactions that gets added to the next block?
    Miners select the transaction with the highest transaction fees
1 Like
#2112

  1. A SPV has ony part of the blockchain and has to verify with full nodes when querying and processing transactions

  2. The transaction is then spread to the nodes on the network

3 Miners pick transactions with the highest fees to get added to the next block.

1 Like
#2113
  1. What is the difference between a SPV (simplified payment verification) and a full node? SPV don’t have the whole Blockchain information and have to connect to a node for verify transactions, SPV is good for mobile devices.
  2. What does it mean when a transaction is broadcasted? is spread a transaction to the whole blockchain.
  3. How does a miner pick which transactions that gets added to the next block? picked from the Mempool and then see which have the highest fee.
1 Like
#2114
  1. A SPV only stores a small portion of the blockchain and relies on full nodes for information. A full node has a full copy of the blockchain.
  2. Broadcasted means you’re transaction is sent through the network in order to be confirmed
  3. Miners automatically go for the transactions with the highest fees
1 Like
#2115
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Full Node contains the full blockchain. SPV contains only parts and communicate with a full node if he needs infos about the blockchain. SPV does not store all TX
  2. What does it mean when a transaction is broadcasted?
    Full nodes shares transactions with other full nodes
  3. How does a miner pick which transactions that gets added to the next block?
    By the highest fee
1 Like
#2116

  1. The full node have all the Blockchain data and the SPV only a fraction of it and need to connect to a node to access the information.

  2. All the nodes are sending your transaction through the network.

  3. Miner will pick transactions from the mempool. They will likely pick the ones with higher fees first.

1 Like
#2117
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    the SPV does not have the full blockchain on it. Instead it uses other transactions in the network to verify as it would be too large to fit lets say into the wallet or whatever utility you are using to do the transaction.
  2. What does it mean when a transaction is broadcasted?
    it means it goes out to the nodes to enter the mempool and then be picked up by a miner.
  3. How does a miner pick which transactions that gets added to the next block?
    generally the higher the transaction fee the better the chance of it being picked up more swiftly.
1 Like
#2118
  1. An SPV doesn’t have a copy of the full Blockchain, that a full node has.
  2. It means that a node is sharing a transaction with nodes it’s in contact with.
  3. The miner picks a transaction from the mempool. The miner will most likely pick a transaction that has a higher fee, so they can make more money.
1 Like
#2119

  1. SPV don’t have a full copy of the blockchain, because they are connected to a full node, which provides the data.

  2. It means the new transaction (UTXO) is accepted and other nodes will be informed.

  3. Miner picks transaction from a mempool and prefers transaction with the highest fees.

1 Like
#2120
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV does not have a copy of the blockchain and needs to find another node to run off and broadcast transactions to. While the node does have the blockchain.
  2. What does it mean when a transaction is broadcasted?
    It means that a transaction has been requested and the transaction is then added to the mempool to await being mined in to a block.
  3. How does a miner pick which transactions that gets added to the next block?
    By the monetary incentives he is presented with for each transaction.
1 Like
#2121
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    The SPV doesn’t have the blockchain and just queries a node on spendable UTXOs
  2. What does it mean when a transaction is broadcasted?
    It is broadcastet to the network - to the nodes - checked and stored in the mempool
  3. How does a miner pick which transactions that gets added to the next block?
    Miners are interested in making profit, so they choose the transactions with the highest fees, to increase their profit.
1 Like
#2122

1.) What is the difference between a SPV (simplified payment verification) and a full node? SPV doesnt have a copy of the full blockchain. It mainly stores transactions that are relevant to it address and will require a full node to send transactions.
2.) What does it mean when a transaction is broadcasted? A node has accepted the new transactions, and it propagates it to the network.
3.) How does a miner pick which transactions that gets added to the next block? Miners will pick transactions that have the highest fees.

1 Like
#2123

  1. A SPV doesn’t have the full history of the blockchain as a node does. When you use a SPV as service it will search different nodes for truth and validation of your transaction. This is because a full node are capable of storing big amounts of data, while an SPV might be running on a mobile device or other system which is not capable of storing the complete data of the blockchain.

  2. It means that your transaction have been created and approved by your wallet and sent out to different nodes mempools. It is still an unconfirmed transaction until a miner picks it up and adds it to the next block in the blockchain. It needs to be confirmed by 6 other new blocks in order to be guaranteed that it wont be dropped in the event of a stale block.

  3. A miner picks the transactions with highest fees first, most satoshis per byte, as they get to claim these fees when their block is added to the chain.

1 Like
#2124

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV communicates with other notes in order to access the full version of the blockchain as opposed to a full node that has a copy of it stores locally.

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

When a transaction is broadcasted, it is sent by the wallet to all nodes in the network which send it to the mempool to await addition to the blockchain by a miner.

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

A miner usually picks the transaction that will provide the highest TX fees (= more $$ upon completing a block).

1 Like
#2125

  • What is the difference between a SPV (simplified payment verification) and a full node?
    full node contains all blockchain data; SPV contains only limited blockchain data and if this SPV needs more data (e.g. the latest data), it has to ask for them by a full node (query)

  • What does it mean when a transaction is broadcasted?
    a transaction has been created by a wallet, is valid and will be added to the mempool (waiting for miners)

  • How does a miner pick which transactions that gets added to the next block?
    they pick transactions from the mempool; miners are interested in transactions with the highest fees

1 Like
#2126
  1. What is the difference between a SPV (simplified payment verification) and a full node?

An SPV (usually a wallet i.e. on a mobile phone etc.) does not have the entire blockchain on it. The SPV queries a full node to check and make sure transactions match what truth on the full blockchain.

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

A node communicates the UTXO to other nodes a transaction and it spreads across the blockchain.

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

They typically will go for the transactions with the highest fees (the most reward for the miner) and then package those all up in a block and begin hashing random numbers (nonces) until they find one that falls within the Target (range of a 0 to a given number). Once they guess correctly within the target they are able to append their block to the blockchain.

1 Like
#2127
  1. SPV is used by the wallets to get only specific information from the blockchian that is of their interest, while the full node holds the whole copy of the record of the blockchain from the begining of its existence.
  2. When a transaction is broadcasted it means that a wallet has created a request for a change in the bitcoin blockchain ledger. A wallet then sends out this message with the specific change in the balance to the nodes around it. The nodes check whether request/transaction is valid (under the laws of the network). If it is, they will then store the transaction in their mempool and broadcast it further on the network, the process repeats, and eventuall the transaction reaches miners and gets put into a block and eventually inscribed in the immutable global ledger for the whole eternity (or at least while the electricity is running). If the transactions is invalid it is rejected by the nodes and doesn’t get broadcasted further.¨
  3. The miners get the transactions for the blocks from their (or other node’s) mempools. They usually take the transactions which are paying a higher fee that potentially brings more value to them.
1 Like