Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#2208

Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node? The SPV needs the conection with the full node to get the data SPV dont store UTXOsi without the conection not possible SPV complete the transaction

  2. What does it mean when a transaction is broadcasted?
    when the transaction is already acepted into the blockchain

  3. How does a miner pick which transactions that gets added to the next block?
    minners pickthe transaction with the highest fees (satoshis per byte)from the mempool

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#2209
  1. The former is used in applications for mobile devices (consults the blockchain from a full node since having a copy of the entire database would be impractical) and the latter (used in larger computers) is the one that has an entire copy of the blockchain for validation purposes.
  2. Once the transaction is digitally signed by a wallet it is transmitted to the internet for being executed.
  3. It picks it from the mempool and usually selects the ones with higher fees first.
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#2210
  • What is the difference between a SPV (simplified payment verification) and a full node? SPV wallets donā€™t store all UTXO data and must get data from full node.
  • What does it mean when a transaction is broadcasted?
    Full node shares transaction with other full nodes
  • How does a miner pick which transactions that gets added to the next block?
    Miner perfers transactions with highest fee per KB
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#2211

  1. A SPV is basically a cell phone or a device that can connect to the internet but doesnā€™t have enough memory to store the whole block chain. So it must query a full node in order to get the block chain to complete and make transactions. A Full node has the whole block chain on it which is usually a desktop computer and is capable of broadcasting the block chain to different nodes and spvā€™s.

  2. A transaction is accepted by a node and propagated to other full nodes.

  3. Miners pick there transactions based on the fees incorporated with the transactions in the mempool. They will pick the ones with the highest fees because that is what incentives miners to mine and how they make money.

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#2212

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Its a small node and trusts / follows a full node.
    Didnā€™t store the entire copy of the blockchain locally, like a full node.

  2. What does it mean when a transaction is broadcasted?
    The transaction is accepted and is shared to all other notes in the network

  3. How does a miner pick which transactions that gets added to the next block?
    Normally, the pick the transactions where they can earn the highest fee. Incentive driven!

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#2213

  1. Your full node will have your private keys and a copy of the blockchain (an application on your desktop). You will need a desktop to run a full node due to its system requirements. If you are using mobile devices, you are likely running an SPV. SPV has your private key, but not a copy of the blockchain. It needs to communicate with other full nodes (or several nodes) to verify a transaction

  2. When a transaction is broadcasted, the transaction has been verified by a full node and that information is relayed on to all other nodes within the network. If all other nodes come to a consensus agreement, the new block with the transactions will be appended on to the blockchain

  3. Miners will always prefer transactions with higher transaction fees. In Bitcoin the fees are paid in Satoshis/Byte. Larger the byte, higher the fee. The fee is not determined by the amount you send but by the byte size it represents in binary

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#2214
  1. An SPV only holds and reads the blockchain, a full node functions as a miner as well. SPV needs to retrieve blockchain data from the node

2.The nodes accepts a new transaction and propagates it through the blockchain network.

  1. they take the ones with the highest transaction fees
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#2215

  1. A full node stores an entire copy of the blockchain, a SPV usually stores relevant transactions to its addresses. A SPV will communicate with a full node to send transactions

  2. When a transaction is accepted then propagated to all other nodes on the network.

  3. A miner will be incentivised to choose transactions from the mempool with the highest transaction fees to be added to the block next.

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#2216

  1. An SPV can verify transactions without having to run a full node or download the entire block history. It needs to communicate with a full node to send transactions.

  2. When a transaction is broadcasted, it is stored in the mem pool and propagated to nodes.

  3. Itā€™s incentive-driven, so they would usually pick the transactions that gave them the most reward. This is measured in sats/byte.

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#2217
  1. Doesnā€™t store all data, fetches from nodes.
  2. Transaction is sent to mempool to be mined.
  3. Highest fees are chosen.
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#2218

SPVs only have part of the blockchain

The wallet broadcasts the transaction to the nodes that place it in the mempool if it is valid

The minor may choose any transaction in the mempool usually the one that has a high transaction fee.

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#2219

  1. A SPV only has part of a blockchain

  2. A transaction is broadcasted by a wallet to the node that verifies that it is valid and then adds it to the mempools of the nodes

3ā€¦ A minor may pick any transaction in the mempool, usually with a higher transaction fee.

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#2220
  1. SPV access a node for verification but doesnā€™t have the full network within it, while a full node has the entire block chain.
  2. A transaction is broadcasted when it is propagated to all of the nodes.
  3. Miners choose transactions from the mempool that have the highest transaction fees.
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#2221

1.What is the difference between a SPV [Simplified Payment Verification] and a full node ?

SPVā€™s are nodes which do not have a copy of the entire blockchain, they will trust a full node to view the blockchain. A full node will have a complete copy of the blockchain.

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

It means your transaction has been made known to all the nodes in the Blockchain.

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

Miners will pick transactions with the best incentives to be added to the next block first. Usually those with the best block rewards and best transaction fees will be first.

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#2222

SPVā€™s just send out transactions to nodes. They do not store a copy of the entire Bitcoin blockchain. A full node is like a signaler for the network, they store the entire Bitcoin blockchain history and collect transactions to be stored in the mempool, until they are officially verified by a miner and leave the mempool to go on the official immutable blockchain.

A propagated transaction means it has been recognized by a node and added to the mempool, awaiting confirmation. It has been shared with network nodes.

The miner picks which transactions get added by finding the most valuable transaction fee. The best byte/sat ratio transactions get verified first, due to economic incentive.

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#2223

[quote=ā€œivan, post:1, topic:8444, full:trueā€]
Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV remembers locally related transactions, those relevant to its addresses. A full node contains a copy of the entire block chain and has the ability to broadcast.
  2. What does it mean when a transaction is broadcasted?
    It is sent out to the entire blockchain to be confirmed and built upon.
  3. How does a miner pick which transactions that gets added to the next block?
    Fee rate and hash rate.
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#2224
  1. An SPV can be run on a wallet or low end sytem with the help of a node and without needing as much storage
  2. After a transaction is propagated it is sent to a node that node will check the transaction and send it to the next node who will repeat this process, thus broadcasting it to the network.
  3. Normally a miner will pick whichever transaction has the highest transaction fee first.
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#2225
  1. SPV wallets contain partial data unlike a full node which stores the whole blockchain data.
  2. Transaction is validated and shared, distributed to the other nodes.
  3. The miner chooses the transactions with the highest transaction fees which translate to a higher compensation.
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#2226
  • What is the difference between a SPV (simplified payment verification) and a full node?
    spv is a small node that trusts a full node to read the blockchain. used on small devises.
  • What does it mean when a transaction is broadcasted?
    the wallet would create and sign transaction, then broadcast it to the network, the nodes in the network would have to confirm that the transaction is valid, then it would get into the block (hopefully)
  • How does a miner pick which transactions that gets added to the next block?
    (hopefully) if the transaction fee of the transaction that i want to make would be high enough so the miner would want to put it into the next block.
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#2227
  1. SPV doesnā€™t has whole blockchain with node has it.
  2. It means is pass transaction to blockchain and from one mempool to another.
  3. Miner picks most profitable transactions in first place by maximalization indicator sat per bite
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