Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#282

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV may store part or none of the blockchain whereas a full node stores the entire blockchain.

  2. What does it mean when a transaction is broadcasted?
    A transaction is sent ultimately to all nodes and stored in each node’s mempool.

  3. How does a miner pick which transactions that gets added to the next block?
    A miner can pick any transaction they prefer but what typically happens is the miner picks the transactions with the highest fees.

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#283

Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV is not a full node in the BTC network and so it does not have the full ledger, while a full node has downloaded every block and transaction and checks them against the rules of the Bitcoin network. An SPV can run on a mobile and it can confirm if a payment has been processed on the BTC network by requesting this information from a full node.

  2. What does it mean when a transaction is broadcasted?
    A transaction is broadcasted by a full node, if it follows the rules of the Bitcoin network. For example a full node checks, if the output of a transaction does not exceed the sum of all UTXOs. If the output is smaller than the sum of all UTXOs and the transaction is properly signed, it will be broadcasted to the network by the full node.

  3. How does a miner pick which transactions that gets added to the next block?
    Due to the incentive to earn money via mining, usually miners pick the transactions with the highest fee per byte first. When finding a new block, miners will not only get the block reward, but also the sum of all transactions fees from the transactions contained in this block.

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#284

SPV has to find a node around to be able to do transactions, full node can do all by itself.

That its propagated to all nodes

A miner will see which option is more efficient for the moment, and probably choosing transactions where more fee can income.

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#285

  1. An SPV uses another full nodes history of the blockchain to verify transaction validity and wallet balance.

  2. When a wallet signs a transaction with your private key and sends it to the nearest nodes in its network, it has been broadcasted.

  3. A minor will typically pick transactions with the highest transaction fee attached to it.

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#286
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    It’s a “semi” node usually an app on phone which receives data from a full node. This limits its functional ability and can not add data to mempool.
  2. What does it mean when a transaction is broadcasted?
    This happens when all nodes are updted with a new TX hash
  3. How does a miner pick which transactions that gets added to the next block?
    A miner is financially incentivized and will prefer TXs of highest bids or the higjest binaric utilization.
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#287
  1. A SPV does not hold the copy of the entire blockchain, it needs to rely on a full node to generate transactions. On the contrary, a full node does keep record of the whole blockchain, verifies transactions and spreads them around to all other nodes.
  2. Broadcasting is executed by nodes. Doing so, transactions are verified and transmitted to all other nodes keeping track of the blockchain.
  3. A miner picks the transaction offering the highest fee (satoshi per byte) from the mempool.
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#288

1.SPV’s are partial nodes that don’t store all UTXO data. They are small enough to run on a phone and yet still able to communicate with full nodes so they can facilitate a transaction.

  1. A broadcasted transaction has been accepted as valid by a sampling of nodes and is then broadcasted to all the other nodes.

  2. Miners pick the transactions with the highest fees first.

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#289

  1. An SPV does not have a copy of the blockchain whereas a node does.

  2. Broadcasted means that the transaction is propagated by the nodes, verified and added to a block to be picked up a miner.

3 A miner picks up transactions from the mempool based on the highest transaction fee.

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#290
  1. SPV is from a mobile phone or tablet that doesn,t hold all utxo data.,A full node is a computer /desk top .
  2. A transaction being broadcasted means being sent to the nodes for verification before being sent to the mempool before miners confirm on a new block …
  3. A miner picks a transaction from the mempool , usually with the highest fee and then adds to the block .
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#291

  1. A full node contains a copy of the blockchain. An SPV could be your usb wallet who has to connect to a node to fullfill the transaction.

  2. A transaction is sent to a node that stores it in a mempool, waiting for a miner to pick up transactions and confirm them.

  3. A miner is economicly incentivised. Miners get paid in sats/bit. So the miner will pick the transactions that generate the highest fees.

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#292

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    The full node holds the complete DataBase, the SPV (wallet) only connects to a full node

  2. What does it mean when a transaction is broadcasted?
    The transactions are shared / distributed between all full nodes

  3. How does a miner pick which transactions that gets added to the next block?
    The higher the fee (per kB) are, the more likely the miners pick these once first

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#293

  1. A SPV does not have the full block chain on it. A full node contains all block chain data

  2. It is sent over the network

  3. It looks at the memo pool at picks the ones with the higher fees

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#294

  1. An SPV has no access to the blockchain, so it has to ask the other nodes for the blockhain data. SPVs are normally present wallets in phones, to access the full blockchain it is only possible on desktop.

  2. It means that the wallets have sent the transactions to the nodes to be later picked by miners.

  3. Miners have their own nodes so they can read the blockchain data and pick the transactions that are more profitable for them.

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#295

  1. An SPV does not keep a copy of the blockchain locally. They need to query a node to get UTXO information.

  2. A transaction is broadcasted when it is propagated to all the nodes.

  3. A miner looks at the size of the transaction and the fee and picks the most profitable ones.

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#296
  • What is the difference between a SPV (simplified payment verification) and a full node? An SPV is a limited node that relies on getting information from a real node in order to transact; frequently this can be on a cellphone or other limited device.
  • What does it mean when a transaction is broadcasted? An unconfirmed transaction is broadcast when it is created and posted to nearby nodes’ mempools, which in-turn broadcast to nearby nodes until all mempools are updated.
  • How does a miner pick which transactions that gets added to the next block? A miner picks the transactions that balance high fees with low amount of bytes required for storage.
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#297
  • What is the difference between a SPV (simplified payment verification) and a full node?
  1. A full node wallet tx is a verified on chain tx where the entire bitcoin database is downloaded so you know without a doubt your bitcoin is real. SPV or lightweight wallets have to connect to full nodes that are SPV compliant to obtain tx confirmation.
  • What does it mean when a transaction is broadcasted?
  1. After a transaction was signed by your private key and confirmed by your public key and sent through the network, nodes will share/broadcast that transaction until a miner validates it on a block.
  • How does a miner pick which transactions that gets added to the next block?
  1. Usually they will select tx’s from a nodes mempool with higher to highest fees.
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#298
  1. a SPV run on a mobile and is a part of the node. It refers to the node which, differently from the SPV, has the entire blockchain
  2. It means that it is spread around throught the entire blockchain
  3. he choses the transactions with the highest fees.
#299

SPVs are light nodes. They only acquire information about the latest few blocks from several full nodes, in order to be up to date with the UTXOs linked to the private keys they hold.
Full nodes have the copy of the whole blockchain from the genesis block to the most recent block. They secure the network by validating transactions and blocks created by miners, they propagate information through the network and hold transactions in their mempool.

It means that it has been sent out to other nodes to be validated, and it has been placed in the mempool waiting to be picked up by a miner.

From the mempool miners will most likely pick transactions with the higher transaction fees. These fees are priced in sat/Byte. The higher the satoshi amount per byte the transaction takes up in the block, the faster it will be chosen by a miner to include it in their next block.

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#300

  1. An SPV is a program that simply connects to a random full node to get information from the blockchain. A full node actually participates in validating the blockchain, either through verification or mining.

  2. It’s being put in the mempool, where it waits for a miner to add it to a block,

  3. They take the transactions with the highest fees.

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#301

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

For smartphones devices a simplified payment verification system runs to allow them to operate without the full blockchain stored locally. SPV nodes , infact, download the block headers only and exclude the transactions of each block. … This is why, to be completely sure about a transaction, only a full node can be used.

What does it mean when a transaction is broadcasted?

The bitcoin daemon makes the transaction with the source address and the destination address then broadcasts the transaction to the network. The Bitcoin miners confirm the transaction and include it in the next(s) blockchain blocks. The miners receive the transaction fee as the reward for this.

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

When you make a bitcoin transaction, it goes into a pool of unconfirmed transactions. Then, bitcoin miners select your transaction and place it into a block of transactions. The miner solves a special mathematical puzzle called a proof of work. … They encourage the miner to select your transaction

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