Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#382

  1. An SPV does not store an updated copy of the blockchain so needs to connect to a node for info. A full node does have a copy.

  2. Where a transaction is propogated to all nodes.

  3. Miners usually pick the txns with highest fees first then works down to lowest fees until block is full, then starts again for next block.

#383
  1. node is a node having full blockchain plus mempool while SPV is not a node it needs to contact node to check and verify the blockchain - a method for verifying if particular transactions are included in a blockchain without having or downloading the entire blockchain, mainly happens on mobile blochchain clients
  2. broadcasted - send by the wallet through the network in order to be propagated to every node in the network
  3. by highest transaction fee Satoshis per byte
#384

  1. And SPV must query a node in order to receive information about UTXOs, as SPVs do not have a full copy of the blockchain.

  2. It means that a version of the blockchain with the latest block in which a transaction lives is being propagated between nodes.

  3. Miners pick the highest fee transactions to add them into the block.

#385

Not immediately visible on the blockchain. First it’s visible in the mempool (zero confirmation) miners will pick transactions from this mempool to group them into a block in the blockchain. The speed will depend on your fee

#386

1. What is the difference between a SPV (simplified payment verification) and a full node?
An SPV dont have all the information of a full node. So the SPV need to verify its information with a fullnode.

2. What does it mean when a transaction is broadcasted?
That it is send out to the rest of the network.

3. How does a miner pick which transactions that gets added to the next block?
They pick them out of the mempool based on the transaction fees.

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#387

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A full node contains a full copy of the ledger whereby a SPV only query’s a full node and does not have a full copy of the ledger.

  2. What does it mean when a transaction is broadcasted?
    It means that the transactions has been send to the blockchain for confirmation.

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

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#388
  1. A SPV is a simple wallet that only has the key to sign transactions while a full node is a wallet that also reads and stores the blockchain.
  2. A transaction that is spread to all nodes in a network.
  3. Miners will pick the transactions with the highest fee first.
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#389

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

A SVP runs the private key but it need to ask all nodes available for verifications until it gets enough confirmations to tell someone’s balance . A full node runs the keys, a full copy of the blockchain.

2. What does it mean when a transaction is broadcasted?
Transactions are propagated among nodes

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

Miners try to solve transaction puzzle searching in mempool . It will emphasis the ones with higher fees ( S/b ratio)

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#390

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A. An SPV does not contain the full copy of the blockchain and must connect to a node to get the information.

  2. What does it mean when a transaction is broadcasted?
    A. It means that transaction are propagated to all of the nodes.

  3. How does a miner pick which transactions that gets added to the next block?
    A. Miners pick the transaction from the mempool with the highest fees.

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#391

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV nodes download the block header only and exclude the transactions of each block. They rely on peers to provide part of the blockchain when necessary and therefore this can create a privacy risk. Full nodes on the other hand keep a complete copy of all the bitcoin blockchain with all the transactions. A full node gives you complete independence from any external resource.

  2. What does it mean when a transaction is broadcasted?
    The transaction has been sent to the network and is now visible on the blockchain.

  3. How does a miner pick which transactions that gets added to the next block?
    The miner picks the transaction offering the highest fee.

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#392
  1. An SPV does not use the entire node or blockchain to virify a transaction . It uses the current block.
  2. when a transaction is broadcasted it is shared with the other nodes
  3. miners pick the transaction with the higher fee to maximize profit.
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#393
  1. An SPV doesn’t contain a full version of the blockchain. A full node does.
  2. Broadcasted means sent out to other nodes in the network
  3. The miner will select the transactions with the largest fees attached to them, so that if they solve the block they will be rewarded more than if they selected low fee transactions.
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#394

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV is a lighter version of a full node. A full node has a copy of the blockchain at all times while an SPV does not own a copy of the blockchain. An SPV can only check/analyze the blockchain by looking at the connected nodes copy of blockchain (SPV is a spectator of an full node)

  2. What does it mean when a transaction is broadcasted?
    The transaction is sent to all connected nodes, that then gets analyzed by the nodes and they see if the transactions is following the rules and is correct. If the transaction is false they throw it away. If it’s correct they pass it forward by sending (broadcasting) it to the next connected nodes (and store it in the mempool) until it’s “found” by a miner node that takes the transaction and engrains it into the block chain.

  3. How does a miner pick which transactions that gets added to the next block?
    By looking at what transaction has the biggest fee usually. If a transactions contains a lot of outputs and inputs it contains more data that requiers space which mean less transactions fit into the block (max size of a block 1MB) (less transactions= less fees). So to take a bigger transactions require higer fees to be profitable.
    (and i’m guessing that a miner can choose a transaction with a smaller fee if there is only just enough space left in the block for a small transaction, so even if the other transaction has a higer fee it’s impossible to get it to fit at that time into the block because it contains too much data)

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#395

  1. SPV is a system that enables wallets to verify that a transaction has been included in a Bitcoin block without downloading the entire blockchain. The main difference with a full node is that a full node keeps a copy of the entire blockchain with all the transactions that occurred, while SPVs download the block headers only and exclude the transactions of each block. When necessary, SPVs request information about the blockchain from full nodes.

  2. A transaction is broadcast when it is sent to and shared with the entire Bitcoin network.

  3. They choose the transactions that pay the highest fees.

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#396
  1. SPV only holds parts of the blockchain and validates their own transactions which is connected to many different nodes, Whereas a full node holds the entire blockchain.
  2. When broadcasted it means the transaction is broadcasted to the bitcoin network which in turn to the nodes.
  3. Miners will try to pick up the transactions with the highest transaction fees which is more profitable.
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#397

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    It cannot hold the entire blockchain, but can rather pull from a trusted node.

  2. What does it mean when a transaction is broadcasted?
    It is sent to the network and the nodes pick it up to add to their mempool.

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

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#398

A SPV will not a have full copy of the blockchain like a node will.

The nodes share the transaction on the blockchain network as completed.

The miners pick the transaction with the highest fee to lowest bytes used in the tranaction

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#399

What is the difference between a SPV (simplified payment verification) and a full node?
A: SPV does not have the complete version of the blockchain. A full node does.

What does it mean when a transaction is broadcasted?
A: It means that a transaction is sent to the nodes, who verify the transaction and put it in the mempool

How does a miner pick which transactions that gets added to the next block?
A: miners pick the transactions with the highest fees because this will give them the highest income

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#400
  1. The SPV doesn’t have the full copy of the blockchain and it has to trust to a full node.
  2. Signed transaction is propagated to all nodes in the network.
  3. Most often miner picks the transactions with the highest fees, but sometimes those with the lowest size.
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#401

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV is a device that does not store the whole blockchain and therefore connect to a full node for trust.
    a full Node is a device thats stores the full blockchain.

  2. What does it mean when a transaction is broadcasted?
    Wallet broadcast the UTXO to all nodes on the network for consencus.

  3. How does a miner pick which transactions that gets added to the next block?
    The Miner picks Tx from mempool with the highest TX fee based on Size.

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