Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#402

  1. That SPV does not have the entire blockchain and Full node does have the complete version of the blockchain

  2. Means the transactions is spread around all the nodes.

  3. Miners prefer the transactions with the highest fees and KB.

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#403
  • What is the difference between a SPV (simplified payment verification) and a full node?
    spv wallet don’t store all UTXO data and must get data from full node.
  • What does it mean when a transaction is broadcasted?
    the node accepts a news transaction and propagates it through the network.
  • How does a miner pick which transactions that gets added to the next block?
    by guessing the nonce.
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#404
  1. The difference between SPVs and full nodes lies in the fact that Full nodes keep a complete copy of the blockchain and they are responsible of autonomously performing the verification process for all transactions, while SPV nodes only store information about block headers and don’t have (or need) to store the entire blockchain. This means that while Full nodes have greater independency when compared to SPVs (which may rely on other nodes to find information about transactions when they need them) they also require more storage space, time and costs.
  2. Broadcasting a transaction means spreading it throughout the network of nodes, making it possible to have it verified and validated before it is put into the mempool waiting for a miner to put it in a block.
  3. Miners look into a mempool (their own or someone else’s) to identify the ones with the highest transaction fees, in order to make more profit out of the mining process.
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#405

  1. A SPV do not hold the entire blockchain ledger locally as a node does. It queries a full node when it needs to access the full blockchain.

  2. A transaction is broadcasted when it is distributed in the whole network and into the mempool.

  3. A miner usually pick the transactions which has the highest fees (profit incentive).

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#406

  1. An SPV doesn’t store a full copy of the blockchain, a node does. An SPV needs to access a full node to query any transactions

  2. A transaction is sent to a node to be propagated through the network

  3. A miner chooses the transactions with the highest fess

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#407

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV, Simplified Payment Verification: method to verify if a transaction is included in a block without downloading entire blockchain.

  2. What does it mean when a transaction is broadcasted?
    In Blockchain netwotk, because it is a peer-to-peer network, once a node picks up information, it will broadcast it to its nearest neighbour until all nodes in the network gets the same information.

  3. How does a miner pick which transactions that gets added to the next block?
    Miners pickup transactions from the mempool. They usually go for transactions with bigger transaction fees or incentives.

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#408

1 - spv’s - are nodes that are small and not full nodes and the blockchain on those full nodes - they trust full nodes

2 - it is sent out from a wallet for the netwprk to confirm and provide consensus

3 - by incentive - the pick the transaction with the highest fee form the mempool

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#409
  1. SPV Don´t have copy of the complete blockchain therefore have to attach to a full node in order to make transactions. Example of an SPV would be your phone???
  2. A transaction being broadcasted means that one full node shares that transaction with other full nodes, giving consensus to that transaction.
  3. Miner will pick transaction with the highest fee, which depends on the size (kb) of the transaction
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#410
  1. Spv does not have all the blockcahin, it is a small node.
  2. Transaction is being sent to all other nodes.
  3. Highest transaction fee
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#411
  1. SPV would be a mobile device that not’s a full node and will communicate to a full node to verify that block
  2. The transaction is broadcast or sent to all the nodes to be confirmed and validated
  3. Miners will start to verify/validate transactions with the highest fees
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#412
  1. An SPV is a small node which does not contain a full copy of the blockchain. An SPV would be used in a mobile application where there is not enough storage for the full blockchain.
  2. The transaction is sent to nodes in the network for further confirmation.
  3. Miners will pick the transactions with the greatest fees.
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#413

  1. A full node holds and continues to update the blockchain in its entirety. An SPV holds transaction data that is only relevant to the addresses it is associated with. An SPV must still contact a node to propagate transactions throughout the network.

  2. When a transaction is broadcasted it means it is being sent out to the nodes on the network.

  3. A miner can select the transactions they want in the next block by looking at the mempool. Typically they will choose the transactions that have the highest fee to bit ratio, because it means they will be paid the maximum amount for their work once they find the next block.

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#414

SPV vs Node. A Node contains the full blockchain in which it is locally stored. A SPV trusts that a nodes blockchain is true and does not require to locally store the full blockchain.

When a transaction is broadcasted, it is placed into the mempool of the nodes waiting to be picked up by miners to be processed in the blocks.

Miners pick transactions with the highest fees in the mempool due to being incentivized by transaction fees that they receive from all transactions per block produced.

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#415
  1. What is the difference between a SPV (simplified payment verification) and a full node?

A SPV doesn’t have the blockchain in storage, instead it queries many nodes that are geographically close by uses the version that has been confirmed most of the times.

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

It means that the wallet has sent a transaction so that the nodes can add it to their mempool respectively.

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

They choose the transactions with the highest fees.

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#416

  1. An SPV (commonly found in a mobile/paper wallet) does not contain the full blockchain which is roughly 200GB. Rather it relies on communication with a full node in order to verify the entire blockchain.

  2. It means that a given wallet has packaged either a single or multiple UTXOs and sent them to another address, so as to be propagated amongst the nodes and added to the mempool.

  3. Miners are incentivized, meaning they are attracted to transactions with the highest fees and smallest number of inputs/outputs. Simply put, Sats/Byte.

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#417
  1. The nodes have all the blockchain information and the SPV only has the transaction info.
  2. The information is spread to the nodes.
  3. They choose the transaction based on fees.
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#418

First the miner will fill his block with transanctions. He will probably pick transactions based on highest amount of fee first. Only at the end he needs to guess a nonce, so that if he hashes the block, the hash is below the target to be accepted by the network

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#419

  1. The difference between a SPV and a full node is that an SPV must access, or talk to a nearby full node in order to access the full blockchain whereas the full node has a complete copy of the blockchain stored locally.

  2. When a transaction is broadcast, it is propagated by a node to all nearby nodes by placing it in the mempool. Eventually a miner will pick it up and add it to a block which gets confirmed and appended to the blockchain.

  3. A miner picks transactions out of the mempool based on the ones with the highest fees in the “fee market.”

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#420

  1. SPV keeps partial version of the blockchain on it which is relevant to the wallet but needs to connect to a node to get the full version and confirmation.

  2. It get propagated to the network of nodes.

  3. It comnects to a node which has a mempool ornits own mempool and chooses the transaction with the highest reward or fee

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#421

  1. An SPV doesn’t store the full blockchain, but queries amd rusts a full node for blockchain access instead.

  2. It has been propagated through the nodes in the network.

  3. Transactions with higher transactions fees are picked first.

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