Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#442

1 - SPV is used mostly in mobile or light wallet where there isn’t enough space to keep a copy of the entire blockchain. An SPV will only get access to UTXOs received by your address, and any output from your wallet.

2 - Transaction are broadcasted to all nodes to secure the network.

3 - Miners choose transactions from the mempool that have the highest sat/b fee.

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#443

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

  1. An SPV (simplified payment verification) is a wallet that does not contain the full blockchain and so can’t verify the UTXO. In order to sent a transaction it has to communicate with a full node.

What does it mean when a transaction is broadcasted?
2. The transaction is added to a mempool waiting to be processed by a miner.

How does a miner pick which transactions that gets added to the next block?
3. Usually based on the most expensive fees they will be paid for the transaction sat/kb.

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#444

A SPV doesn’t have the full blockchain, it has to query a full node to check for UTXOs.

It means that a transaction that was created by a wallet was send out to the nodes in the Bitcoin network, which will add it to their mempools.

The miner’s incentive is to earn BTC. So he looks through his node’s mempool and adds as many transaction as possible, favouring the ones with the highest transaction fees.

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#445

  1. SVP = A minor node i.e mobile phone. They can interogate the blockchain to see if transactions are included on the blockchain but cannot store the full blockchain as they do not have enough capacity. Full node = holds a copy of the blockchain locally and validates transactions

  2. This means that the transaction has now been sent out to all of the nodes on the network

  3. Miners usually pick the transaction with the biggest fee.

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#446
  1. SVC does not have the full copy of the blockchaind information in a sense it like a half of a node. Therefore it need to ask a full node to read the blockchain for them.
  2. Broadcasted means to sent information to the network of nodes
  3. Miners usually pick the transaction with higher fees from the mempool as they get to keep the fees as well as the block reward.
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#447
  1. SPV store transactions relevant to its addresses, full node stores the whole blockchain
  2. Every node will receive the transaction, and eventually it will be validated.
  3. The miner picks from the Mempool the transactions with the highest fees.
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#448

  1. The difference between an SPV and a full node is the SPV is like a node but it does not have the full blockchain on it. It will trust a full node when it wants to read the blockchain. An example of an SPV would be using your cell phone to perform crypto transactions.

  2. A transaction is broadcasted out to the network when a wallet sends out a transaction to the nodes after the transaction is signed with your private keys.

  3. A miner picks the transactions to add to the block by how simple they are and the ones with less UTXO’s. This will take up less space in the mining process thus reducing costs which will increase profit.

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#449
  1. A full node has the entire copy of the blockchain, verify blocks and transactions are correct, while the SPV does not store the copy of the blockchain but just connects to a full node to get the information needed, which are transactions relevant to its addresses,
  2. When a block with different transactions is added to the blockchain, a full node verifies and accepts the block and broadcasts its transactions to other full nodes through the network, which will result in one shared truth of the blockchain/transactions occurred.
  3. Miners picks the transactions with the highest transaction fees (highest sat/B ratio) to be added to the next block. After having a list of transactions, it tries to guess the nounce and then hash the entire block with hash of previous block, the list of transactions and the nounce.
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#450
  1. Full node can be a computer who has full data of TX, and the SPV can be a phone or tablet simply cannot provide the full node capability, so they have to trust other Full nodes around them in order to prove their TX is complete or not.
  2. when the TX being broadcasted, it means all the other nodes has already received the TX data. and It will be awaited in the mempool to miners pick up their TX and creates a new blocks in the chain system.
  3. Miners will choose the highest fee TX from the mempool in order to get paid the most.
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#451

[quote=“ivan, post:1, topic:8444, full:true”]
Homework on Bitcoin Ecosystem - Questions

1. What is the difference between a SPV (simplified payment verification) and a full node? Some Node that using a short/imcomplete version of the Blockchain, they will refer to a full node to confirm the validity of the Transactiosn
2. What does it mean when a transaction is broadcasted? Per exemple when a Node receive a TX he will validate it and Send it to the other network NODE for them to verify the transaction before accepting them in their Mempool, where Miner will take the transaction to include on is Block and again broadcast it to the Blockchain and also broadcast to all NODE of the Network that the transaction have been added and NODE will took of their MEMPOOL.
3. How does a miner pick which transactions that gets added to the next block? He will read the Mempool of NODE ( or Himself as a NODE ) took the one that paid more fees and procedd the Puzzle once is block is full.

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#452

  1. The SPV (simplified payment verification) does not store a full copy of the blockchain but rather a simplified record of transactions relevant to its associated wallets and must query the nodes for completely accurate UTXO ledger data. A node is a computer on the network that stores a local copy of the entire blockchain and propagates updates to the blockchain to other nodes.

  2. A transaction is broadcasted when it has been signed by a wallet or SPV and transmitted to a node. The node will then validate the UTXOs, store the transaction data in the mempool, and propagate the transaction throughout the network to await confirmation from a miner.

  3. The miner is incentivized to pick the transactions with the highest sat/B ratio to collect the maximum profit from associated fees, and then packs as many transactions as mathematically possible into a block.

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#453

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

a SPV only have your private key and don’t run a node them self, a SPV sign tx and them forward it to a node.

What does it mean when a transaction is broadcasted?

The transaction is inside the mempool and is spreading over to all the nodes in the network.

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

The miner like the money, like all of us, so higher fees get served first.

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#454
  1. What is the difference between a SPV (simplified payment verification) and a full node?

The difference between an SPV and a full node is:
A full node has the following properties

  • Contains a complete copy of the blockchain
  • Verifies if transactions are valid
  • Propogates blockchain copies to other nodes
  • Passes transactions to miners

Whereas an SPV simply queries a trusted node on the blockchain

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

A transaction is broadcasted when it has been validated, encrypted and signed by a wallet, and is now ready to be sent to a nearby node.

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

A miner picks which transactions it adds to the next block by scanning its own, or a nearby nodes, mempool. The miner than usually chooses the transactions in that mempool with the highest transaction fees.

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#455

Q1A. An SPV does not contain a full copy of the blockchain and need to connect to a node to obtain it. SPV stores transactions relevant to its addresses but needs a node to send transactions.
Q2A. A transaction has been verified, propagated to other nodes and is now accepted as on the blockchain.
Q3A. A Miner will choose transactions from the mempool and the one with the highest fee will get added to the block first.

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#456
  1. An SPV is usually ra on a mobile device with low computation power. SPV are attached to a full node which have a full version of the blockchain. SPV they can only consult the Blockchain. They are “light nodes”.

2.A TX is broadcasted when it is transmitted through the network via the nodes which update their copies of the Blockchain

  1. The miner picks the transaction with higher transaction fees offered.
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#457

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV only stores some of the blockchain and uses the full node to query the information. A full node has the full copy of the blockchain

  2. What does it mean when a transaction is broadcasted?
    It means that it is sent from the wallet to the nodes, awaiting for it to be mined and added to the blockchain

  3. How does a miner pick which transactions that gets added to the next block?
    A miner chooses transactions based on their transaction fees as this will result in more profit for them

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#458
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPVs don’t store a complete version of the blockchain, just a necessary portion of the blockchain. To get data of blocks that the SPV doesn’t have they ask fill nodes.
  2. What does it mean when a transaction is broadcasted?
    It it sent by the wallet to surrounding nodes, and then propagated over the entire network.
  3. How does a miner pick which transactions that gets added to the next block?
    They look in the mempool (and usually pick transactions with higher fees).
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#459

  1. SPV is a smaller hardware that cannot possible store the whole blockchain data so it stores partial Data that is relevant and relies on nearby nodes that indeed hold the database.

  2. It means it been sent out and spread between all the nodes.

  3. The miners would usually pick the transactions with the highest fees.

#460

Thanks for writing your homework in spannish as well. This is very helpful for other students who speak spannish :ok_hand:

#461

An SPV is not really hardware, but some software that needs to query full nodes for data

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