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SPV doesn’t store the whole copy of a blockchain due to the memory limits (for instance a mobile phone). It needs to connect to a full node (a computer) to get all the data.
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It means that it had been propagated to the whole network (all blockchain)
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Usually by choosing the highest fee
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an SPV is just a portion of the full node, it contains a shorter version with less data and memory required for storage, the Full node contains all the Tx from the genesis block to the current one.
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the tx is broadcasted to the network by the wallet through miners when then want to build blocks
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The miners will choose the highest fee and the closest tx to them on the net
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A SPV doesn’t have a copy of the full blockchain so must rely on a full node to access the blockchain and it’s contents.
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A broadcasted transaction means that it is being propagated through the nodes on the network to be added to a block.
3.Miners are awarded the Block reward and the Tx fees of each TX in their block. The highest the Tx fee the more likely the Tx is to be chosen.
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- SPV wallets don’t store all UTXO data like node.
- That’s mean that transaction is propagates thru the other nodes in the network.
- The miners pick transactions from the mempool which has a higher fees.
- SVP’s do not contain the blockchain data and need to get this information from a full node.
- The transaction is shared between all the nodes and therefore is confirmed.
- They pick the one with the highest fees.
- Full nodes store the entire blockchain while SPVs do not and they will instead connect with a full node to validate a transaction.
- That transaction is added to the mempool and is ready to get picked up by a miner.
- By the higher the transaction fee.
- Full node has a full copy of the blockchain, the SPV does not have a full copy, but knows how to query network to verify payment
- All nodes will get a copy of the new block that contains this transaction.
- Miner picks transactions with the highest fee.
- In SPV the UTXOs are not stored. So the SPV asks for the UTXOs it can spend from multiple nodes.
- When a transaction is broadcast-ed, it is propagated through the network i.e it is stored in the Mempool of various nodes.
- The miner chooses transactions from the Mempool with the highest transaction fees (sathosi/bytes).
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A SPV is a small node which unlike a full node doesn’t have an entire copy of the blockchain.
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It means that the wallet has send out a transaction and that all nods are informed. If the transaction makes sense, then the transaction goes to the mempol and will wait there until it will be picked up by a miner and put into a block and finally ( if not chosen by a stale block ) gets confirmed.
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A miner chose the transactions with the highest fees and the smallest bit seize to fill the block with many transactions as possible.
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An SPV does not keep a copy of the blockchain and communicated with the blockchain via a full node.
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When a transaction is broadcasted, it is sent to a node which in turn will propagate it to other nodes throughout the network.
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A miner will pick a transaction that has the highest satoshi to byte ratio. Meaning a miner will choose a transaction with the highest fees for the smallest amount of data. A miner will do this because a block size is limited so it’s advantagous to get the highest fees for that limited space.
- What is the difference between a SPV (simplified payment verification) and a full node?
An SPV is a partial blockchain, more commonly associated with mobile phones or devices with limited storage that can’t hold the full blockchain.
A Node is a device that holds a complete blockchain. Which the SPVs can ping for confirmations.
- What does it mean when a transaction is broadcasted?
When a transaction is made between 2 wallets it is broadcasted to the network. This means the transaction is sent to nodes for confirmation. The nodes will trace authenticity of the UTXOs and confirm them to the mempool or ignore them.
- How does a miner pick which transactions that gets added to the next block?
Miners can hand select transactions if they want to, however the inherent incentive of mining is to fit as many transactions as you can in a block, starting with transactions of higher sats/bite of fees. Miners do this to profit on electricity costs.
Homework on Bitcoin Ecosystem - Questions
1- What is the difference between a SPV (simplified payment verification) and a full node?
Spv are nodes that do not have the entire blockchain.
You can run a Spv this is basically a small node which trust a full node.
Example when you use your mobile you can not run a full node, it’s to heavy but you want to be able to do transactions then you need to trust a full node with a small one a spv.
2 -What does it mean when a transaction is broadcasted?
It is send to the blockchain after your wallet signed and constructed the transaction.
3- How does a miner pick which transactions that gets added to the next block?
Miners pick often the transactions with the highest transaction fees.
- What is the difference between a SPV (simplified payment verification) and a full node?
- SPV don’t contain the fill blockchain data. The data will be pulled from a full node.
This is to make lighweight apps who don’t need to store the entire blockchain or have the capability to.
- What does it mean when a transaction is broadcasted?
- It means that a node share information with the other nodes.
- How does a miner pick which transactions that gets added to the next block?
- The miner chose the trancations with the higest fee pr. KB. In this way they can optimize the profit made from mining the block.
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The difference between the two are that an SPV does not store a copy of the updated BC. It relies on a full node to query for an updated BC. The node stores the entire BC.
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When a Tx is broadcasted it is understood to be initiated for a miner to observe and add into the next block (if it is applicable).
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A miner picks which Txs get added to the next block by observing the Tx fees. Higher fees are more likely to be accepted by the miner into the next block.
- What is the difference between a SPV (simplified payment verification) and a full node?
An SPV does not store a copy of the entire blockchain, instead it queries a full node for required data.
- What does it mean when a transaction is broadcasted?
It means the transaction has been propagated on the blockchain and is visible
- How does a miner pick which transactions that gets added to the next block?
A miner will generally choose the transaction with the highest fees from the mempool.
What is the difference between a SPV (simplified payment verification) and a full node?
A SPV node carries a “lite” version of the whole blockchain for mobile applications, this does not store the whole blockchain.
**What does it mean when a transaction is broadcasted?**
To be broadcast means it has been sent to the network, sent to the mempool effectively to be picked up by a miner.
**How does a miner pick which transactions that gets added to the next block?**
A miner picks the next transactions by the fees associated with each, the higher the fee, the more likely it will be chosen.
- An SPV wallet does not contain the full blockchain and must query a node for balances.
- The transaction is propagated to other nodes and added to their mempools.
- They prioritize transactions with higher fees.
- An SPV is a wallet that communicates with the nearest full node to read the blockchain.
- When a transaction is broadcasted it is sent to full nodes’ mempool to wait for a miner to pick it to add it to the blockchain.
- A miner will most likely pick the TX’s with the highest fees first for max profits.
An SPV does not have a full copy of the blockchain stored, it instead relies on a nearby node to recieve and send information to the blockchain.
A node has a local copy of the blockchain stored.
When a wallet in an SPV signs a transaction with its private key it will send the information to the node for the node to broadcast this to the network. And when an SPV wants to know how many utxo’s its key can spend it will communicate with the node to get this information.
A node will constantly be looking at the network and when it picks up a transaction (such as from an SPV) it will add it to the mempool. Something an SPV will not do. A node will also broadcast transactions to other nodes so they may also add these transactions to the mempool in their local copy of the blockchain & broadcast.
The final difference between a node and an SPV is that a full node will also add blocks which a miner has built to its copy of the blockchain once it has validated the block & broadcast this information, meaning a full node will update new blocks onto the blockchain.
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When a transaction is broadcast it means that a wallet has created a transaction using utxo(s) assigned to its private key as the input to create an output. Once this wallet has signed the transaction using its private key it then sends this transaction to nodes on the network which add the transaction to the mempool. It is the sharing of this transaction which is deemed as it being broadcasted.
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A miner will pick which transactions are added to the next block from a financial/incentive perspective. Each transaction depending on how simple or complex it is (determined by the number of inputs and outputs) will take up a certain number of block space measured in bytes. The wallet will also suggest/assign a fee to the transaction whereby the miner is assigned a certain percentage of the utxo to its private key for adding the transaction to the data of the block it is creating (this is only done once its block is validated by completing the POW puzzle).
If there number of transactions in the mempool take up more space than is available in the block, the miner will prioritise transactions which offer the best ratio of fees/bytes. This is because the miners have used resources (computing power => electricity => money) to solve the cryptographic puzzle of the algorithm and therefore aiming to receive a value (in the form of a utxo) which can be converted into a profit. To ensure the maximum amount of financial gain a miner will look to pick up the highest amount of fees in a block as possible, especially when you consider that they are not guaranteed to successfully mine a block maximising the financial opportunity is essential to ensure the highest R:R.
It should also be noted that miners also select which transactions based on the mempool of the local nodes, if the mempool differs between nodes when the transactions are selected it may be that the miner simply selects transactions from local nodes only meaning location of a node will also be a factor when a miner selects its transactions.
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Homework on Bitcoin Ecosystem - Questions
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What is the difference between a SPV (simplified payment verification) and a full node?
A SPV doesn’t store a copy the whole blockchain but querys nodes to get the needed infos while nodes always store the newest version of the blockchain. -
What does it mean when a transaction is broadcasted?
When a transaction is broadcasted it is sent from your wallet to all the nodes in the network and then added to the mempool -
How does a miner pick which transactions that gets added to the next block?
He always chooses the transaction with the highest sat/b ratio first to earn as much as possible because one block can only contain a certain amount of bytes.