Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#522
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    nodes are computers on the network but can’t produce block and SPV are nodes that do not have the entire blockchain. However, an SPV can query information from a full node to access the blockchain records.
  2. What does it mean when a transaction is broadcasted?
    The transaction is shared to the nodes on the network, and added to the mempool to be accepted by miners.
  3. How does a miner pick which transactions that gets added to the next block?
    Miners are incentivized to accepted transaction with the highest transaction fee per bit.
#523
  1. SPV store a portion. They don’t store all utxo data
  2. A node shares transactions with other full nodes
  3. Typically they would choose transactions from the mempool that have highest fees added
#524
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV does not keep a copy of the full blockchain and will query full nodes to get transaction information that it requires only.
  2. What does it mean when a transaction is broadcasted?
    A broadcasted transaction is when a wallet informs the network of a new transaction,
  3. How does a miner pick which transactions that gets added to the next block?
    A minor will pick transactions that offer the highest fees. The winning miner will receive the block reward plus fees for mining.
#525

  1. SPV is a wallet that doesn’t store the blockchain locally however it trusts mulitple nodes to receive data from. A full node has the entire copy of the blockchain stored.

  2. It means it has been propagated to every node/ appended to the blockchain.

  3. A miner picks the transaction with the highest fees.

#526

The difference between a SPV and a full node is that a full node has a full copy of the blockchain and a SPV only queries transactions. A transaction that is broadcasted is a public key that everyone can see but can only be read with the private key. A miner will pick transactions with the higher fees and must be the first one to hash with a lower nonce hash to be able to get to add it to the next block.

#527

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    a) SPV are not connected or contain all information of the blockchain and then need to connect with the full node to verify data.

  2. What does it mean when a transaction is broadcasted?
    Its when transactions are propagated to all other nodes within the network.

  3. How does a miner pick which transactions that gets added to the next block?
    Miners choose transactions first with the highest fee from the mempool.

#528

  1. SPVs dont store all the information, they need to communicate with a node.

  2. All the transactions get propagated then the block gets distributed across the network

  3. Miners pick the highest transaction fees for smallest bytes

#529

  1. SPVs are nodes that do not have a complete version of the blockchain. They just connect to other nodes that do, and trust their information. i.e a small node on a mobile phone.

  2. It means that some nodes are accepting it as a temporary version of the truth.

  3. Usually those with highest fees will be chosen first and added, and then the lower fee ones.

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#530

1: An SPV is an intermediary between a wallet and a full node. It does not have a copy of the blockchain but submits and receives transactions through an offsite node.

2: When transaction is broadcasted when it is sent out to nodes and miners on the blockchain.

3: A miner will pick the next transaction based on the size of the TX fees and might also favor blocks which are in closer proximity.

#531
  1. What is the difference between a SPV (simplified payment verification) and a full node?

SPVs do not store the entire blockchain, they usually only store transactions that are relevant to their purpose.

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

When a transaction is broadcasted, it is put into the mempool for miners to add to their pending blocks in hopes of adding it to the blockchain.

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

Miners select a group of transactions from the mempool and prioritize the transactions with the highest transaction fees first.

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#532
  1. An SPV is an app wallet (simplified payment verification) and not a full node. The SPV query’s the node for desired info. It does not have a full version of the blockchain so it rely s on a network node.
  2. When a node receives an accepted block, it relays that block to the rest of the node network. Propagation?
  3. The miner will choose the block/unconfirmed transactions from the mempool that has the highest fee to fulfill their incentive for their investment of energy. Sat/byte ratio.
#533

  1. An SPV does not store the full version of the Blockchain, they just connect to a fullnode and stream their version of the blockchain. So a SPV can still validate txs, but just by connecting to another fullnode and trusting their version of the blockchain.

  2. That a UTXO is made into a transaction by a wallet and then send to the fullnodes, which put the txs into the mempool, where they wait for the miners to be picked up. The miners prefer txs with high transaction fees, bc thats part of their reward.

  3. He will pick the transactions from the mempool with the highest txfees. So txs with higher fees get appended to the blockchain first. Highest Sats/bits rate.

#534
  1. SPV wallets depend on the data from a full node because they don’t have a copy of the full blockchain.
  2. It is sent into mempool where miners pick the best suited transactions
    3: Most likely the most profitable ones which then get mined and added to the blockchain after guessing the correct nonce whose difficulty depends on the height target (determined by the number of miners).
#535

  1. An SPV does not have the full version of the blockchain, and hence relies on full nodes for information about transations. SPV’s are typically used on mobiledevices with limited cpu/memory capacity

  2. A transaction broadcast means the it is sent to peers on the netwok, whon in turn send it to their peers and so on and so forth - to use Ivans way of expression ;o)

  3. The miner picks the transactions with the highest transaction fees

#536

1/ The SPV does not have the full blockchain starting from the genesis block and a full node does.
2/ When a miner get a hash below the target, they broadcast the latest blockchain to the rest of the nodes
3/ A minor picks the transaction that offer the most reward

#537
  1. SPV is a way to verify a transaction in a simple way, without downloading the entire blockchain, but only the head blocks.
  2. A transaction that has been sent means that it has arrived at all the nodes on the blockchain.
  3. Miners choose transactions with high fees first and then those with lower fees.
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#538
  1. What is the difference between a SPV (simplified payment verification) and a full node?

The SPV only have a subset of transactions (your transactions) and a full node have all transactions.

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

It mean the transaction is propagated to network.

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

The miner pick the transactions from the mempool and the ones that have highest fees.

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#539
  1. A SPV must query a node for information on the ledger.
  2. The bits of a transaction are sent to nodes in proximity.
  3. Miners select a combination of transaction which they believe they have a high likelihood of maximizing profit from fees and solving the puzzle before another miner.
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#540
  1. What is the difference between a SPV (simplified payment verification) and a full node? >> SPVs do not have stored the full blockchain in comparison to full notes
  2. What does it mean when a transaction is broadcasted? >> it is send to the notes and is getting stored in their mempool
  3. How does a miner pick which transactions that gets added to the next block? >> The higher the fee, the earlier the transaction will get mined and do confirmed with a valid block
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#541

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A full node has a complete list of all transactions and is constantly updating and listening for transactions, while a SPV must connect to an node to retrieve and validate information.

  2. What does it mean when a transaction is broadcasted?
    It is sent to nodes that either confirm it is the longest chain with the most proof of work, or rejects transactions being broadcast to it.

  3. How does a miner pick which transactions that gets added to the next block?
    Miners pick transactioins that pay the highest transaction fee.