Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#562
  • What is the difference between a SPV (simplified payment verification) and a full node?
    Answer: SPV communicates with full nodes and may contains a summarized version of the blockchain. Full Nodes contain the full blockchain.
  • What does it mean when a transaction is broadcasted? Communicated/sent to the fullnodes across the network of nodes
  • How does a miner pick which transactions that gets added to the next block? Looks into the Mempool and choose the blocks with the highest transaction fees.
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#563
  1. The difference between an SPV (simplified payment verification) and a full node is such that an SPV is a node that does’t have the entire blockchain on it and requires a full node to access the full blockchain; it also holds transactions relative to the SPV address.
  2. When a transaction is broadcasted it is sent over the network from node to node to be validated and then sent to the mempool to then be put onto a blockchain.
  3. A miner picks the transactions with the highest fee with regard to Sat/Byte; what will take up the least space on a block with the highest yield in fees.
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#564
  1. SPV does not have a copy of the blockchain, the node does.
  2. That the information is being spread to all of the nodes.
  3. It choose the ones with highest tx fees from the mempool first.
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#565

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Node stores whole list of transactions, while SPV stores only relevant addresses.

  2. What does it mean when a transaction is broadcasted?
    It flows though all the nodes in the bitcoin network.

  3. How does a miner pick which transactions that gets added to the next block?
    It selects the transaction with high tx fees from the mempool.

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#566
  1. SPV ( SIMPLIFY PAYMENT VERIFICATION ) is what you will find in a cellphone app or dapp and a full node is an actual massive computer placed locally
  2. When your transaction is broadcast to the node network or gosslped.
    3.A miner picks your transaction from the mempool , usually miners pick the higher fee transaction first as an incentive to them
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#567

  1. SPV doesn’t have a copy of blockchain and requires to be connected to the node to receive the information, whereas node has entire copy of the blockchain to verify correctness of the transactions.

  2. The transaction flows all across the nodes in the bitcoin network.

  3. Miner selects transaction with highest transaction fee measured in (Satoshi/Byte).

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#568

  • What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV does not have a full version of the blockchain but can communicate transactions to be put into the mempool. A full node has a complete copy of the blockchain.

  • What does it mean when a transaction is broadcasted?
    A wallet broadcasts a transaction in the form of an Unspent Transaction Output (UTXO) to a destination is based on the public key of another wallet. This UTXO is placed in the mempool to be confirmed by a miner.

  • How does a miner pick which transactions that gets added to the next block?
    Miners choose Transactions from the mempool, usually the ones with the higher fees receiving preference.

#569
  1. SPV do not have the whole blockchain as database stored (they query full nodes)
  2. It does mean the transaction is in the Blockchain and all nodes have accepted this certain version of the truth of the blockchain.
  3. Questions not really clear to me however two answer are in my mind what could be meant:
    3.1. fee is depending on Bytes, the more bytes the fees. So miners are prone to take transactions which are “heavier” to earn a higher fee
    3.2. miners have to guess nonce to create a hash below the target (which is a number).
#570

  1. Simplified payment verification (SPV) is a wallet that only contain private keys and do not contain a full
    copy of the blockchain…
    A full node contains a full copy of the blockchain.

  2. A transaction is sent from a wallet to a computer which then broadcasts the transaction to the other
    nodes on the internet.

  3. By taking the hash from the previous block then together with the transaction hash from the
    mempool adding a random nonce which produces a hash that is less than the target difficulty.
    The miner usually picks the transaction with the highest fee for greater profit.

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#571

  1. A full node contains a full blockchain ledger and SPV at the same time doesn’t. If SPV user wants to make transaction it gives query to full nod to get latest version of blockchain.

  2. Broadcasted means, that transaction was distributed among the nods.

  3. It takes transactions from the mempool. Normally, transactions with the highes fee are selected first.

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#572

  1. A full node contains the complete blockchain. And SPV only validates your own transactions and connects to other full nodes.

  2. A transaction is considered valid and sent to all the nodes in the network.

  3. A miner will typically pick transactions with the highest fees which will contribute to a larger block reward.

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#573
  1. What is the difference between a SPV (simplified payment verification) and a full node?

SPV can generate TX connecting to necessary nodes. holds data as necessary
Full Node can only view entire TX as updated.

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

Emanates from wallet or a SVP to mempool and later on blockchain

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

incentives. probably chasing higher fees first.

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#574

  1. SPVs are dependent on full nodes to fetch updates in the blockchain. Since they do not store a complete copy of the blockchain they cannot validate the current state of the chain themselves. While SPV wallets don’t necessarily care about the validity of other transactions in the block, they make sure by querying an array of different full nodes, that their own transactions are valid and are being confirmed by more mined blocks.

  2. After a wallet has signed a transaction with its private key it will forward it to a list of know full nodes in the network. These nodes will further propagate the transaction, if they find it to be valid, to their known nodes. This results in the transaction being broadcasted across the entirety of the network.

  3. Miners will usually chose the transactions that will result in the largest amount of transaction fees they will receive if they can solve the cryptographic puzzle and have their block appended to the blockchain.

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#575

  1. SPV will need to query the blockchain because it is not a full node.

  2. The transaction is propagated throughout the network.

  3. The miner will pick the transaction with the highest fee.

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#576

What is the difference between a SPV (simplified payment verification) and a full node?
SPV(s) do not have a full version of the blockchain. They require a node to access the full blockchain. They hold transactions for the respective address.

Full nodes include the full blockchain.

What does it mean when a transaction is broadcasted?
A transaction is sent or communicated to nodes across the network.

How does a miner pick which transactions that gets added to the next block?
Typically the miner picks transactions with the highest transaction fees. the picking process resolves around incentives.

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#577

  1. SPVs do not store all UTXO data(the whole block chain) so they must ask a node that does for information such as how much btc is allotted to a certain private key through UTXOs.

  2. When a transaction is broadcasted it is released into the network from a wallet and distributed around by nodes in the mempool until they can be confirmed in a new block by a miner at which point the become confirmed transactions.

  3. Miners will pick which transactions are added to the next block based on the transaction fees so that they may make the most money off of the block.

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#578
  1. An SPV contains only the headers of the most current block. A full node has a copy of the entire blockchain.
  2. The UTXOs from a wallet with signed transactions are sent out to verification nodes to be added to the mempool.
  3. transactions paying the highest fee, down to the lowest fee.
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#579

  • What is the difference between a SPV (simplified payment verification) and a full node?
    SPV wallets don’t store all UTXO data and have to get additional data from a full node.

  • What does it mean when a transaction is broadcasted?
    A transaction is sent out to be propagated through the network.

  • How does a miner pick which transactions that gets added to the next block?
    Miners choose the transactions with the highest fees first.

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#580

  1. An SPV only contains a part of the blockchain and requires a full node to get the entire blockchain

  2. The transaction has spread to all nodes.

  3. The block with the highest fees gets picked up first (satoshis per kb)

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#581
  1. a spv will query a node for the blockchain info because it does not store it, anode stores a copy of the blockchain.
  2. it means that your wallet digitally signed the tx and the nodes excepted it as valid, it will then be broadcasted [put in the mempool].
  3. the tx with the highest fee.
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