Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#41
  1. a SPV don’t have it’s own version of the blockchain. a SPV connects to a full node which has the full version of the blockchain
  2. the transaction would be sent to all nodes in the network
  3. a miner takes tx out of the mempool. the miner takes the transaktions with the highest fee
#42

Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    -SPVs do not have the whole blockchain in their system like nodes do.
  2. What does it mean when a transaction is broadcasted?
    -Transaction is put in to the mempool for miners to verify
  3. How does a miner pick which transactions that gets added to the next block?
    -The txs which pays the highest fee
#43

  1. An SPV does not contain a full copy of the blockchain whereas a full node does.

  2. When a transaction is broadcasted it is sent to the mempool via the nodes.

  3. A miner picks which transactions get added to the next block by choosing transactions with the highest fee to data processing demand ratio because these will be the most profitable.

#44

  1. A SPV does maintain a full copy of the blockchain. It just queries other nodes on the network for blockhashes (to verify it has the longest chain) and can then link a transaction to a block.

  2. A transaction is broadcasted by being added to the mempool of a node, and is made available for other nodes in the network for inclusion into a future block.

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

#45

  1. SPV ( or light wallet ) does not contain the whole blockchain stored locally like a full node does. This space saving has benefits in that you can use SPV for mobile devices and other devices that don’t shine with their huge storage capabilities.

  2. A transaction is broadcasted across the whole network of nodes and ends up in the mempool. When a transaction is mined and appended to the blockchain in a form of block, it’s also broadcasted to the network ( nodes ) and it becomes a permanent record on the blockchain shared by all the full nodes and miners.

  3. A miner loves financial incentive and he will chose the transaction with the highest juiciest fees attached to it.

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#46
  1. A SPV is relying on a full node to read the blockchain. A SPV is used for application where there are limited memory such as a mobile phone.
  2. Then the node will spread the word of my transaction to others in the blockchain.
  3. The transaction that will be most sats/bites will be prioritated because a block has just a limetid space.
#47

SPV typically are ran on a smart phone and dont not have the full block chain as a node does.

A transaction is broadcasted when released to the mempool by a node.

Typically a miner will chose a transaction with the most bytes or satoshis to bytes. Miners get paid
by solving problems and transactions.

#48

  1. Instead of have the whole Blockchain information, a SPV request this information from a Full Node which has a copy of the entire Blockchain.

  2. That means that the transaction is being propagate in the entire network trough the nodes.

  3. Miners choose the highest transactions fees.

#49
  1. A SPV does not have all the UTXO’s and need a full node to get updated.
  2. That a transaction is added to the mempool of the nodes.
  3. He calculates the satoshi per bites and is picking the ones with the highest rewards first.
#50

Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node? The SPV has a reduced version of the full node. The SPV queries the Full Nodes for transactions. The full node has the entire block.
  2. What does it mean when a transaction is broadcasted? They check the network for UTXOs that you can spend, make transactions with inputs and outputs and they broadcast the transactions to the network. Nodes listen to transactions, propagate transactions, they have a version of the blockchain locally stored.
  3. How does a miner pick which transactions that gets added to the next block? Minors choose transactions with the highest fee. Minors are nodes but they also produce new blocks. The miner must guess the nonces, random numbers, and produce the hash that are less than target. The lower the target the higher the difficulty. After 6 confirmations before your payment so that you will be sure that your block is completely accepted.
#51

What is the difference between a SPV (simplified payment verification) and a full node?
An SPV (simplified payment verification) has a private key but does not have the entire blockchain. It can query the blockchain from a full node in order to ensure a transaction gets into a block and confirmed.

What does it mean when a transaction is broadcasted?
A broadcasted transaction is added to the mempool so miners can pick it up to include in a new block.

How does a miner pick which transactions that gets added to the next block?
A miner chooses transactions based on fees, i.e. higher satoshis/byte of data.

#52
  1. SPV does not store it’s own copy of the blockchain. It needs to check with a node to get the tx
    veryfied.
  2. When a tx is broadcasted, it is spread to all the nodes in the network.
  3. They pick the one with the highest transaction fees.
#53

1 .SPV (simple payment verification) views UTXO on the blockchain for a
particular private key for that device, it also can transact.
A full node keeps a ledger of all the blockchain transactions it transmits and interacts on the network to keep the blockchain eco system running

2 . A transaction is broadcast means that the blockchain network receives a request from a node or miner that a transaction has been requested, these can come from a wallet, SPV , node or miner

3 .The miner pick the transaction from the mempool, which has the highest fees

#54

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Full nodes hold the complete blockchain ledger whereas SPVs only hold a local version comprising there own transactions and must query a full node for data on UTXOs they don’t know about.

  2. What does it mean when a transaction is broadcasted?
    The transaction is added to the mempool and propagated across the network to await inclusion into the next block.

  3. How does a miner pick which transactions that gets added to the next block?
    Being financially incentivised, the miner will tend to include those transactions with the highest fees.

#55

  1. An SPV is not a Node but communicates with Nodes to verify a transaction.

  2. It means the transaction has 6 or more confirmations on Nodes.

  3. It will choose the transactions with the highest transactions fee.

#56

  1. SPV is a node with part of the blockchain on it

  2. It basically means shouting to everyone on the network that can hear that something is happening and the miners and nodes will validate it.

  3. the miners pick the transactions with the highest sat/B ratio first

#57

1. What is the difference between a SPV (simplified payment verification) and a full node?
An SPV doesn’t contain all the transactions on the blockchain as a node does, it simply communicates with nodes to get information about the transactions.

2. What does it mean when a transaction is broadcasted?
The transaction is communicated to nodes who further propagate it to other nodes.

3. How does a miner pick which transactions that gets added to the next block?
The miner choses transactions with the highest transaction fees to maximize its profit.

#58
  1. SPVs do not have a local copy of the blockchain. Full nodes do. If an SPV needs data from the blockchain, it will query a node.
  2. It is transmitted to the other nodes on the blockchain.
  3. The miner will pick the transactions with the highest transaction fees.
#59

  1. SPV doesnt have a copy of the blockchain but can verify that transactions are in a block. spv requires much less data to operate (mobile)

  2. a transaction has been sent to the network for inclusion to the mempool and ultimately into the blockchain.

  3. miners will likely include the transaction with the highest fees.

#60

  1. The SPVs are light weight nodes that does not have the full database. Normally they are simple wallets that query the full nodes on their behalf.

  2. All wallets when sending bitcoin first sign the transaction and subsequently broadcast the transaction to be picked up by the network nodes and placed temporary in the mempool. Broadcasting here means that copy of transaction is propagated into the whole network for miners to be picked up for mining.

  3. Miners because of being rewarded always pick the transaction that pays the highest fee.