Homework on Bitcoin Ecosystem - Questions

[MindFrac]

1. What is the difference between a SPV (simplified payment verification) and a full node?
An SPV is like a node except it does NOT have the entire copy of the blockchain. It has to piggyback off a full node to query its data. Think smartphone vs. desktop computer. A cellphone can’t hold all the data so it taps into a full node. In other words, an SPV is like a leach.

2. What does it mean when a transaction is broadcasted?
A person’s wallet broadcasts transactions to the nodes where it can propagate through the network and if it’s a valid transaction, it will be added to the Mempool, then added to the block, and lastly confirmed by the miners.

3. How does a miner pick which transactions that gets added to the next block?
If he/she is a capitalist then she/he will likely pick the transaction that can earn them the highest block reward and transaction fees. If They/he are a communist/socialist then she/they might pick the transaction with the lowest fees so they can appear more egalitarian. Then again, they might be bottom feeders picking the lowest transaction fees bcuz their computer sucks and they learned long ago not to go up against the big boys/girls bcuz they continuously face the humiliation of getting a beat down not to mention exorbitant electricity costs all wasted. But who knows for sure why a miner would go for transactions with lower fees?

[travis_bazile]

1. the diffenece between SPV & a full node is that. The SPV wallets are not connected to a netowrk that can verify its transactions. The full node is connected to the blockchain and can send transactions.

2. When a transactions is broadcasted. That means a user has activated the powers of a decentralized network (lol). they have used there wallet to send a transaction to the blockchain

3. a miner choses which next block gets added to the blockchain by having more than 6 confirmations on the blockchain network. the blockchain with the longest link always wins to be on the blockchain network

[LXSO]

1. Full node has entire version of the blockchain, SPV does not have a copy of the blockchain needs to connect to the other nodes to verify their copy of the blockchain.

2. Node accepts a new transaction and propagates it through the network.

3. The miner pick a transaction with highest fees for the best possible profit.

[Arthimis_Vergult]

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

• SPV only stores part of the blockchain
• A full node stores the whole blockchain

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

• A transaction is broadcasted when a node accepts your UTXO and spreads it to the other nodes on the network like gossip.

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

• Nodes create a mempool where all the broadcasted UTXO’s are. Miners pick up the transactions with the best satoshi per byte value from this mempool. The miners then compete and try to solve this cryptographic puzzle. The first miner that can solve a block, succesfully mines the block and adds it to the network. When this happens, nodes update their blockchain to the new truth.

[Yaank]

1. SPVs dont have the full Blockchain.

2. The transaction gets send to other nodes and is in the mempool.

3. Normally miners will pick the transactions with the highest fees.

[Sebonacci]

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

A SPV only stores part of the block chain and must contact a full node in order to send or receive transactions

• What does it mean when a transaction is broadcasted?

It has been sent out to the network/nodes for verification before being added to the mempool to be picked up by a miner

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

Whoever has paid the most in fees

[Frederik]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   SPV’s don’t store all UTXO data, but queries information from one or a few full nodes. So SPV’s offer less reliable information because they rely on a few selected “middle men”.

2. What does it mean when a transaction is broadcasted?
   A transaction is broadcasted when a transaction is propagated to the nodes in the network (via a wallet) and sent into the mempool.

3. How does a miner pick which transactions that gets added to the next block?
   The miner can pick whatever transaction they want. However it makes most sense for them to pick the transactions with the highes transaction fees. This makes the miner profit more.

[Dano]

1. A full node has a copy of the entire blockchain, a SPV doesn’t.

2. Usually transactions are broadcasted by a wallet, this is when the transaction is sent to a node and then into the mem pool.

3. Miners are in it for the money so they pick the transactions with the greatest transaction fees.

[pmensonp]

1. An SPV is not capable of storing all the UTXO data, they must ask the closet node for a copy of the blockchain.

2. The broadcasting of a transaction means that the transaction is propagated to all the nodes throughout the network.

3.The minors pick the transaction with the largest sat/B ratio first

[GoBeeGo]

1. SPV has no copy of the blockchain it is dependent to the node to access information,while the node has the entire copy of the blockchain updated every 10 minutes.
   2 the transaction is valid and sent the transaction in the mempool.
2. usually the transaction with the highest fees are the first to get from mempool to be mine hoping they get the reward.

[DigzBlockchain]

@ivan

Homework on Bitcoin Ecosystem - Questions

1. What is the difference between a SPV (simplified payment verification) and a full node?
2. What does it mean when a transaction is broadcasted?
3. How does a miner pick which transactions that gets added to the next block?

1- SPV is the when only UTXO’s are stored and not the entire copy of the blockchain. A transaction is sent to a node (which has a copy of the blockchain) to begin the process of validation through the network of nodes

2- Broadcasting a transaction is the distribution (propagation) of a new transaction to the network of nodes.

3- the transactions with the highest fees will have priority (supply and demand principle). Of course a miner wants to maximize their income as that’s their incentive

[ambous]

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

• SPV is a process that can verify that a transaction is listed in the blockchain without having to download the full node.
• SPV collects info from multiple nodes so it can verify that a transaction is in the blockchain.

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

• a transaction is being propagated in the network through the different nodes.

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

• they give more priority to the transactions with the highest fees first.

[Christian_S]

@ivan

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

The SPV doesn’t have a copy of the blockchain and has to communicate with a node to get all the information.

@ivan

What does it mean when a transaction is broadcasted?

When your node is sharing your transaction with the rest of the nodes on the network.

@ivan

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

He would normally pick the transactions with the largest fee associated with it, so that the miner receives the largest payout.

[Coco]

1. SVPs are nodes that do not have the entire blockchain stored them selves and have to trust a full node (that has the entire blockchain stored) in order to read the blockchain.

2. It means that the transaction gets propagated trough the network. If the transaction is valid it will be accepted, and if not it will be rejected.

3. Miners can pick which ever transaction they want from the mempool, most likely they will pick one with the highest transaction fee and preferebly one that does not take too much space (Sat/B) since each block has a limited size.

[Leanne]

1. A full node has a copy of the entire blockchain where as an SPV uses a full node to verify if particular transactions are included in a block without downloading the entire blockchain.
2. Broadcasting a transaction means it’s being distributed to all the nodes in the network.
3. Miner’s pick transactions from the mempool with the highest transaction fees.

[Mauro]

@Crypto_Tax_Fixer

1. What is the difference between a SPV (simplified payment verification) and a full node?
2. What does it mean when a transaction is broadcasted?

A wallet assembles a transaction based on existing owned UTXOs to convert into nex UXTOs using a private key. The transaction is then broadcast across the newtork.

1. First question?

2. It means that the translation is getting propagate through the network.

[Mauro]

@cincinnato

How does a miner pick which transactions that gets added to the next block?
Collecting from its own and other node mempool.

Correct. But if their mempool is larger than 1mb, they would want to fill the block with the transactions that will give them most satoshi per byte.

[Mauro]

@Nickpuna1

1. SPV doesn’t have full access to the blockchain but a Full node has complete access.

SPV can still access the full blockchain with the help of a full node. An SPV does not need to have full blockchain saved locally, while a full node needs to.

[Mauro]

@MoCrypto

3. The miner solves the nonce by picking transactions that have the highest miner fees within. So the UTXOs that the miner chooses from have a many transaction within as possible in order to captures the fees for those transactions. A small number of transactions that mover a large amount of value across the network are less attractive than a large number of transactions because that large number will produce greater fees overall for the miner.

Miners solve a nonce by randomly guessing. It has nothing to do with transactions. The miner picks transactions that are willing to pay the most satoshi per byte. Miners don’t care about how much value a transaction is transferring.

[Mauro]

@Madsern

2. Node accepts a new transactions and add it through the network.

That happens after a miner has mined a block with your transaction. When you first broadcast your transaction, it propagates through the network in a peer to peer manner. Each miner passes on your transaction until every miner is aware of you transaction.