Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#723

  1. SPV wallets do not have access to the blockchain and must receive data from a full node in order to process and verify transactions.

  2. When a transaction has been broadcasted it it then confirmed and can be verified by all nodes in the network

  3. A miner will usually pick the transactions with higher fees to add to the blockchain first

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#724

A mempool is not a predefined destination. When you broadcast a transaction it propagates through the network. This means that every time your transaction gets to a new miner, the miner adds it to their mempool. Each miner has their own mempool.

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#725

I am not fully sure I understand your answer. A miner can prefer a transaction with more input and outputs if the satoshi per byte is high enough.

#726

Full nodes store all the blocks. An UTXO is just a part of a transaction.

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#727

Keep in mind that not only one miner will do that, but all of them eventually. As your transaction propagates through the network each miner should have it in their mempool.

#728

Sending a transaction to the blockchain actually means you need to send it to a full node which will make it propagate throughout the whole network eventually. Peer to peer propagation.

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

I think you misunderstood the question. Try again please. :slight_smile:

#729

They accept you transaction. An UTXO is just a part of a transaction.

Again, transactions.

#730

I would correct the last part to “and sent into nodes mempools”. Each node has its own mempool.

#731

SPV do not store UTXO’s but rather only the block headers.

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#732

Mauro,

for some reason, you chose to provide clarity to the answer I offered. When I read your statement, it actually reads very similar to what I wrote originally. Yes, minors solve nonces randomly; in process (how do they get to the point of “guessing randomly”?). Those nonces include the transactions inside the UTXOs. Your statement…“miner picks transactions that are wiling to pay the most satoshi per byte…” is exactly the same as my statement…“picking transactions that have the highest miner fees within”. so you see, its about transactions from start to finish, and has everything to do with them, and miners DO care about how much value a transaction is transferring as that is a metric that is used to determine how much can be acquired in the fees for the same.

In the future, if someone is accurate then let that stand, don’t challenge their assertions to seem more learned etc. Also, if you view the video regarding this subject matter, you will find that i almost directly quoted the presenter. Couple that with the instruction

:…"Also, keep in mind that it’s not about getting the right answer, it’s about trying to answer as good as you can.

Let’s move on!

Derrick

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#733

You are right! my bad :sweat_smile:

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#734

No problem. Good answers. I like how you used the word gossip as a propagation. :smiley:

#735

Answer 1:
Full nodes store the whole block-chain while a SPV store only transactions relevant to its addresses and are required to talk to a full node to send a transaction.

Answer 2:
That it is spread to other nodes.

Answer 3:
From the mempool the transactions with the highest sat/b ratio.

1 Like
#737

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV does not store the whole blockchain whereas a full node stores the full copy of the blockchain. This could be the case on a mobile application which uses an SPV because it does not have enough storage space to store the whole blockchain, it will then have to query a full node before sending a transaction

  2. What does it mean when a transaction is broadcasted?
    The nodes propagate the transactions throughout the network so that all nodes are up to date

  3. How does a miner pick which transactions that gets added to the next block?
    The miner will choose the transactions which provide the highest fees.

2 Likes
#738

1.Full node have a copy off the blockchain and SPV dont so it has to ask node iff tx is valid.2.then it
is vertified and you can use utxo.3.Miner will take the highest fee tx and put in first.

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#739

  1. Full node has the blockchain stored locally. SPV has to query the blockchain data from the full node.

  2. When a transaction is made, it is propagated through the network, so that all the full nodes have it in their mempools.

  3. Miners usually choose the transactions, that have the highest transaction fees relative to their size.

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#740
  1. the miner chooses the transaction with the largest fee. To be put next into the blockchain.
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#741
  1. an SPV is a wallet that does not have a full copy of the blockchain but can query a node to verify a transaction
  2. it is relayed to other nodes
  3. the ones with highest fees are usually chosen
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#742
  1. A method for verifying if particular transactions are included in a block without downloading the entire block. The method is used by some lightweight Bitcoin clients. full node has entire blockchain.
  2. it means that a transaction is accepted by node and broadcasted to other nodes
  3. a miner has a financial incentive to add transactions with the highest fees into his block to get them confirmed first.
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#743
  1. The difference between a simplified payment verification (SPV) method and a full node is that an SPV verifies selected transactions in a block without downloading the entire block.
  2. When a TX is broadcast it means a miner is trying to add a new block of verified TXs to the Blockchain network by sending it to nodes on the network for acceptance.
  3. A miner typically chooses which TXs to verify based on which TXs will provide the highest potential block rewards and TX fees.