Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#884
  1. An SPV has only the most recent blocks and is dependend on full nodes for complete data.
  2. A wallet will broadcast a transaction. The broadcast will be picked up by a node and put into the mempool, which in turn will be picked up by a miner to be put in a block.
  3. A miner will use the mempool from a node (miners can be nodes themselves, but it can also be queried from an other node). The transactions in the mempool will be prioritized based on transaction fees and will be put in the next block
#885

What is the difference between a SPV (simplified payment verification) and a full node?
SPVs query the nearest node for updated tx data whereas a full node stores the entire blockchain

What does it mean when a transaction is broadcasted?
When you send a tx it is broadcasted which means you are adding your transaction to be processed, validated and sent

How does a miner pick which transactions that gets added to the next block?
Miners will pick TXs with the highest fee

#886

*** What is the difference between a SPV (simplified payment verification) and a full node?**
An SPV (applicable to an app on a smart phone) holds a private key and queries the blockchain from a full node whereas a node (can) holds a private key along with a full copy of the blockchain

*** What does it mean when a transaction is broadcasted?**

A wallet has constructed a tx and has signed it, now the tx is broadcast, spread across the network to the nodes as an irreversible tx to be added to the mempool

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

A miner picks the tx’s with highest fees first, satoshis per byte, tx’s that are larger in size usually have the higher fees

#887
  1. What is the difference between a SPV (simplified payment verification) and a full node?
  • To run a full node means to keep a copy of the blockchain on your computer and keep it in sync with the network.
  • SPV doesn’t keep a copy. Instead, it regularly asks another computer that is running a full node for the latest version, and checks if any of them apply to the keys that the SPV keeps.
  1. What does it mean when a transaction is broadcasted?
  • It is propagated through the network and added to the mempool (a database of unconfirmed transactions).
  1. How does a miner pick which transactions that gets added to the next block?
  • When your wallet constructs a transaction, it specifies the transaction fee based on the current situation on the network and the desired transaction time. A miner first chooses transactions with the best reward to work ratio (sats per byte). The bigger reward your wallet has promised, the faster a miner will pick your transaction.

Clarification needed - where is the mempool stored? Do all full nodes have a version of the mempool?

#888

1 An SPV allows node to verify transaction without having to download the entire blockchain using only the headers of each block.
2. When a transaction of bitcoin value is sent to the network and collected into blocks.
3. The miner picks the transaction with the highest fee and which is physically closest to the miner.

#889

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

An SPV doesn’t hold the entire ledger unlike a full node.

What does it mean when a transaction is broadcasted?

A transaction is created by a wallet and then broadcast to nearby nodes.

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

The minor gets transactions from mempool based on the expected transaction fee.

#890

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    The SPV doesnt have the blockchain due to the BC size, it uses full nodes to request the tx to be added, a full node does have a full BC.

  2. What does it mean when a transaction is broadcasted?
    That the block mined added to the block is propagated to all nodes in the BC NT.

  3. How does a miner pick which transactions that gets added to the next block?
    The miner will pick the tx with the highest fee from the Mempool

#891
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV does not have a full copy of the blockchain. A node has a full copy of the blockchain. SPV inquiry to a node to get information about the blockchain.
  2. What does it mean when a transaction is broadcasted?
    A wallet created a transaction, which is then sent to the network for collection of blocks.
  3. How does a miner pick which transactions that gets added to the next block?
    A miner will pick a TX with the highest fees first. The larger the size per byte will yield greater fees.
#892
  1. SPV doesn’t have full version of blockchain. They requesting blockchain from a full nodes. And full node has full version of blockchain.
  2. Node is accepting tansactions and propagating through the network.
  3. Miner will choose a transactions from mempool with the highest fees, because it will be more profitable for them.
#893

  1. An SPV is an instance that doesn’t store a full copy of the blockchain. It merely “contacts” a node to receive updates on the blockchain and to confirm possible transactions.

  2. A transaction is broadcasted from a wallet to a node or SPV so that it can get confirmed or rejected.

  3. Miners typically pick the transactions from the mempool with the highest fees per KB.

#894

1. What is the difference between a SPV (simplified payment verification) and a full node?
a. The SPV does not have its own copy of the blockchain and relies on another full node on the network to query data from
2. What does it mean when a transaction is broadcasted?
a. The transaction is propagated throughout the network from one node to another. Each node adds the transaction to its mempool
3. How does a miner pick which transactions that gets added to the next block?
a. Usually a miner adds transactions with a good sat/B ratio

#895

  1. SPV is a wallet used on the mobile phone, it doesn’t have the entire blockchain so it will ask for information several other nodes, a full node contains the wallet and the entire blockchain.

  2. A broadcasted transaction is a transaction that was sent to the network.

  3. The miner will pick the transactions with the biggest fees, the value of the fee is calculated in sat-bit so they will chose the tx that occupy more space in the block.

#896
  1. The difference is the SPV does not have a copy (version) of a blockchain and need to communicate to the node to get information. The node has the full version of blockchain.
  2. It means to propagate to other nodes in the network entirely.
  3. A miner picks transactions from the mempool and priority pick the ones which give higher transaction fee.
#897
  1. A SVP contains only a part of the actual blockchain, but ist connected to a full node to verify.
  2. A transaction is broadcasted as UTXO and becomes part of the mempool waiting to be mined and blockconfirmed.
  3. Miners choose transactions with highest fee rewards regarding “satoshi per byte” ratio.
#898

  1. An SPV does not have a record of the whole blockchain, it will query another node and sometimes many nodes to find out whether a transaction is valid and has been confirmed on the blockchain.

  2. A transaction is broadcasted means that a transaction has been constructed from UTXOs, it has inputs and outputs and is signed using your private key. The transaction is then sent to the network and is added to the mempool waiting for a miner to pick it up and add it to a new block.

  3. A miner picks up transactions from the mempool, the mempool is stored on all nodes and nodes will often have different versions of the mempool. Miners tend to pick transactions with the highest transaction fees since this is the way to make the most money.

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#899
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SVP does not have a full overview of the blockchain nodes compared to a full node
  2. What does it mean when a transaction is broadcasted?
    It means that it is taken by the miner from the mempool into the blockchain.
  3. How does a miner pick which transactions that gets added to the next block?
    A miner picks the transactions from the mempool on a Node. He will filter the transaction based on the highest fee (priority)
#900
  1. An SPV is like a node only a node has all the blockchain data, and an SPV holds block data as necessary. The SPV will communicate with a node for any info it doesn’t have. An SPV generates transactions, and a node does not.
  2. Broadcasting means transaction info is “gossiped” or propagated across the network of nodes.
  3. Miners pick transactions with the highest Satoshis per Byte ratio first. Then transactions with the highest fees are next.
#901

An SPV is a version of the blockchain that is not complete, usually ran on a device, such as a phone, that can not store the entire blockchain. The SPV must trust a node.

A transaction is broadcasted when it is sent from a wallet to a node, then the node adds it to the mempool to later be verified by a miner.

Miners pick the transactions with the highest fees, as that is a portion of their reward for solving the cryptographic puzzle.

#902

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A SPV differs from a full node because it lets you validate your transactions without having the data of the entire blockchain like a full node does.

  2. What does it mean when a transaction is broadcasted?
    A function of a wallet, a transaction that’s broadcasted is being propagated throughout the network by node communication.

  3. How does a miner pick which transactions that gets added to the next block?
    A miner picks transaction based on incentives, usually a transaction will the highest tx fee is picked first from the mempool.

#903

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A full node stores the whole blockchain. SPV store transactions relevant to its addresses and needs to connect to the node to send transactions and get the full information.

  2. What does it mean when a transaction is broadcasted?
    The node accepts a new transaction and propagates it to the network. then it goes to the mempool until a miner picks it up.

  3. How does a miner pick which transactions that gets added to the next block?
    The miner picks the transactions with the highest fees (sat/B ratio) first from the mempool.