Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#904
  1. svp is normally held on a cell phone or any device that doesn’t contain the space needed to contain all the information in blockchain, or a full node
  2. it means that the transaction has been sent to the mempool
  3. since they have monetary incentive to complete the next block and have to spend energy to obtain the computing power necessary to mine the next block they will choose the transaction with they highest fee paid
#905

1-What is the difference between a SPV (simplified payment verification) and a full node?
A full node would check the entire blockchain, whilst a SPV is a more simple system (such as a cell phone) that only stores certain data of the blockchain.

2-What does it mean when a transaction is broadcasted?
The wallet stores the private key, which is used to sign the transaction. Once it’s done, it is broadcasted to the network

3-How does a miner pick which transactions that gets added to the next block?
The miner will get the transaction from the mempool. There, the miner will try to get than tx with higher fees in order to make profit of it.

#906
  1. SPV don’t store data from blockchain. Full node is connected to blockchain.
    2 The transaction was valid and it was put in Mempool and ready to be pick by miner.
    3 Miners takes first with highest fees.
#907

  1. It is a application, website or program that does not have the full blockchain stored like a node. A SPV needs to connect to a node to receive actual information about the blockchain. The node itself should always have the latest version of the chain.

  2. The nodes are offering the transactions for the miners to pickup

  3. The miners want the transactions with the highest fees. Eventually all the transactions get mined but the low-fee-transactions have to wait.

#908
  1. SPV is a small node which does not have a copy of blockchain and must ask the information from the node to verify the transactions.
  2. transaction is sent by the wallet through the network to all nodes and nodes put it in the mempool to be mined by miners.
  3. miners choose the most profitable transaction from the mempool, whit highest fee.
#909

SPV doesn’t need to store the entire blockchain and queries a full node when needed

The ones with the highest fees gets prioritized.

#910

1)a spv has only a small peace of information and has to connect with a full node
2)the transaction is now in the mempool, waiting for a miner to be mined (solved)
3)they look at the difficulty of the transaction to chose witch one the will start mining

#911

  1. SPV wallets don’t contain the full UTXO data from the network. It must communicate with a full node and retrieve this data in order to participate in the network.

  2. Nodes share new transaction details with eachother.

  3. Miners choose transactions from the Mempool that are worth the most in fees.

#912

SPV does not have the entire blockchain downloaded. Just a portion–enough to process a transaction.

Transaction has been verified and is shared to the other nodes via mempool. It will sit there and await to be picked up by a miner.

The transaction in the mempool with the highest transaction fees get selected first.

#913

  1. An SPV is kind of like a light node - it doesn’t store the full blockchain, it just gets up to date information and verification from several full nodes (who do store the full blockchain). An SPV is more reliant on trust that the information is accurate and up to date, but it generally is trustworthy because it checks and verifies with multiple nodes to ensure the data is consistent.

  2. What it means for a transaction to be broadcasted is that a transaction has been constructed and signed by a user through their wallet and has been distributed to the network by way of a node or nodes who share that transaction data with other nodes. Once this information is broadcast and verified, it is sent to the mempool to await mining.

  3. A miner will usually pick transactions from the mempool that offer the highest transaction fees. Each block can only be a certain size, so deciding which transactions will fit and offer the most reward for the space they take up is crucial for a miner if they want to make gains.

#914

Homework on Bitcoin Ecosystem - Questions

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

A SPV only stores part of the information of the blockchain while a full node stores all information of the blockchain. An SPV needs to obtain information from other nodes in order to determine of the blockchain information it has is correct, while a full node does not. The full node provides you with full decentralization. A SPV also requires less space in comparison to a full node.

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

That means that a transaction is added to the mempool.

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

It chooses its transactions based on highest fee to be obtained per byte.

#915
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Full node has complete version, SVP’s only have a portion ie cell phone…they are however connected thru the network to full node.
  2. What does it mean when a transaction is broadcasted?
    becomes part of the mempool and spread other nodes.
  3. How does a miner pick which transactions that gets added to the next block?
    Picks Tx with the highest fee.
#916
  1. What is the difference between a SPV (simplified payment verification) and a full node?

Full nodes contain entire blockchain data whereas SPV can only make an enquiry to a full node in order to validate transaction

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

It is signed and sent to the mempool to await validation and adding to new block by a miner

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

The miner will choose the transactions with higher fees/byte

#917

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV does not hold a full copy of the Blockchain.

  2. What does it mean when a transaction is broadcasted?
    The transaction is being communicated to other nodes on the network.

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

#918

  1. What is the difference between a SPV (simplified payment verification) and a full node? The SPV doesn’t have the full version of the blockchain like a node would.

  2. What does it mean when a transaction is broadcasted? It means it is propagated to all nodes and miners.

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

#919

An Svp can be run on your phone and is a smaller version of the ledger while a node has the copy of the full ledger. SVP sync with nodes to get the full ledger.

when a transaction is broadcasted it is passed around by all nodes and placed in the mempool awaiting a miner.

miners usually pick tx’s with higher fees because thats how they can make money.

#920

Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV has the private key but it doesn’t have the full version of the blockchain, so it could query other nodes to get information

  2. What does it mean when a transaction is broadcasted?
    it means that from a wallet it spread to nodes and each node set the transacion in their mempool where the miner can get it and set it in the block that they will mine

  3. How does a miner pick which transactions that gets added to the next block?
    following the monetary incentive they will probably pick the one with higher fees wich are set in satoshi per byte therefore a miner want the highest fees for the lowest size

#921

  1. An SPV is a lightweight client used to verify transactions and is not a full node which contains the entire blockchain.

    • Client creates a new transaction, adds it to its memory pool
  • Client broadcasts an inv frame, which indicates that it has something in its memory pool, by giving the hash of the transaction to one or more connected peers
  • Peer receives inv frame, checks its own memory pool, it’s not in there, so it sends a getdata frame back
  • Client receives a getdata frame for the transaction it just created, so it sends a tx with the entire transaction
  • Peer receives the tx , hashes it and puts it in the memory pool
  • Peer now has something new in the memory pool, and broadcasts an inv to all connected peers
  • Client gets an inv frame, notices that it’s already in the memory pool, and ignores it
  • Another client gets the inv frame as well, getdata 's it, stores the tx , sends inv , and repeat that until the entire network has the transaction.
  1. A miner chooses which TXs to add to a block by the TXs complexity (eg Inputs and Outputs) and the size of the fee. A simple TX with a large fee will be taken first.
#922

  1. Full node has the full copy of blockchain, SPV is connected to a full node(s) but doesn’t have full copy of the blockchain (often because it’s very heavy on data storage). Thus SPV is reliying on a full node to tell blockchain info to a SPV.

  2. Meaning that nodes have verifiyed transaction as valid (enogh UTXOs) and have sent it to mempool for miners.

  3. Miner will pick transactions with higher fees for the block

#923
  1. The difference between SPV and a full node is that an SPV is not running a full node. The node has the entire copy of the blockchain,
  2. A transaction being broadcasted is announced or propagated to all of the nodes.
  3. A miner picks transactions the highest transaction fees.