Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#924

  1. The SPV download only a simplified version fo the blockchain, the full node has the entire copy of the blockchain

  2. it is propagated to all the node in the network

  3. he choose first the transactions with higher fees

#925
  1. Simplified Payment Verification allows you to validate your transactions on the blockchain without having the entire blockchain stored on the SPV node.
  2. It means that the nodes all communicate with eachother that a new transaction has been selected to be added to the blockchain.
  3. They select the transactions with the highest fees as they are incentivised to earn a return on the capital outlay (cost of electricity) that went into mining the block (solving the cryptographic function and finding the nonce).
#926
  1. FUll node has the complete database/blockchain while SPV can only query the database to nodes.
  2. Transaction is put in the node and mempool, that later will be add in the block by miner.
  3. based on the higher fees.
#927

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A full node has the entire copy of the blockchain, but an SPV does not. The SPV gets the necessary information regarding blokchain from a few full nodes.

  2. What does it mean when a transaction is broadcasted?
    It means that the wallet has signed a transaction and is propagating it to the network (nodes).

  3. How does a miner pick which transactions that gets added to the next block?
    The miner picks up transactions from the mempool starting with transactions with the highest fees, because this way it can make more money. Of course, the transactions have to be valid to begin with.

#928
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV uses bitcoin without running a full node, it only needs a copy of the block headers of the longest chain. A full node is a program that fully validates transactions and blocks.
  2. What does it mean when a transaction is broadcasted?
    A transaction is constructed to the blockchain and propagated across the network.
  3. How does a miner pick which transactions that gets added to the next block?
    A miner prefers to pick up the transaction with highest transaction fee (highest value of sat/b).
#929

  1. SPV does not have the entire copy of blockchain but has a function to enquire the validity of transaction to a full node. It is often for mobile phone because full node requires larger storage and it is at least a desk top. Full node can be a miner.

  2. A transaction is broadcasted means that this transaction is propagated to the network. For my understanding, this could be the when the transactions are at mempool.

3.Miners picks a transaction with higher fees.

#930

1. What is the difference between a SPV (simplified payment verification) and a full node?
A full node contains a copy of the blockchain while a SPV can just query data from the blockchain.

2. What does it mean when a transaction is broadcasted?
It means that it is propagated throught the network and is waiting to be processed.

3. How does a miner pick which transactions that gets added to the next block?
The Tx with the highest fee will be picked

#931

  1. A full node contains a version of the blockchain locally. An SPV does not hold the blockchain locally but it can verify with a node and be given the details about private keys and if they have any UTXOs available.

  2. It means that a node will communicate with other nodes which will relay the message around the world so that all nodes are aware of a transaction. Once it has been broadcasted sufficiently a miner will. pick it up from the mempool and add it to the block it is constructing.

  3. A miner picks transactions with the highest fee. Those will little or no fees will essentially be ignored if there are higher fees competing with it.

#932
  1. An SPV can hold wallets and private keys and can query the network about those keys.
#933

  1. A full node has a full copy of the entire bitcoin blockchain, while an SPV does not.

  2. The transaction gets sent to the entire network of nodes. The nodes verify if the transaction makes sense or not, and then send it to the mempool for miners to add to their next block.

  3. The miner will usually choose transactions with higher fees first.

#934

There is no central mempool, if that is your question. The miners simply try to mine the best transactions they have at the moment to increase their profits. Sry for the late reply, many topics and posts to read. Hard to keep up. You can always send me a private message on the forums, as I will be able to see that much easier. :smiley:

#935

  1. A Full Node keeps a complete copy of the blockchain, the PSV doesn’t - instead it queries a number of Full Nodes when it needs to read the blockchain.

  2. It means this transaction is being sent out throughout the Bitcoin network, to be verified and then added to the mempools and ultimately to the blockchain.

  3. As miners are incentivized by the transactions fees, it is highly likely that they pick the ones that offer the highest fees at that moment.

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#936

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

SPV are typically a phone app that has minimal tasks, address transactions. It solely relies on a local full node to quire/update itself and the blockchain as full nodes have a full copy of the blockchain.

What does it mean when a transaction is broadcasted?

When a new transaction has been signed by a private key, it is then broadcasted via the blockchain network for a node to acquire to its mempool for mining.

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

Miners pick up unconfirmed transactions from a mempool.

Miners are incentivised so they will typically choose a transaction that has selected a higher fee.

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#937
  1. A node has the full blockchain stored locally on his machine while a SPV asks a node for data in the blockchain and does not has it stored on his machine.
  2. That the transaction is being processed by the nodes and miners.
  3. Usually a miner picks transactions with the highest fees first.
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#938

  1. Full node contains the full blockchain and communicates with blockchain when required, whereas Simplified Payment verification (SPV) does not consists of blockchain and only contains information related to Txns of its current addresses and SPV needs to connect with node to get block related information.

  2. It means that Txn is transmitted to all nodes and nodes get updated with latest block additions.

  3. Miner picks transactions that offer higher fees.

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#939

  1. The difference is that a SPV has no own copy of the blockchain. A SPV needs a full node or a miner to send transactions.

  2. It means that the the transaction gets included in the mempool.

  3. Miners usually pick the transactions with the highest fees from the mempool.

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#940
  1. an SPV does not have its own copy of the blockchain and has to rely on another source like a full node for the information.
  2. it has been sent across the network and is now on the blockchain
  3. highest fee wins
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#941

  1. A SOV is a node that doesn’t store the whole chain, but rely on a full node. The SPV quarry a Full node whenever a user asks for data.

  2. It means that it is spread through the network,

  3. A miner picks the transactions with the highest fees in the mempool.

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#942

Thanks for your comment. Really appreciate. If the miners try to mine the transactions with the highest fees, if there is no central mempool, how do they now which were those with highest fee? Some nodes could have one and other nodes others based on location for instance. Is there a chance that one high fee transaction was not included in the next block since was not spread between node?

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#943

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV does not hold the data of the entire blockchain and generates transactions. Full nodes do not create transactions and hold the entire blockchain.

  2. What does it mean when a transaction is broadcasted?
    The transaction is passed to other nodes so that they may verify and have a copy of the updated chain.

  3. How does a miner pick which transactions that gets added to the next block?
    They work on the transaction that is offering the highest bitcoin per bit.

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