Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#944

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

The SPV only stores transactions relevant to its addresses and The full node stores everything. The SPV needs to connect to the node to send and receive transactions.

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

That is when a node accepts a transaction and propagates it to the network.

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

The miner picks the block which has the highest transaction fees. It does this so it can earn the transaction fees as a reward.

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#945

  1. A full node has a copy of the entire blockchain to verify transactions and blocks. An SPV operates as a smaller node in the network to verify if a transaction has been included in a block without having to download the entire blockchain, and it does this by querying a full node and trusting that node for the information on the blockchain.

  2. When a transaction is made, it is then broadcasted to the network and propagated through the nodes who then verify the transaction and once it is verified, it is added to the mempool.

  3. Miners pick transactions from the mempool that have paid the highest fees.

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#946

What is the difference between a SPV (simplified payment verification) and a full node?
A node has a copy of the blockchain and a SPV needs to connect to a node in order to query the blockchain.

What does it mean when a transaction is broadcasted?
Your transaction is sent to the mempool and wait to be added to the next block.

How does a miner pick which transactions that gets added to the next block?
Preference is made to those transactions with the higher fees.

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#947
  1. SPV: A connection point like an app, that does not have the full blockchain on it but connects to a full node to process the request from a user. (Usually from a mobile device)
    Full Node: A connection to the blockchain that has the full current blockchain on it. These are computers that connect to the blockchain.
  2. The transaction that is now in the mempool ready to be picked by a miner for processing.
  3. A miner always picks the transaction with the highest fee.
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#948

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV acts as a broadcaster (not a full node), a full node can confirm transacted blocks, take information from SPVā€™s and send it on to miners and Visa Versa. A node has a copy of the block chain where as a SPV (Phone/ computer ) has to connect to a node to get full exposure.

  2. What does it mean when a transaction is broadcasted? It is put out to the network for processing from a a device on a exchange. The transaction is sent to the mempool to await transaction completion.

  3. It chooses the highest transaction rate/ fee.

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#949

  1. SPVĀ“s are ā€œsmall nodesā€
    They can only read the blockchain (canĀ“t save it), so they have to trust the full node. The data for the SPVĀ“s is provided by the full nodes.

  2. it means that a transaction is propagated to all other nodes.

3.Miners usually pick those transaction which have the highest fees.

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#950

Bitcoin Ecosystem Homework

  1. The difference between a full node and a SPV is that a full node has an entire copy of the blockchain while SPV does not have entire blockchain database but can query a nearby node to access data.
  2. When a transaction is broadcasted it means it is distributed across the network to other nodes and synced.
  3. A miner picks a transaction to be added to another block by solving a cryptographic puzzle. The hash needs to be below a certain threshold, which is the target with inverse proportion to difficulty.
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#951
  1. SPVā€™s doesnā€™t have the whole blockchain of transactions, like a node, which have it all.
  2. Itā€™s added to the mempool for miners to pick it up.
  3. Usually they get the ones with the higher fees.
#952
  1. A SPV has not the copy of te blockchain, just query a full node if it has enough uxtos to spend.
  2. That is propagated to all nodes, over the world.
  3. They pick transactions from the mempool and choose the ones that have higher fees in order to earn more.
#953
  1. Oh, its that little guy that just sinks up to a full node (like a phone or something).
  2. Itā€™s propagated on the network?
  3. Because itā€™s also a node?
#954
  1. Yeah, higher fees. Thatā€™s it.
#955
  1. What is the difference between a SPV (simplified payment verification) and a full node?

A Simplified Payment Verification (SPV) is a method which a lightweight node uses to verify transactions.

A lightweight node stores a partial copy of the blockchain and uses SPV to connect and transmit the transactions to the network. It acts as a proxy to the full node for its transaction validity and security.

A full node stores the full copy of the blockchain and validates every transaction block on the network.

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

When a transaction is broadcasted, the nodes relay to each other and propagate it across the network.

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

A miner picks the transactions with relatively higher transactional fees for the next block.

#956

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

    The SPV is only a channel to a full node allowing transactions through the node.and does not
    contain a copy of the block chain. A full node contains an entire copy of block chain that needs to be
    broadcast across the network.

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

    This is essentially describes how it is communicated through the block chain.

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

    A miner generally chooses a transactions from the mem pool that pay higher fees as well as the
    rewardsā€¦

#957

  1. SPV doesnt have the complete blockchain just the last block for the node to read.

  2. Nodes broadcast the transaction for the miners to see it from the mempool

  3. transactions fees

#958
  1. SPV donā€™t store all utxo data and gets the data from the full node.
  2. Full node shares transaction with other full nodes
  3. Miner perfers transactions with highest fee
#959

1 SPV only has parts of the transactions, it connect to a trusted node went needed.
2 The transaction goes to the mempool and propagates though all the nodes to get confirmed by the miners.
3 Miners pick transactions from the mempool, that bring the highest fees.

#960
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV does not host a full copy of the blockchain, it can only interrogate a full node to validate a transaction. A node has a full copy of the blockchain and is able to validate transactions
  2. What does it mean when a transaction is broadcasted?
    A transaction has to be broadcast to the entire blockchain so that there is only one version of the truth. All nodes need to agree that a transaction is val, hence the broadcast enters the transaction into the mempool
  3. How does a miner pick which transactions that gets added to the next block?
    Miners select transactions from the mempool that provide the highest fee. The amount of the transaction does not necessarily equate to it having the highest fee, the deciding factor is the size in bits of the transaction
#961

  1. The difference between a SPV and full node is that the SPV donā€™t have all the UTXO data and must send out queries to discover the truth of the correct full data for each UTXO and they will check multiple times to verify.

  2. When a transaction is broadcasted the nodes are looking to agree and share a consensus with all the other nodes.

  3. A miner picks transactions from a mempool preferably one with the highest transaction fees then will add them to the block.

#962

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Spv is conected to a full node and thatā€™s the way provides information about the block chain.

  2. What does it mean when a transaction is broadcasted?
    It means that the Tx is being validated by a node and now waiting in the mempool to be picked up by a miner.

  3. How does a miner pick which transactions that gets added to the next block?
    The transaction with the highest fee wins.

#963
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV does not have the capacity to record all UTXO and need validation from a full node
  2. What does it mean when a transaction is broadcasted?
    It means it is past to all other nodes
  3. How does a miner pick which transactions that gets added to the next block?
    they access the mempool and tend to choose does that have the highest transaction fee.