Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#984

Before it can be the part of the blockchain it first needs to be confirmed after being broadcasted.

#985

Exactly. Miners choose from their point of view. There is a chance that the actual highest fee transaction was not included because of the nodes location and what they had in their mempool at that time. :slight_smile:

#986

A full node (usually a miner) has its own wallet. A full node can do everything (sign transactions, broadcast transactions and even mine them if they are a miner). An SPV node relies on the full node. It needs to be connected to one in order for it to be able to get the latest information and for it to be able to propagate their transaction.

#987

The unit we use is “satoshi per byte”.

#988

You only need to connect to the full node if you want to send transactions. Your SPV can be offline and you could still recieve a transaction. Next time you open your SPV node it will get the latest information from a full node and it will update your bitcoin balance.

#989

Correct. But do all transactions have the same priority? Or does the miner choose between them somehow?

#990
  1. SPV wallet don’t store all UTXO data, gets it from full node
  2. Full nide share tx with other nodes
  3. miners prefer tx’s with highest fee per bit
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#992

  1. An SPV node verifies that transactions are included in the chain. (The ones you are interested in)

  2. When a transaction is broadcasted it basically means the computers talk to each other and tell each other the correct transactions. 10 minutes is sufficient time for the block to propagate through entire chain.

  3. Miner wants most money possible (I’m assuming). Txs with highest fees

#993

Homework on Bitcoin Ecosystem - Questions

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

  1. A Simplified payment verification (SPV) does not have the full ledger of the blockchain. Due to size of the file it would be difficult on low memory devices to be able to store all the data like a smart phone. So a SPV will reach out to the nearst Nodes that have the full ledger/blockchain to verify any UTXO’s.

What does it mean when a transaction is broadcasted?

  1. When a transaction is broadcasted it becomes an unconfirmed transaction. The network talks to each other and checks to see if the data linking the address is correct. The nodes will insure that everything check out before miners adds the UTXO’s into its block. Miners have to solve the puzzle to be able to link there block on to the blockchain. Once it confirmed it broadcasts out to the rest of network with the confirmed blocks and updated across the nodes.

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

  1. Miners have incentives on the bitcoin blockchain. By using Hashing Power to solve the Cryptographic puzzle, they are required to spend a lot of money on electricity. When the go through mempool and gather all the unconfirmed UTXO’s they aim to gather transactions with a higher fee. This is 1 of the incentives for the miners. If there solve the puzzle and there block is added on to the blockchain they get to keep all the transactions fees that’s in the block. Not only do they get the fees they also get the block reward. This is new Bitcoin mind in the POW Eco system.
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#994
  1. A full node stores the whole BC and a SVP just can query the bc from other parties
  2. A transaction is broadcasted to the network when its signed by private Key and is sent to nodes for validation
  3. He picks it from mempool and decides which TXs are the most lucrative ones with the highest TX fees
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#995
  1. SPV wallets don’t store all UTXO data and must get data from full node.
  2. It is sent to other nodes in the network.
  3. They pick the ones with highest fee.
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#996
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Full node contain the whole ledger data while SPV inquire the data from other trusted full node
  2. What does it mean when a transaction is broadcasted?
    When the transaction was constructed it then propagate to other nodes on the network
  3. How does a miner pick which transactions that gets added to the next block?
    The miner usually look for the one with highest transaction fees
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#997
  1. SPV does not have/ stores a blockchain. But it allows and stores transactions. It needs to to be connected to the node. A full node has an entire blockchain stored which verify transactions.
  2. A transaction is being broadcast means its sending information across the network about a transaction is being made.
  3. Usually the miner picks the highest fees in an unconfirmed transaction from the mempool. Then puts it into a block with previous hash and guesses a nonce and hashes it until it hash is being accepted in the Target difficulty.
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#998

  1. The difference between SPV and Full node is that full node is used to store the whole blockchain while SPV does not have full copy of full node and needs to connect to full node to get information and make transaction.

  2. When a transaction is broadcasted it enters the mempool and waits to be picked up by miners.

  3. Transactions are picked up by miners with the highest fees

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#999

1: A SPV does not contain the full blockchain
2:I means the info of tx and data is spread thoughout the network
3:they pick from the mempool the one that has the highest payout

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#1000

SPV is like the one used in mobile which is used to communicate with a full node to retrieve balance send and receive txs without downloading a copy of the blockchain, but full node contains a full copy of the blockchain.

It is added to the mempool so one of the miners will mine it and add it to the blockchain.

The ones with the hifgest fees.

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#1001

What is the difference between an SPV (simplified payment verification) and a full node?
An SPV does not have its own copy of the entire blockchain. SPV is used by wallets for a lean process not requiring large data storage capacity.

What does it mean when a transaction is broadcasted?
A broadcasted transaction is sent to all nodes in the network. All nodes check plausability and then add to own mempool and then further broadcast in the network.
How does a miner pick which transactions gets added to the next block?
Miners take the transactions with highest transactions fees first.

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#1002

Hi there!! What about how miners picks the transactions (#3)?

#1003

and spv wallet does no contain the full blockchain of txn like a node. it queries nodes.

broadcasted utxo are spread after confirmation of the miners to the network and synced to nodes .

txn are added by the miner according to fees, most of the time.

#1004

Think about what information about the blockchain does each node has.

Yep!