Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1226
  1. SPV only has a part of the blockchain. A full node has the entire blockchain (gb and gb and gb…).
  2. Tx is sent from a wallet to nodes and miners to be included in the following blocks.
  3. Miners chooses tx’s from mempool and prioritize higher tx fees.
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#1227
  1. What is the difference between a SPV (simplified payment verification) and a full node? SPV does not have the full blockchain and will query from a node for the current state of the blockchain.
  2. What does it mean when a transaction is broadcasted? a node will pick up transactions and if they are valid will ‘broadcast’ the transaction by including it in the mempool so that it can be picked up and included in a block.
  3. How does a miner pick which transactions that gets added to the next block? miners will select transactions with high transaction fees to include in the block over transactions with low transaction fees
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#1228

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV queries a full node in order to retrieve information related to transactions

  2. What does it mean when a transaction is broadcasted?
    It is propagated through the network and it reaches the mempool.

  3. How does a miner pick which transactions that gets added to the next block?
    The miner picks transactions with the highest fee/byte until the block is full

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#1229

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

    • SPV is a Lightweight version of a full node but because the blockchain is so large it does not store it and has to query a full node from information on the blockchain.
    • Full node stores a copy of the blockchain locally.

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

    • The transaction get propagated throughout the network to every node, be it from a transaction request that get added into the mempool or a block that get added to the blockchain.

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

    • It will most likely choose the transactions with the highest fees but also taking into consideration the amount of data it has too process.
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#1230

SPVs do contain some parts of the blockchain, mostly the parts related to the keys it stores :slight_smile:

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#1231

  1. SPVs don’t have full version of the blockchain like a full node and they have to query nodes in order to get the latest blockchain data.

  2. It means that a wallet has signed a transaction and sent to a node which will add transaction to its mempool and forward it to other nodes.

  3. Miners will pick transactions with the highest fee per byte (Sats/B).

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#1232

  1. SPV does not maintain a full copy of the entire blockchain. SPV wallet has to query a node with the full blockchain to see all the UTXO’s it can spend.

  2. Broadcasted indicates the transaction is being propagated throughout the complete blockchain network.

3.Miners pick transactions with the highest transaction fees as they receive the fees on adding the block.

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#1233

  1. SPV is not the full node, and needs to connect to the full node to verify, whereby a full node has the entire blockchain to date is able to complete the verification on its own

  2. A transaction being broadcast-ed means that nodes are picking up the transaction being committed by wallets or SPV etc in a gossip like fashion so that it can propagate throughout the network

  3. Miners pick up transaction from the mempool. Usually they contain the one with the highest transaction fee

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#1234

1.) SPV doesnt carry a full copy of the blockchain, it relies on a full node thas has a copy of the entire blockchain…

2.) That it will spread like gossip through all the nodes and become part of a block.

3.) The miner will pick the highest transaction, from his own pool or the mempool on a node.

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#1235

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A SPV doesn’t have a full version of the blockcha.in so its transactions will need to be verified by a full node

  2. What does it mean when a transaction is broadcasted?
    A transaction is broadcasted when it is sent to all the other nodes to be added to their mempool.

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

1 Like
#1236
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    -a full node stores the entire blockchain and can validate, a SPV relies on another full node
  2. What does it mean when a transaction is broadcasted?
    -the transaction becomes public, enters the MemPool, and gets picked by miners to be added to blockchain
  3. How does a miner pick which transactions that gets added to the next block?
    -a miner goes to the mempool and picks any transaction, but the incentive is to pick the transactions with the higher fee first.
1 Like
#1237
  1. What is the difference between a SPV (simplified payment verification) and a full node?

the SPv doesnt have the full ledger because it wouldnt be able to handle it. The full node has the full ledger because it has the hardware that can handle all that data

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

It means that it is being put on the block chain or ledger

  1. How does a miner pick which transactions that gets added to the next block?
    There is a pool call the mempool. miners can pick any transactions they want. However it was stated in the lesson that the miners usually go for the transactions with the higher transaction fees that way they get more
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#1238

  1. The SPV doesn’t contain the full information of the blockchain in the way that a node does. But the SPV can connect to a node and ask for information about the blockchain.

  2. When a transaction is broadcasted, it gets propagated to the surrounding nodes.

  3. A miner picks the transactions to be added to the next block based on financial incentives. Mainly it’s the transactions that have higher fees, and also the ones that fit nicely onto the miner’s existing block.

1 Like
#1239
  1. What is the difference between a SPV (simplified payment verification) and a full node?

An SPV does not have a copy of the entire blockchain like a node. It relies on a trusted node for getting current UTXO information.

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

It means it is sent to other nodes over the network so it can be added to the blockchain.

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

They pick the most profitable transactions for the block space used.

1 Like
#1240

What is the difference between a SPV (simplified payment verification) and a full node?
An SPV does not have the full blochain stored and needs to query other nodes in order to read it.

What does it mean when a transaction is broadcasted?
It is sent on to all the other nodes to make them aware of the transaction

How does a miner pick which transactions that gets added to the next block?
Miners will choose the transaction with the highest fees per size (in bytes) of transaction.

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#1241

  1. A SPV doesn’t run a full node, it can be for example a mobile device that gets it’s data from a full node.

  2. It is sent to the blockchain through nodes and through the network.

  3. They pick transactions from the mempool and often they choose the transactions with the highest fees.

1 Like
#1242

  • What is the difference between a SPV (simplified payment verification) and a full node?
    SPV does contains only some of the relevant information on the blockchain, where as a full node contains all of the blockchain.

  • What does it mean when a transaction is broadcasted?
    When a transaction is broadcast it is distributed by the wallet into the mempool where it can be seen and validated by the nodes.

  • How does a miner pick which transactions that gets added to the next block?
    All miners are incentivized to first choose those transactions with the highest fee to add to the next block.

1 Like
#1243

  1. The difference between a SPV and a full node is the SPV does not carry the full blockchain and checks-in with the near full node for the entire blockchain.

  2. A transaction being broadcasted means it is presented to all the nodes for acceptance.

  3. The miner goes to the mempool of the node to get the transaction based upon difficulty to create the next block.

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#1244
  1. A node has a full copy of the blockchain. SPVs store TXs but need to connect to a full node to send TXs.
  2. When a node accepts a new transaction it the propagates it though the network - aka broadcasts.
  3. They will most likely pick the TX with the highest fees. They are in any case of course incentivised to do so. measured in sat/b.
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#1245

1.Simplified payment verification doesn’t have the full copy of the blockchain so SVP must go to the Node to get information, while FULL NODE has a Full copy of blockchain
2. Broadcasted means that information is spread to all the nodes
3. Miners pick the transactions with higher fees

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