Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1286
  1. What is the difference between a SPV (simplified payment verification) and a full node?

An SPV system doesn’t contain a full copy of the blockchain. A full node contains a full copy of the blockchain

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

After a miner appends the blockchain nodes spread the message throughout the system

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

Miners pick transactions with the highest profit margin from the nodes mempool

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#1287

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

DPV only task is to verify transactions in the blockchain using simplified payment verification (SPV). A full node validates transactions and blocks and accepts transactions and blocks from other full nodes to support the Bitcoin network.

What does it mean when a transaction is broadcasted?

Transactions are being send to the network to nodes to be verified

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

Miners pick transactions with highest fees because they want to make money ans miners are incentivize by earning block rewards.

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#1288
  • What is the difference between a SPV (simplified payment verification) and a full node?
    .The difference between a SPV and a full node is that a SPV does not have a full version of the block chain and a third party needs to confirm with a full node.
  • What does it mean when a transaction is broadcasted?
    .A transaction is broadcasted when a node accepts the transaction and adds it to the mempool ready for mining
  • How does a miner pick which transactions that gets added to the next block?
    .The miner will pick the transactions with the highest fee.
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#1289

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

Simplified payment verification (SPV) only have a copy of the blockchain. Normally it is referred to as a small node.It does not have a capacity to create a blockchain. Where a full node is able to solve cryptograqphic puzzle and is able to append transaction into the blockchain.

2 What does it mean when a transaction is broadcasted?

A transaction is broadcasted when it gets added into the mempool.

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

A miner picks up a transaction from the mempool. Usually transactions with the highest fees are a priority.

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#1290

-The difference between a SPV and a full node is that an SPV does not have a full copy of the blockchain and needs to connect to the node to get the information. The node has the full copy of the blockchain in its entirety, verify that it is correct and verify transactions.
-A transaction being broadcasted means it is propagated to all of the nodes or spread to all other nodes on the network.
-A miner picks transactions from a mempool and chooses the ones with the higher transaction fees.

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#1291
  1. an spv does not have a complete copy off the blockchain. But usage the copy from an other source
    2 it means that it is put in the mempool to be selected by the miners
    3 it usually picks the ones that are the most profitable. With the highest satoshi to bit rate.
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#1292

  1. A SPV is a platform where you can communicate with a full node, but is missing the copy of the blockchain. Meanwhile a full node has the full version of it. So, that is how the SPV verifies the transactions.

  2. When a transaction is broadcasted it is viewed by all the nodes present.

  3. They pick the most valuable transactions (with the most fees) from the mempool.

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#1293

Not sure if platform is the right word, this usually reminds me of large multi user services like YouTube but an SPV is just a piece of software that stores the users keys and contains some bits of the blockchain relevant to the keys it stores :slight_smile:

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#1294
  1. SPV wallets does not have the full blockchain. They get data from a full node
  2. Full nodes shares tx to other full nodes
  3. Miners picks tx from a mempool and choose the tx with the higher tx fee
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#1295

1.)
A SPV (simplified payment verification) is used for Mobile Wallets or “light” Wallets like Exodus or Electrum.
You dont use your own full node to validate your Transaktons, instead you use a “strange” node in the Network to validate and to broadcast them to the network.

With a full node wallet (Bitcoin Core Wallet) you download the full blockchaine on your PC to validate and broadcast all transactions to the network by yourself.

2.)
After a transaction has been broadcasted to the network, the other nodes will check if this address (public key) has the specified amount of bitcoin.
Because maybe someone wants to send some fantasy bitcoin that he don’t have.
After this transaction has been validated by the Network, it will be send to the mempool.

3.)
Miner pick the transaction from the mempool and prefer those with the highest fees.

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#1296

I really liked your explanation on what is SPV!

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#1297

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Answer - SPV does not hold a copy of the entire blockchain, therefore it has to query that information from the nearest full node. The full node, on the other hand, maintains a copy of the entire blockchain. SPV usually a phone-based application while the full node can be run on a computer.

  2. What does it mean when a transaction is broadcasted?
    Answer - after confirming that the transaction is valid (e.g. has a correct number of the UTXOs to perform the transaction) the transaction is being propagated to all nodes in the blockchain to be placed in the mempool in order to be picked up by the miners.

  3. How does a miner pick which transactions that gets added to the next block?
    Answer - a miner tends to pick up the transaction that comes with the higher fee-tag (expressed by Sat per byte).

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#1298
  1. A SPV holds select data from the chain and is used to generate transactions and interact with a node in order to access the blockchain.
  2. When a transaction is broadcast it has been placed into a nodes mempool and is waiting for a miner to include in a block.
  3. A miner will pick the most profitable transactions to include in the block until the block is full
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#1299

A full node has the copy of the entire blockchain while SPV doesn’t. SPV has to query the blockchain in order to verify the transaction.

Transaction is broadcast means that it is propagated into the network, put in mempool to be picked up by miners.

The miners pick the transactions according to their fees. They want to make money so they pick transactions with highest fees.

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#1300

  1. the spv dont store the hole blockchain

  2. it gets send to all the nodes

  3. the ones whit the higest transaktion fee

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#1301

Thanks! I didn’t know which word to put into that sentence, so…I came up with platform, since it was what I had in mind.

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#1302
  1. What is the difference between a SPV (simplified payment verification) and a full node?

a full note contain the latest blockchain, creates a mempool of UTXO by listening to the wallets. an SPV like a mobile phone, do not have a copy of the blockchain, therefore needs to query a node to get the latest blockchain information.

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

it is send to the mempool of a node, ready to be picked up by the next miner. a transaction is broadcasted when the wallet verify the UTXO engaged in the said transaction.

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

miner will always get the transaction with the highest fee, so they will get more incentive from mining the next block.

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#1303

Homework on Bitcoin Ecosystem - Questions

1. What is the difference between a SPV (simplified payment verification) and a full node?
A svp communicates with the nodes to read the blockchain. A full node stores the blockchain

2. What does it mean when a transaction is broadcasted?
It will be distributed among other nodes and they will put the transaction in the mempool

3. How does a miner pick which transactions that gets added to the next block?
The transactions with the most fee. These are the transactions who have the most bits.

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#1304

SPV does not store the whole blockchain adn must contact a node to access data.
A broadcast Tx propagates node to node across the network until each node has the information. The miner pick the Tx from the mempool with the highest fees.

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#1305
  1. The difference between SPV and a full node is that full nodes have a full copy of the blockchain but a SPV has to read a full node to trust the blockchain that a TX is valid.
  2. When a transaction is broadcast it means that a wallet has signed and sent a TX to the nodes on the network to be checked it is valid or not.
  3. Miners pick transactions to add to the next block by highest TX fee as it is more valuable to them.
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