Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1366

Miners put it in a block, the nodes take care its propagated through the network and stored in the mempool so the miner can pick it up :slight_smile:

1 Like
#1367

thanks @Alko89 ill know next time.

1 Like
#1368
  1. What is the difference between a SPV (simplified payment verification) and a full node?

An SPV doesn’t hold a full copy of the blockchain, it communicates with the node and looks as specific parts of the blockchain like transactions. An SPV could be a mobile phone or a laptop whereas these are unlikely to be nodes because they do not have the computing power.

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

A transaction is broadcasted when your wallet signs the transaction with your private key and sends it. The transaction goes into the mempool awaiting a miner to pick it up and add it to the blockchain.

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

The miner will always pick the transaction with the highest fees because they are incentivised to earn money.

1 Like
#1369

  1. The SPV can query the full node to access the entire blockchain. An SPV can generate transactions wihle a node cannot. An SPV needs to query the blockchain as it often doesn’t have the storage or at least the computing power to maintain a full node. An SPV may for example be a phone.

  2. Each block in a blockchain is a copy of each other. Therefore, when an unconfirmed transaction from the mempool is accepted into the blockchain, this information is broadcasted across the blockchain network so every other node in the blockchain has the same information.

  3. Miners will pick a transaction that has the highest fee is they are incentivised by maximising profit

1 Like
#1370
  1. A full node keeps copy of all blocks, while an SPV only keeps certain blocks an has to reference full nodes for more information than what is stored.
  2. A transaction is broadcast when that transaction is sent and accepted by all nodes in the network
    3)Miners pick transactions with highest fee per byte to add to the next block
1 Like
#1371
  1. An SPV is a smaller version of the full node. It is usually on a smart phone. The SPV reaches out to a trusted full node for block info.
  2. When a transaction is broadcasted the data is sent to nodes and miner nodes for confirmations and addition to the blockchain.
  3. A miner pick the transactions based on the incentives (the larger transaction fees) the block will provide as a reward.
1 Like
#1372

1.- Full node storage all the blocks and verify transactions. SPV does not storage all blocks and needs to communicate with a full node to verify transactions.

2.- Transaction mined is propagated to the nodes in order get confirmed.

3.- By the size of the block, the bigger the block (more inputs) the bigger the transaction will be, since fee is satoshis per bite.

1 Like
#1373

What is the difference between a SPV (simplified payment verification) and a full node?
SPV allows you to confirm a cryptocurrency transaction has been added to the blockchain without having to download the entire blockchain; a full node uses FPV (Full Payment Verification) that downloads the whole blockchain

What does it mean when a transaction is broadcasted?
The UTXO is output by the wallet and sent to the blockchain network.

How does a miner pick which transactions that gets added to the next block?
By picking the closest transactions available in the network, typically, but a miner may also be selective and choose transactions that potentially could be most profitable.

1 Like
#1374

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

Unlike a full node, an SPV does not keep the full blockchain local to itself, but instead
it queries a node for the basic verification. An SPV can also only create, sign & broadcast
transactions to the blockchain network, and does not do any mining etc. (SPV = Wallet)

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

The transaction you created using your wallet is sent to the blockchain network, to be added
to the mempool, for miners to include in their next block.

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

The miner will check the mempool for all available transactions, and based on the transaction fee
will use these transactions for its block. Usually higher transaction fees are included first.

1 Like
#1375

Thx.
A transaction is distributed for inclusion in the mempool, and subsequently, into a block.

1 Like
#1376

Why do you think a node can’t create its own transactions? In this sense an SPV also can’t create them, its basically just a “Light node”. The wallet built on top of them is the one that creates transactions :slight_smile:

1 Like
#1377

Transactions must first propagate through the network before they can get mined :slight_smile: and once in a block they are confirmed.

The block size doesn’t directly influence what transactions go in it. Miners try to cram as much txs with higher sat/byte ratio in a block as they can for higher yield. :slight_smile:

2 Likes
#1378

You mean transaction? The UTXOs are part of a transaction :slight_smile:

The miners pick transactions from that they have in the mempool. When miners are constructing a new block they don’t bother with querying the network for them. That would slow them down, making them less effective :slight_smile:

1 Like
#1379

SPV is a light node, not a wallet. But a wallet might be build on top of an SPV node. :slight_smile:

2 Likes
#1380

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    While a node has a full copy of the whole blockchain, the SPV does not, he relies on a node that confirms.

  2. What does it mean when a transaction is broadcasted?
    A transaction is broadcasted when it is confirmed by a node and sent to a mempool for a miner to accept it and insert it in a block in the blockchain network.

  3. How does a miner pick which transactions that gets added to the next block?
    A miner picks the transactions from a mempool that have the highest number of transaction fees.

1 Like
#1381

  1. A full node stores utxo a SPV does not

  2. It wants the miners to add it to a block that’ll be apart of the chain

  3. Miners pick transactions with the highest fee by subtracting the output from the input

1 Like
#1382

  1. SPV doesn’t have the copy of blockchain. It only asks a node to verify information. Full nody has a copy of blockchain and therefore doesn’t have to trust.

  2. A transaction is send from a wallet or spv to the node.

  3. Chooses the one with highest fees.

2 Likes
#1383

Not really. One of the things an SPV actually cares about are UTXOs for the accounts he controls :slight_smile:

2 Likes
#1384

[quote=“ivan, post:1, topic:8444, full:true”]
Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    a SPV doesn’t have the full blockchain , the full node has it

  2. What does it mean when a transaction is broadcasted?
    The transaction is validated on the blockchain

  3. How does a miner pick which transactions that gets added to the next block?
    he takes those with higher fees

1 Like
#1385

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

A SPV you can have as an app on your mobile phone, to store ( or sned) a transaction. You can not read the full blockchain on a SPV. You have to connect to a full node to read the blockchain.

What does it mean when a transaction is broadcasted?
the transaction is send to the other nodes for verification.

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

he picks the transactions with the highest fee.

1 Like