Homework on Bitcoin Ecosystem - Questions

[Kerusha.123]

1. SPV is the private key and verify with nodes. It queries several different nodes first through the intranet.
   A full node is a network in the blockchain that can verify transactions.

2. It means that the transactions have reached all the nodes in the network.

3. The miner selects a trasaction from the mempol and chooses the one with the highest transaction fees.

[lordkalvin]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   • an SPV is a smaller node that only stores a small portion of the blockchain, as opposed to full nodes which contain the entire blockchain
   • SPV’s rely on nearby full nodes to verify the truth of the blockchain
2. What does it mean when a transaction is broadcasted?
   • Wallets send TRX to the mempool where they await gettin added to the blockchain
3. How does a miner pick which transactions that gets added to the next block?
   • Miners generally pick trx w/the highest amout of fees

[Ishoboy]

1. SPV doesn’t have the copy of the whole blockchain it only store transactions pertaining to its address, that’s why an SPV needs to query to a full node in order to get updated with the latest information which is needed specially when having a transaction. While a full node has the complete copy of the whole bitcoin blockchain.

2. It means the transaction is now being propagated into every nodes in the network.

3. A miner prefer to pick first the transactions that do have high fees.

[DJ_Wilhelm]

1. An SPV is a partial copy of the blockchain used typically on a phone or other small computing device that cannot store the entire blockchain on it. It completes the blockchain by referring to other computers with data that completes it.

2. Transactions get broadcasted when the UTXO is picked by a miner, added to the network, and then propagated to the entire blockchain.

3. A miner picks transactions with a higher fee reward from the mempool to add to the block, typically.

[JeremyH]

Homework on Bitcoin Ecosystem - Questions

1. What is the difference between a SPV (simplified payment verification) and a full node?
   – A SPV a node that does not have a full copy of the blockchain but can query other nodes to verify transactions

2. What does it mean when a transaction is broadcasted?
   – A transaction is added to the node’s mempool. Each node relays its transaction to all nodes so that each node has the opportunity to mine the transaction

3. How does a miner pick which transactions that gets added to the next block?
   – Each miner seeks the largest transaction in terms of space because such transactions pay higher fees.

[Rafael_Albuquerque]

1. A SPV doesn’t holds the full version of the blockchain but queries a full node instead

2. A wallet signs a transaction and sends, then the node validates and sends it to other nodes until it propagates to all the nodes.

3. It checks the mempool to form a block with best satochi/byte fees

[guillepc2015]

1. A full node has a copy of the blockchain, SPVs need to conect to the nodes to get this information. The full nodes can also verify transactions.

2. It means the transaction is valid and it’s being shared with others.

3. Miners pick the transactions from the mempool with higher fees.

[mesoto]

• What is the difference between a SPV (simplified payment verification) and a full node?
  SPV carries only a portion of the blockchain and fully nodes have the complete chain.

• What does it mean when a transaction is broadcasted?
  when a tx is broadcasted it is in the blockchain

• How does a miner pick which transactions that gets added to the next block?
  miners pick the transactions with the highest fee per kb.

[Tiffany]

1. SPV resides on a mobile phone for instance and stores all UTXOs. A full node is an actual computer w/hard drive.
2. node adds transaction to the mempool
3. From the Mempool w. highest fees.

[jimmy_humania]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   Full node is suitable to run on PC whereas SPV on a mobile device. UTXO are on node, SPV is just for quick verifications.

2. What does it mean when a transaction is broadcasted?
   It means the transaction is shared with the network nodes.

3. How does a miner pick which transactions that gets added to the next block?
   transactions with higher fees are prioritized by the miners.

[Gevan.G2]

1 - spv does not have full access to blockchain

• full node has full access to blockchain

2- when transactions are in network and propergated

3- By the highest transaction fees, when target is low difficult is high

[JamesA]

@ivan

• What is the difference between a SPV (simplified payment verification) and a full node?
• What does it mean when a transaction is broadcasted?
• How does a miner pick which transactions that gets added to the next block?

1. An SPV can query a full node for the blockchain information
2. A tx broadcasted to the network into the mempool is unconfirmed.
3. $$$/b

[Wade]

1. SPVs do not have a full copy of the blockchain, they use a query mechanism to validate Txs.
2. Being broadcasted means the Tx is being propagated to it’s immediate network, it is not yet part of a confirmed block.
3. Generally they choose Txs with the largest fees involved.

[Alko89]

@DJ_Wilhelm

the UTXO is picked by a miner

@Tiffany

stores all UTXOs

@jimmy_humania

UTXO are on node

UTXO is not a transaction it is an output of a transaction that has not been spent yet and full nodes store all tx data, not just UTXOs

[horhinjo]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   SPV does not store all the data unlike full node.
2. What does it mean when a transaction is broadcasted?
   It means that is propagated on the network.
3. How does a miner pick which transactions that gets added to the next block?
   Based on the transaction fees and hash rate.

[Alko89]

@horhinjo

hash rate.

Hash rate doesn’t really effect the fees. Fees mostly correlate to congestion in the network i.e. number of txs in the mempool

[blockchainuser]

1. An SPV (Simple Payment Verification) is a small node. They are generally wallets or apps. They query full nodes, as they are too small to carry the whole blockchain and may be on a device such as a smart phone. A full node holds a full copy of the blockchain and is able to add transaction to the blockchain.

2. When a transaction is propogated to all the nodes on the network.

3. They generally select transactions with the highest fees from a mempool.

[horhinjo]

Thank you for clarifying that.

[Monsur]

@ivan

• What is the difference between a SPV (simplified payment verification) and a full node?
• What does it mean when a transaction is broadcasted?
• How does a miner pick which transactions that gets added to the next block?

1. SPV do not have the full block chain stored, and a full node does have the full blockchain.
2. Transaction is propagated throughout the network.
3. Miners pick transaction from the mempool, and they normally pick the transactions with the highest transaction fees.

[Markshire_Crypto]

1. An SPV is a wallet that does not have a full copy of the blockchain, so it must query “nearby” nodes to ensure that its UTXO is valid/up to date. Where as a node is also a wallet but it stores a full copy of the blockchain locally, and uses its own data to verify UTXOs. Nodes also verify that all transactions in a proposed block are valid. If the block is not valid it does not propagate the block.

2. When a transaction is broadcasted, a wallet sends out the transaction details (UTXOs) to local node mempools. The transaction(s) are propagated throughout the bitcoin network to all the different node mempools until it is picked up by a miner and mined into a block.

3. Miner: a miner picks which transactions are added to the next block in 2 ways: ensuring that they are valid transactions, and then selects valid transactions based off of transaction fees.