Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1527

thanks I think I’ll need to watch again.

#1528

Any computing device with a wallet such as a smart phone, tablet or even a computer is considered SPV. Its imported for such device for not to have a complete copy of blockchain instead only transaction related details which that wallet has handled. If however if a complete copy of blockchain is download onto a device and it starts to propagate blockchain then it would be considered a Node.

When a wallet creates a transaction by calculating UTXOs inputs and outputs along with transaction fees and start sending it out to a Node would be considered Broadcasting.

Nodes collects all verified transactions and place them in Mempool from where a miner will pick transactions which are to become part of next block.

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#1529

  1. An SPV does not store the full blockchain and must get information from a node.

  2. Broadcasting means sharing transaction information with all nodes in the network.

  3. A miner generally picks transaction with the highest transaction fee then once completed adds the block to the longest blockchain.

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#1530

  1. An SPV only has a portion of the blockchain and must connect to a network to access the full blockchain. A full node has the entire blockchain.

  2. When a transaction is broadcasted it is sent to all the different nodes in the network.

  3. Miners pick the next transaction by the transaction fee. Transactions with higher fees will get picked first.

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#1531

  1. SPV is the smaller/less version of the network, usually in a smartphone, can not capture the whole netwok. While a full node is the whole version of the blockchain, usually accessible in the computer.

  2. When a transaction is broadcasted, the different nodes that communicate with each other release it out to the network and the miners can then use it.

  3. The miner pick the transaction from the mempool. Once a trasaction is in the mempool, it means the nodes have already agreed to it.

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#1532

  1. SPV only holds part of the blockchain (you usually run this on a phone). They query full nodes for information.
    Full node has the entire blockchain.

  2. It’s propagated to the other nodes so they know of it.

  3. Based on the fees of those TX. The larger the fee that you pay the greater the chances that you TX will get added in the next block.

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#1533

  1. A simplified payment verification does not store all blockchain data like a full node does.

  2. When a transaction is broadcasted it means that it is sent out to the network

  3. Miners preference transactions with the greatest fee reward

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#1534
  1. SPV does not hold the copy of the entire blockchain, and therefore is dependent on fullnodes.
  2. When a wallet wants to make a transaction, it broadcasts it to the network of nodes. The nodes check the blockchain to verify that the transaction makes sense and the wallet has the private keys to spend this amount of bitcoin.
  3. Miner generally want to pick the transactions with the highest TX fees.
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#1535

Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Full node has a full copy of blockchain and can facilitate transactions on its own. SPV can also make transactions, but it does not have a full copy of blockchain so it needs to leverage from other full node.
  2. What does it mean when a transaction is broadcasted?
    Transaction is broadcasted when a full node send it over the network and other nodes copying the transaction.
  3. How does a miner pick which transactions that gets added to the next block?
    Miner pick the ones with higher transaction fees per kb from a mempool.
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#1536

  1. A full node has the entire copy of the blockchain stored on it, however an SPV does not. An SPV queries different nodes repeatedly in order to get information about the blockchain.

  2. When a transaction is broadcasted, it is sent to the nodes across the network. The nodes ensure that the transactions make sense. Transactions that make sense are added to that node’s memepool and passed on to the next node. The transaction remains unconfirmed until it is selected from the memepool by a miner.

  3. The miner picks the transactions with the highest fees first.

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#1537

Homework on Bitcoin Ecosystem - Questions

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

Answer: It does not have a copy of the full BlockChain, it queries an answer from the other nodes.
And a Full node has the entire blockchain history.

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

Answer: Sent to the mempool

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

Answer: The ones with the highest fees per bit/byte/size.

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#1538

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

A Full node has the entire copy of the blockchain. It verifies transactions by looking into the blockchain making sure that they are valid. When a wallet initiates a transaction all the nodes change the entries in their database.

A SPV (simplified payment verification) is a smaller node that does not have the full blockchain. It requires to trust a full node when it wants to read the blockchain. For example, when you use the mobile to make a transaction, you will be using a SPV which will communicate several times with other full nodes to read the blockchain.

2 What does it mean when a transaction is broadcasted?

When a transaction is broadcasted it simply means that the transaction is being communicated or propagated to all the nodes or network for validation but not confirmed as it has not been put into the blockchain by miners.

3 How does a miner pick which transaction get added to the next block?

The miner picks a transaction from the mempool with the highest fee to append into the next block because of financial reward. The rewards are greater when the bytes or size of transactions are larger rather than the transaction amounts being based per BTC or per satoshi. Miners care about the amount of space in bytes your transaction will require.

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#1539

1.SPV is a wallet without all the blockchain data like a full node where you download the all blockchain (at example you can have a SPV on your mobile phone) basically a SPV need a node to question in order to get all the information about transactions.

  1. When you set up a transaction your wallet propagate the transaction to the blockchain if the transaction have sense based on your UTXOS so get the confirmation and goes to the MEMPOOL where the Miners pick it to add it on a new block.

  2. The logic is that a miner who gets the fees (plus the btc mined) as a reward will pick first the transaction with higher fee. Obviously a block has a limited capacity (should be 1MB?) so they will pick the transaction with the best satoshi/byte.

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#1540

What is the difference between a SPV (simplified payment verification) and a full node?
SPV (Simplified payment verification is using Bitcoin without running a full network node.
A full node is a program that fully validates transactions and blocks.

What does it mean when a transaction is broadcasted?
Means it is propagated to all of the nodes or spread to all of the nodes

How does a miner pick which transactions that gets added to the next block?
The miner picks the transactions which has the highest per Bit ratio

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#1541

  1. The SPV has just a partial portion of the chain and needs to connect to the node in order to verify transaction.

  2. It’s call broadcasted when the transaction is confirmed for a bast number of blocks and sended to the entire world in the chain.

  3. The miners choose the transactions from the mempool and pick the ones whit a higher volume of Kb.

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#1542
  1. Main difference is a SPV does not have access to the full blockchain as is the case with a full node.
  2. When a transaction is broadcasted it means it is propagated to all the nodes in the network.
  3. Miner normally picks transactions with highest fees.
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#1543

  1. a SPV is a light node which dosen’t have the full blockchain compared to a full node.

  2. when a transaction is broadcasted, it’s send to all nodes and put in to the mempool to be mined.

  3. a miner picks the transactions for the next block from the mempool.

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#1544

What is the difference between a SPV (simplified payment verification) and a full node?
A SPV doesn’t have the entire blockchain stored locally, the way that it verifies the payment is instead by querying a full node in the network that has a full copy of the blockchain, I think they also did this on not only one full node but to a couple of different full nodes to be able to say its extremely likely that the result I have gotten from my query is the real truth of the Bitcoin blockchain.

What does it mean when a transaction is broadcasted?
It means that a node in the network (full node or an SPV) is spreading a transaction throughout a network to other nodes until eventually all nodes in the network have that transaction either in a mined block or in the mempool of unconfirmed transactions.

How does a miner pick which transactions that gets added to the next block?
A miner can pick freely which transactions to add in the block that miner is going to try and solve. Oftentimes more or less the same transactions gets picked of all the miners just for the fact that they want to make as much money as possible and choosing the transactions with the highest fee’s per byte that is going to fill the block.

How this choosing is happening in practice is that all possible transactions that the miner can pick is stored in a mempool that every full node store and update when new transactions are happening.

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#1545
  1. Full nodes access the blockchain while SPV does not
  2. Propagated throughout the network
  3. Highest transaction fee
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#1546
  • What is the difference between a SPV (simplified payment verification) and a full node?
  • SPV does not have the whole blockchain “downloaded”, it is connected to a Full node which has it.
  • What does it mean when a transaction is broadcasted?
  • It has been signed by the private key and send it to the mempool to be verified
  • How does a miner pick which transactions that gets added to the next block?
  • It takes it from the mempol which has a higher fee / reward per byte
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