Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1547
  • A SPV is Simplified Payment Verification. It allows a lightweight node to use less storage. SPV is a method of verifying transactions without downloading the entire blockchain. It notifies the lightweight node only when a transaction affects that node. A full node has a copy of the entire blockchain and updates the blockchain with a miner’s new block. It also puts new transactions into the mempool.
  • A wallet broadcasts a transaction to the network of nodes. The nodes verify it and put it into the mempool.
  • A miner picks tx from the mempool that have the highest fees
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#1548
  1. The difference between an SPV and a full node can be explained like this. An SPV can generate block data when necessary and also is a database the reads and carries the blockchain.
  2. A transaction that has become broadcasted simply means becoming downloaded to the whole entire family of nodes from the SPV.
  3. The strategy a miner develops to pick out the transaction to use on the next block is locating the transactions in the mempool with the highest fee especially when investing electricity. This is similar to fishing for the biggest fish in the lake meaning the biggest fish often is the best reward/ bang for your buck.
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#1549

  1. SPV dont carry a full copy of the blockchain,
    SVP check to a full node if a transaction has been made because a full node has the whole copy of the blockchain.

  2. Means that the transaction is valid, and the node send it to the mempool.

  3. Miner picks the transactions from the mempool with the highest transactions fees.

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#1550

1 What is the difference between a SPV (simplified payment verification) and a full node?
a full node has locally a full copy of the blockchain whereas a SPV contains only a summary and needs to query nodes to get / confirm TX & UTXO details

2 What does it mean when a transaction is broadcasted?
that a wallet has created a TX and distributed it for other nodes to pickup and validate

3 How does a miner pick which transactions that gets added to the next block?
generally they chose the TX which have the highest fees

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#1551
  1. SPV does not have a copy of full blockchain and full node has.
  2. It means that transaction is sent out to all nodes so that they can verify.
  3. A miner pick a transaction with the highest transaction fees.
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#1552

1- A full node has a copy of the blockchain, while a SPV doesn’t.
2- Connect and propagate transactions.
3- Transactions are picked from the mempool and they usually pick the ones with highest fees.

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#1553

  1. SPV only holds part of the blockchain wile a full node has the full blockchain

  2. It means it has been included in a block that has been confirmed onto the blockchain

  3. By the highest fees being paid

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#1554
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV don’t have the a copy of the whole blockchain and it can only store transactions that are relevant to its address. Full Nodes can store the whole blockchain.
  2. What does it mean when a transaction is broadcasted?
    A transaction is broadcast when the transaction is being propagated throughout the network.
  3. How does a miner pick which transactions that gets added to the next block?
    They miner will take a look at its own transaction list and other nodes transactions list that come from a mempool and it will validate transaction based off of there list. They will usually choose the transaction with the highest fee.
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#1555

1.full nodes store the whole blockchain while spvs mostly stores transactions. relevant to its addresses and require a full node to send transactions.

2.it means that transactions has been requested and the transaction is the added to the mempool to await being mined into a block.

3.miners pick the unconfirmed transactions from the mempool based on transactions fees and hash rate

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#1556

  1. SPV has only a part of the blockchain and not the full thing and they can query a full node to get to the parts they need.

  2. Broadcast means it is propagated through the network of nodes and validated that it makes sense before being added to the mempool and eventually picked by the miners.

  3. Miners picks it from the mempool and usually goes for the transactions with highest fees

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#1557

  • What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV (such as a mobile wallet) does not have a full version of the blockchain. It must connect with a full node to approve transactions.

  • What does it mean when a transaction is broadcasted?
    When a transaction is verified by a wallet it is broadcasted or released into the network.

  • How does a miner pick which transactions that gets added to the next block?
    A miner picks up transactions from the mempool. The highest paying are those with high fees and will tend to be prioritised.

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#1558

1)SPV doesn’t have the full blockchain. It only stores the nodes private key.
2)It means that all transaction is propagated to all other nodes.
3)The miner picks transactions that have the highest fee and they hash the block. Because if they successfully hash it, the miner will be rewarded with block rewards(inflation) and transaction fee.

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#1559

  1. A full node is run from an application on your computer. It will store your private keys and it will have an entire copy of the blockchain. Full nodes put new transactions into the mempool for miners to choose when building a new block. When a miner solves the puzzle and builds a new block, the nodes will update the blockchain with that new block and propagate new information throughout the network. An SVP, on the other hand, is a small node, usually used on mobile devices. It will store your private keys, but it will not have a full version of the blockchain. Because you need the entire blockchain to send or receive a transaction, the SPV will trust a full node and read that nodes (or several nodes’) entire blockchain in order to send or receive a transaction.

  2. When you want to send money to someone, you tell your wallet how much money and what address(es) to send to and your wallet will figure out the rest, constructing the transaction from your available UTXOs and the outputs you specified, as well as calculating the transaction fee. Your wallet will then send, or broadcast, this transaction to the network via full nodes. The nodes will then put your transaction in the mempool, ready to be chosen by a miner.

  3. The miners generally choose the transactions which will yield the highest transaction fees when constructing a new block.

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#1560

All nodes must access the blockchain in one way or another. The difference is that full nodes store their own blockchain and can access it locally, while SPV does not store the entire blockchain and must connect to a full node to get the full picture :slight_smile:

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#1561

An SPV is also a so called light node and does not contain the entire blockchain and must query a full node to get the information. I think you mistook SPVs for miners that create blocks. :slight_smile:

A transaction can be sent either from a full node or a SPV to propagate it forward through the network.

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#1562

  1. An SPV does not store a copy of the blockchain. Instead it is in communication with a full node and queries it for information about the blockchain.

  2. That means a transaction was initiated and is being propagated through the network getting confirmations.

  3. The miners select the transactions that will pay the best.

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#1563

  1. A full node can not create a transaction and stores the entire blockchain.
    An SPV (simplified payment verification) creates transactions and only holds necessary blockchain data to complete the transaction.

  2. The transaction data is recorded across all
    Nodes.

  3. Whichever transaction offers the highest fee is first to be processed by a miner.

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#1564
  1. SPV does not have a copy of the entire blockchain and is usually run on a mobile device. SPVs will query many nodes to verify transactions. Full nodes have a copy of the entire blockchain and are run on desktops and laptops.
  2. The transactions have been confirmed.
  3. By which ones have the best impact on the block reward.
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#1565

  • What is the difference between a SPV (simplified payment verification) and a full node?
    the SPV is a small node that is usually used on mobile devices to query a full node.
    a full node has a copy of the entire block chain.
    the difference between SPV and full node is that, the full node is bigger as it has the entire copy of blockchain whereby the SPV is smaller (dont have the entire blockchain)

  • What does it mean when a transaction is broadcasted?
    A transaction is broadcasted when it gots a 6 confirmation

  • How does a miner pick which transactions that gets added to the next block?
    it checks chain of blocks with more POVs

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#1566

Full nodes may also include a wallet to sign transactions or so to say, a wallet can connect to either an SPV or a full node. The only difference is that SPVs don’t contain the entire blockchain but mostly just query for addresses that its interested in :slight_smile:

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