Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1607

  1. SPV doesn’t have a copy of the blockchain.

  2. It’s distributed between the nodes.

  3. Different transactions have different fees’s for mining them, miners want the highest fee so those are mined first.

1 Like
#1608
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Full nodes contain all transactions of the blockchain network while a SPV can only verify that the transactions related to the wallet is in the blockchain without having the whole data network.
  2. What does it mean when a transaction is broadcasted?
    The data is added to the block on the blockchain network
  3. How does a miner pick which transactions that gets added to the next block?
    The one that has the highest satoshi/byte ratio.
1 Like
#1609

Transaction must first be propagated through the network so miners can see it and put it in a bock :wink:

2 Likes
#1610

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A full node has a full copy of the blockchain where an SPV does not. It will need to connect to the node to receive more information.

  2. What does it mean when a transaction is broadcasted?
    A transaction broadcast is the TX being blasted to all other nodes so they are all ‘on the same page’ so to say.

  3. How does a miner pick which transactions that gets added to the next block?
    The miner will most likely choose the transaction with the higher fees as this is how they are rewarded.

1 Like
#1611

  1. SPVs are only capable of broadcasting transactions and requesting certain chain data. A Full node can also do that, and in addition can store up-to-date versions of the blockchain and full nodes can also be miners.

  2. Broadcasted means that a transaction is sent to other full nodes so they can verify and broadcast the transaction further until a miner receives, blocks it, and mines it.

  3. A miner is always incentivized to add transactions that pay higher transaction fees first. This is not done manually but is based on preset conditions by the miner.

1 Like
#1612

  1. A full node stores a full copy of the Bitcoin blockchain while an SPV stores a lesser amount but helps broadcast and propagate transactions.

  2. That it is sent to the mempool for a miner to choose it.

  3. A miner typically choose the UTXO’s with the highest transaction fees so they get rewarded the most BTC if their block gets added to the blockchain.

1 Like
#1613
  1. Full nodes store the whole blockchain where SPV communicates with full node to read information it needs.
  2. A transaction is sent to all nodes and added to the mempool for miners to verify.
  3. Miners pick the transactions with the highest fees.
1 Like
#1614

  1. An spv only has a portion of the blockchain verified on it and a full node has the full history from the genesis block, spv’s are usually wallet addresses used by wallet apps and exchanges I believe.

  2. It means it is added to the blockchain and waiting to be verified by miners.

  3. Those that offer the highest fee or mining rewards from the available list of transactions.

1 Like
#1615

Well, they are not really addresses, these are created by the wallet. The simplest term for an SPV is a Light node :slight_smile:

2 Likes
#1616

Don’t full nodes have their own wallet addresses I figured an spv would also have its own wallet adddress?

#1617
  1. A SPV does not have its own copy of the blockchain and instead has to connect to a full node to gain access to the blockchain contents.
  2. When a transaction is broadcasted, it means that every node in a particular blockchain network will be able to see the transaction being broadcasted and each will be able to verify that the transaction is sound.
  3. The miner picks transactions to be added to the block being mined by the difference in fees being paid for each transaction. The higher the fee, the quicker the miner will confirm the transaction.
1 Like
#1618

1.) the difference between an SPV and a full node is that a full node has a full copy of the distributed ledger, whereas an SPV has only a partial version of it and has to work along with a full node to operate.
2.) When a transaction is broadcasted, it is send to all of the nodes in the network for consensus within the database, and then sent to the mempool until added to a block by a miner.
3.) The miners will choose the transactions that offer the most incentive. They’ll pick the transactions that are paying the highest fees.

1 Like
#1619

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A SPV doesn’t have a copy of the blockchain and has to send transactions to node which has a copy of the blockchain.

  2. What does it mean when a transaction is broadcasted?
    is when the UTXO in your wallet sign, construct then Broadcast the transaction to the mempool.

  3. How does a miner pick which transactions that gets added to the next block?
    a Minor will pick up the transaction with the highest fees.

1 Like
#1620

Hi Everyone!

  1. The difference between an SPV (Simplified Payment Verification) and a full node is that an SPV does not have a full copy of the entire blockchain on its device which is usually a phone. A full node has a copy of the entire ledger and is usually on a desktop computer or laptop that is able to store the larger amount of data.

  2. When a transaction is broadcast over the network, the nodes in the network communicate with each other to see if there are enough UTXOs for the sender to spend.

3.A miner will usually choose the transactions that have the highest fees to add to the block because they are incentivized to make money.

Peace,
Minden :green_heart:

1 Like
#1621

An SVP only have partial UTXO data and it trusts a full node for a full copy of the blockchain.

A transaction is broadcasted means is communicated a to the network propagated to the nodes and appended to the mempool.

I miner will select the transactions from a mempool with the highest transaction fee per Byte.

1 Like
#1622

1 - An spv is a node that doesn’t have the full blockchain locally, it has to communicate with full nodes to gather information.

2 - It means that a wallet have sign a transaction using it’s private key and broadcast the transaction on the blockchain for verification and approval.

3 - The miner will contact a node or go through his own mempool to pick a transaction with the highest fees.

1 Like
#1623

  1. SPV do not have an entire copy of the blockchain. A full node hold an entire copy of the blockchain.

  2. Transactions need to get through the system. Nodes broadcast and propagated transactions through the system.

  3. They pick the one with the highest fees and thus paying them the most $$$$.

1 Like
#1624
  1. What is the difference between a SPV (simplified payment verification) and a full node?

SpV is a smaller version of the blockchain vs full node is the full blockchain.

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

Nodes talking to the network to make sure the transaction make sense.

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

Usually the transaction with the highest fees.

1 Like
#1625

Nodes and SPVs are their own things, independent from a wallet. True they usually are the same thing, the node software also contains the wallet part that contains the keys, same for SPVs but might not be the case. You can run a node without a wallet and have an independent piece of software that connects to the node that works as a wallet. :slight_smile:

#1626

  1. An SPV is a portion of the blockchain compared to a full node that has a copy of the entire blockchain.

  2. A transaction is broadcasted when the data is sent to nodes to be verified by miners to be upended to the blockchain.

  3. A miner picks the transactions with the highest fees as this is an incentive earned for mining if their block is upended.

1 Like