Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1627

1- An SPV contains a shortened version of the blockchain, whereas a Node contains the full blockchain. TheSPV trusts the full node to provide the full blockchain
2 - Broadcasting is sending the transaction out to a node, which passes it to other nodes.
3 - A miner picks transactions from the mempool typically based on the fees it pays. Higher fees are prioritized.

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#1628
  1. SPV does not hold the full data of blockchain, but full node record records all.
  2. The transaction is in the mempool and waits for the minor to pick.
  3. A minor choose the transaction with highest fee inside the mempool.
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#1629

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPV saves a modified version of the Blockchain, then the SPV sends its transaction log to a full node to be uploaded to the blockchain and then downloads the new version of the Blockchain.

  2. What does it mean when a transaction is broadcasted?
    A transaction is broadcast when: a block is mined containing the transaction, and that Block is propagated to the rest of the Blockchain.

  3. How does a miner pick which transactions that gets added to the next block?
    It is a miner choice. However, miners are in it for the profit, so most often, the transactions with the highest satoshis per bite are picked.

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#1630

  1. A SPV (wallet) holds some block data and communicates with the nodes about transactions only related to itself, whereas the full node has access and a copy of the entire blockchain and all transactions and is needed by the spv to verify transactions.

  2. A wallet combines the input utxos to to output transactions to the nodes, the nodes then adds the transactions to the mempool where the miners then start to attempt completion.

  3. Miners find the txs in the mempool and will pick up the largest blocks of txs with the highest fees, this is their incentive, block reward (inflation) and tx fees.

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#1631

1.)SPV do NOT have a full copy of the blockchain like nodes. An SPV relies on trusting a full node in the network in order to read the full blockchain.
2.) When a transaction is broadcasted it is sent via public key cryptography to all nodes in the network and remains in the mempool of those nodes until is confirmed by the miner.
3.) Miners pick which transactions to add to their next block typically based on the higher transaction fees.

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#1632

1)A full node has the complet blockchain with a high level to store data, give more security due the capacity of verify transaction without external resources with a Independence of a centralizaed system , while SPV has a part of a blockchain, low levels to store data and needs external resources for transactions and make weaker the security and privacy.

  1. That means that transaction is valid for a node and then is propagated by other nodes across the network.

  2. Due the incentive to earn more, miners pick transactions with highest fees.

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#1633

1 SPV just lookup for some nodes and after verifying their data decide trust on them.
2 broadcast a transaction means that it is propagated throughout the network.
3 miners chose the transaction with the higher fees.

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#1634

spv has a copy of the blockchain that is impartial and needs to be confirmed with a full node in order to push transactions, a full node itself has a complete up to date record of the blockchain

transaction being broadcasted means it was put on a block that was successfully propagated across the network.

the miner chooses from the mempool and usually picks the transaction with the highest fees

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#1635

  1. An SPV does not have a copy of the blockchain ledger and must query a node to receive data from it.

  2. When a transaction is broadcast, it propagates from itā€™s source (a node) outward towards surrounding nodes, which then receive the broadcast and add the transaction to their mempool ( validating it in the process), and onwards as the surrounding nodes continue to propagate the source broadcast across the entire network.

  3. While a miner, through the mempool, has access to all valid transactions sent over the network, he incentively picks transactions with the biggest fees as they are the source of payment for the miner. Also each block has a fixed size limit, so miners aim to maximize Satoshiā€™s per Byte, and this influences their selections.

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#1636

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPVs stores transactions relevant to its addresses and requires a full node to send transactions and a full node stores the whole blockchain.

  2. What does it mean when a transaction is broadcasted?
    It means a transaction has been sent to the network and into the mempool.

  3. How does a miner pick which transactions that gets added to the next block?
    A miner looks for transactions with the highest fees.

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#1637

1. What is the difference between a SPV (simplified payment verification) and a full node?
a node has a full copy of the blockchain in it where a SPV is a different devise such as a phone which attaches itself to a node so it can send and receive transactions
2. What does it mean when a transaction is broadcasted?
it means its been added to the mempool so now a mine can pick it to put in there block
3. How does a miner pick which transactions that gets added to the next block?
by whichever has the highest transaction as the mine is rewarded with that transaction fee

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#1638

SPV does not have a complete copy of the blockchain it has to be connected to a node to have all the information

transaction braodcasted means it gotĀ“s send to all nodes

miner always pick the transactions from the mem pool and prefer the one with the higher fee

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#1639
  1. a spv relies on a full node, basically it querries a full node to check the blockchain for it. a spv has not a full copy uf the blockchain locally stored.
  2. you have enough utxos to spend and therefore you propagate your transaction through the networ until a miner pick it up and puts it into a blockchain.
  3. He can choose which tx is added to tthe next block. Usually he chooses the ones with the highest fees, which he will earn if he is the fastest to solve the cryptographic puzzle (nonce guessing)
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#1640

The difference between an SPV and a full node is, SPVs tend to download the blockchain data from a node. They both can acquire blockchain data, but the node holds the data whereas the SPV can access the data from a node.

When a transaction is broadcasted, it means that the transaction has reached a node and is being shared with all the other nodes on the network. It hasnā€™t been verified yet, but it is in the mempool to be acquired by a miner and added to a block.

A miner picks the transactions to add to a block by usually choosing the ones with the highest fees.

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#1641

Transactions are broadcasted first, so the miners can see it and put it in a block. The block itself then also propagates through the network with the transaction included :slight_smile:

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#1642

  1. SPV only possesses part of the blockchain as opposed to a node who possesses the full blockchain. A node also performs some additional duties like validate blocks and has a mempool of pending transactions.

  2. A wallet creates a transaction and then broadcasts in the network. All nodes will receive the transaction and add it to their mempool. Miners will eventually pick up that transaction and mine it inside a block.

  3. A miner always picks the transactions (from the mempool) with the highest fees to mine them into a block.

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#1643
  1. A full node has the whole blockchain while a SPV does not. The SPV needs to trust a node to verify its transactions
  2. It is broadcasted to the network, to the mempool for miners to pickup.
  3. Most miners pick the transactions with the highest fees to make the most money in case they solve the block and get the block reward + transaction fees
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#1644
  1. What is the difference between a SPV (simplified payment verification) and a full node?

A SPV does not have a full copy of the Blockchain as a Full Node do.

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

It means that the transaction will be awaiting in the Mempool to be added into a block.

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

The miners always take the transactions with higher fees so that they can monetize even more money at the end if they get to add the block in the entire network.

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#1645
  1. SPV holds block data and does not Hold the full copy of the blockchain. It generates transactions

A full node contains all a complete copy of the blockchain. It does not generate transaction.

  1. when a transaction is broadcasted, the transaction is sent to the mem pool waiting to be picked up by a node for mining.

  2. the miner will pick the transactions that offer the highest transaction fee.

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#1646

  1. A full node has a copy or part of the blockchain while a SPV does not have a copy of the complete blockchain.

  2. It is broadcasted to other nodes and the nodes send them to the mempool to be mined by the miners within the network.

  3. Miners look for transaction with the highest fees.

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