Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1667

  1. A full node carries the full data/transaction history of the blockchain, whie a SPV will only stores transactions relevant to its local addresses and needs to query/ping a full node to confirm and broadcast transactions. A full node is also a miner.

  2. A broadcasted transaction means a wallet has created an output it wants to be distributed across the network, where it is then stored in the mempool until a node picks it up.

  3. The miner scans the mempool and selects which transactions he wants to include in the next block. Miners generally pick transactions with the highest fees (sats/byte) in order to gain the greatest financial rewards.

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#1668

  1. A full node is a computer on the network and checks if the information is valid, has a copy of the block chain but does not produce blocks. SPV Nodes donā€™t have a copy of the blockchain and is a small node that trusts the full node when it wants to read the transaction and it has your private key.

  2. A transaction that is broadcasted means that it propagated across the network to all the nodes.

  3. The miner picks the transactions that has the best satoshi per bytes from the mempool.

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#1669

Both nodes can contain a wallet that creates transactions :slight_smile:

#1670

Transactions get broadcasted first so miners can pick it up and put it in a block. After that the block gets propagated :slight_smile:

#1671

Not necessarily a node can also just be a passive node in the network that stores the blockchain :slight_smile:

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#1672
  1. An SPV does not have the blockchain stored on it but trusts the full nodes; an SPV is a small node that generates transactions and stores your private key. A node store the entire blockchain but does not generate transactions because it doesnā€™t store any private keys
  2. It is communicated to the network of nodes when a TX is mined and the nodes at the TX to their mempools
  3. Miners are incentivised to make money from transaction fees; the higher fee transactions will be picked from the mempools first
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#1673
  1. The SOV does not hold a copy of the blockchain. It needs to query a node to obtain transaction information.

2.It means the transaction is sent to all the known nodes to be stored in their mempool.

3.The miner will pick transactions from the mempool. As its incentive is to be paid as much as possible it will select the transactions paying highest fees first.

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#1674

.What is the difference between a SPV (simplified payment verification) and a full node?
Difference is that a SVP node does NOT have the full copy of the blockchain which a full will have

2.What does it mean when a transaction is broadcasted?
It means it is included in the mempool of all the nodes in the network

3.How does a miner pick which transactions that gets added to the next block?
Miner will pick the ones with higher fees

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#1675

1-an SPV has not the copy of the entire blockchain just transactions from its addresses ,it therefore needs to connect with a node to get that info.The node has the entire version of the blockchain, it verifies it is correct and verifies transactions
2-a transaction broadcasted means it is propagated through the entire network so that all the nodes have it
3The miner picks transactions from a node s mempool ,it chooses the ones with higher fees first

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#1676
  1. What is the difference between a SPV (simplified payment verification) and a full node?

A full node is often housed in a computer and an SPV is normalled housed on a smaller device like a phone. A full node maintains an updated version of the blockchain but an SPV merely ā€œlistensā€ to the blockchain in order to update a private key so that it can tell the private key how many UTXs it is able to spend.

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

A transaction gets broadcasted when it is signed with a digital signature. When this happens the ā€œbroadcastingā€ tells the nodes that it wants to do a transaction. If the private key is able to make the transaction because it has sufficient UTXOs, then the nodes will add it to the mempool so that miners can add it to a block and officially confirm the transaction on the blockchain.

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

The miner chooses from transactions that are listed in the mempool. Of the transactions in the mempool it will select the transactions that have the highest fee as defined by satoshis per byte.

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#1677

Homework on Bitcoin Ecosystem - Questions

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

Answer: An SPV doesnā€™t run a proper node, but rather checks in with a node to verify the transaction; this is helpful when utilizing a mobile phone for example.

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

Answer: This refers to when a wallet broadcasts this initial transaction to a node which then, if it is a miner, may add it to a blockchain and propagate it further.

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

Answer: A miner chooses the transaction with the highest fee; this incentivizes the miner in addition to the blockchain reward.

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#1678

  1. A SPV does not store the full blockchain and needs to get the information from a full node.

  2. It means the transaction has been accepted and sent to all the other full nodes in the network.

  3. Most miners choose a transaction from the mempool with the highest fees and lowest memory size.

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#1679

  1. The difference between an SPV and full node is that SPVs donā€™t have the full blockchain stored, instead they have to query a full node/several full nodes to retrieve the information on the current state of the network and to be able to act on it.

  2. After you sign a transaction via your wallet using your private key, a transaction is broadcasted to the network of nodes meaning that its integrity and validity is verified by the nodes and, if these conditions are in check, it is propagated by those nodes further and further into the network by getting gradually added the each nodeā€™s mempool.

  3. Miners pick those transactions with the highest fees from mempool.

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#1680

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Answer: The difference between a SPV and a full node is that the SPV does not contain a full copy of the blockchain and therefore needs to connect to a full node in order to read or obtain the information of the blockchain network.

  2. What does it mean when a transaction is broadcasted?
    Answer: When a transaction is broadcasted, it means that the information or data of the transaction is propagated to all nodes in the network created a distributed ledger of transactions.

  3. How does a miner pick which transactions that gets added to the next block?
    Answer: A miner picks the transaction that has the higher transaction fees from the network because miners are incentivized to mine and tell the truth through block rewards and transaction fees.

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#1681 
1. A SPV transaction is made on a wallet not on a full node. The SPV has rto connect to the node to get the info. The node can verify the transaction.

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

3. A miner chooses the highest paying transactions (in terms of fees)  from the mempool.
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#1682

1. What is the difference between a SPV (simplified payment verification) and a full node?
SPV is not connected to the whole network, it lets you validate your transactions without having to worry about anybody elseā€™s transactions.
Full node is part of the blockchain network, it is connected to the network and can verify and confirm transactions.
2. What does it mean when a transaction is broadcasted?
It means the information is propagated and shared to all the nodes in the network.
3. How does a miner pick which transactions that gets added to the next block?
Usually with the highest transaction costs in the mempool to motivate him to solve the cryptographic puzzle so that he can earn the transaction costs.

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#1683

Not sure what are you referring to, but an SPV is basically a light node that requires a full node to communicate with the network since it doesnā€™t store the entire blockchain. :slight_smile:

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#1684

1.- Nodes that do not have the entire copy of the blockchain. Small node that trusts a full running node
2.- It is propagated through the network
3. The ones with higher transactions fees

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#1685

1: A full node contains the whole blockchain, an SPV does not.
2: It is sent to the whole network for confirmation that it is valid.
3: They tend to chose transactions with the highest fees in the mempool.

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#1686

Q). What is the difference between a SPV (simplified payment verification) and a full node?
A). SPV allows a node to verify if a transaction has been included in a block, without having to download the entire blockchain. With SPV, full nodes serve lightweight nodes by allowing them to connect and transmit their transactions to the network, and will notify them when a transaction affects them.

Q). What does it mean when a transaction is broadcasted?
A).The client would send the tx to a full node (let aside the complexities of SPV clients), and this full node would verify the tx by some pre defined rules. If ok, this full node transmits to other full nodes. The transaction only gets valid, if it was mined into a block. So the server you mention can be several blocks behind, but still can transmit the tx to other nodes.
Example:
The transaction is sent from UserA to ServerB only, but ServerB broadcasts it immediately to 2 (or 10 or 100?) other servers.

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

A). Miners typically pick the transactions that pay the most fees and include these in their blocks first. Transactions that include lower fees are ā€œoutbidā€ on the so called ā€œfee market,ā€ and remain in minersā€™ mempools until a new block is found. If the transaction is outbid again, it has to wait until the next block.

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