Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1727

  1. A SPV does not have the entire copy of the blockchain (it has to get the missing information from the network - from full nodes), a full node has the entire blockchain stored locally.

  2. It means that a node receives a net tx and sends it to every node in the network.

  3. The miner picks the valid (but unconfirmed txs) from the mempool. The txs with the higher tx fee usually get added first.

1 Like
#1728

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    SPv’s are “small nodes” in terms of having not the entire blockchain compared to a full node. It has to “trust” a full node

  2. What does it mean when a transaction is broadcasted?
    A transaction is broadcasted when sent to all nodes of the network

  3. How does a miner pick which transactions that gets added to the next block?
    Usually selects the transactions with the highest fees because of economical reasons to be incentified the most besides the block reward. The transactions are being “picked up” from the mempool

1 Like
#1729
  1. A SPV confirms the transaction without having the entire blockchain (just the block headers) while a full node contains the entire blockchain.
  2. When a transaction is broadcasted it means it’s propagating throughout the network nodes.
  3. A minor prioritizes the transactions they pick by the amount of potential fees they will earn.
1 Like
#1730
  1. an SPV doesn’t have a copy of the blockchain, rather it communicates with a full node.
  2. Your transaction is spread throughout the system to all the different nodes and they verify your transaction and add it to the mempool if it is valid.
  3. Miners pick transactions with the highest fees.
1 Like
#1731

What is the difference between a SPV (simplified payment verification) and a full node?
A full node holds a complete copy of the blockchain, an SPV doesn’t. An SPV instead queries/reads data on the blockchain held on full nodes
What does it mean when a transaction is broadcasted?
The transaction is added to the mempool and distributed to the nodes in the network
How does a miner pick which transactions that gets added to the next block?
Miners decide which transactions are added based on the financial incentive provided in the txn fee. Higher txn fees increrase miners incentive to add txns to block.

1 Like
#1732

  1. a simplified verification is one that does not contain a complete/full copy of the block chain in order to verify the utxo is accurate. This type of verification needs to query a full node for transaction verification.

  2. Transaction broadcasting means the transaction has been verified and sent to the blockchain so all records can be updated keeping the blockchain consistant between nodes/miners.

  3. They choose this based on the rewards that they will receive for including this in the block they are trying to create.

1 Like
#1733

  1. a SPV does not have a full version of the blockchain stored on the device (smartphone /tablet). It just has data about some transactions

  2. It is sent through the network of nodes and miners

  3. It picks the transactions from the mempool. Miners choose transactions with the highest mining fees to maximize their profits.

1 Like
#1734

  1. SPV is a ‘‘node light’’, it means that the SPV doesn’t have the entire copy of the blockchain stored locally which a node does. So the SPV relies on getting info/approval from a node or several nodes to be able to confirm/verify a transaction in the network.

  2. It means that the node approves the transaction as valid and send it to the mempool and thereafter is distributed across the network waiting for a miner to put it in its block.

  3. A miner choose the transactions that’s most profitable(highest fees) can be called satoshi/bytes, which makes it possible to maximize the amount of satoshi because a block have a maximum size where it can pick/store a certain quantity of transactions per block.

1 Like
#1735

An SPV node, unlike a full node, does not contain a full copy of the blockchain. It is able to validate transactions by querying full nodes in the nework.

When a transaction is broadcast it is sent to the other nodes in the network.

Miners choose to process those transactions from the pool available that will pay them the highest fee for the amount of space the transaction uses.

1 Like
#1736
  1. What is the difference between a SPV (simplified payment verification) and a full node? SPV does not have the full history of the blockchain.
  2. What does it mean when a transaction is broadcasted? When a transaction is added to the mempool for miners to add it to the blockchain.
  3. How does a miner pick which transactions that gets added to the next block? Miners will typically chose transactions with the highest fees.
1 Like
#1737
  1. A SPV only has a part of the ledger not the entire ledger which is running on a full node.
  2. UTXOs are being sent to the network, mempool, for a miner to accept and then confirmed on the blockchain across the network.
  3. The miners are looking for fees associated with UTXOs in the mempool and the inverse correlation of the difficulty of mining. Sometimes it is not profitable to mine. Other times, the target it is high enough that the difficulty is low and they can run their miners to make a profit on the fees associated with adding transactions on the block and linking the block onto the blockchain.
1 Like
#1738

#1.- SPV mostly store transactions relative to addresses while nodes deal with
transactions to fill their nodes in order to add to blockchain.
#2.- Nodes propagated or distributed to all other nodes within his or her sphere.
#3.- Miner tries to pick transactions with the highest fees .

1 Like
#1739

A full node downloads the entire block chain and can verify the transaction. A SPV only has transactions that apply to the wallts address.

The wallet sends out a transaction to the nodes, the nodes check that everything is ok and keep propagating to other nodes, then it’s placed in the mempool and waits for confirmation

The ones with the higher fees

1 Like
#1740

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A SPV does not have a full copy of all blockchain, while a full node does.

  2. What does it mean when a transaction is broadcasted?
    The transaction is propagated to the peer nodes connected to it.

  3. How does a miner pick which transactions that gets added to the next block?
    A miner picks the transactions from mempool, with priority on those with the higher mining fees.

1 Like
#1741
  1. A SPV don’t run a full version of the blockchain but the node does. A SPV has to contact a node in order to verfify transactions.
  2. When a transaction is broadcasted, it gets communicated to other nodes in the blockchain and gets included into the mempool.
  3. A picks the transaction with the highest fees generally
1 Like
#1742

  1. SPV is a light weight “node” that does not store the full block chain. It must query a full node to retrieve the block chain database.

  2. for a wallet, transaction is bradcasted to the network to be verified by nodes, and included in block chain by miners.

  3. miner pick the transaction with the highest fees

1 Like
#1743

  1. An spv can’t store the blockchain locally so it must query a full node to read the blockchain.

  2. It means that a transaction is making its way across the network.

  3. The miner looks inside the mempool for transactions, often picking the ones with a higher fee first.

1 Like
#1744

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A: A SPV is a means to access the network that does not contain all the information the network has, for example a cellphone with an app, but it can access the information. A node always has access to the full blockchain and its information.

  2. What does it mean when a transaction is broadcasted?
    A: When a transaction is broadcasted means that a miner has solved the cryptographic puzzle and has sent, or propagated its answer/block to the nodes/miners of the network for consensus.

  3. How does a miner pick which transactions that gets added to the next block?
    A: A miner picks the transactions for the next block by going through the mempool and choosing the transactions with the highest fees.

1 Like
#1745
  1. A full node fully validates transactions and blocks. a SPV is not a full node and is used on mobile devices to validate and verify a transaction which it does by connecting to a full node to interact with the chain.
  2. A new transaction that is accepted is broadcasted to all nodes.
  3. To make more money, the miner picks the transaction with higher fees.
1 Like
#1746

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV is when you proxy from a full node to send and verify transactions for you. A full node requires you to have a full accounting of the network’s current public ledger, which requires a lot of hard drive space.

  2. What does it mean when a transaction is broadcasted?
    It is being sent to all active nodes, telling them to include it in their mempool. That mempool is then rebroadcasted to all active nodes, continuing to propagate until all the nodes have the same list of transactions that they could include in the next block.

  3. How does a miner pick which transactions that gets added to the next block?
    Miners pick from the Mempool the ones that has the best paying transaction fees (per byte).

1 Like