Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1747

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

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

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

  4. a full node has the full copy of the blockchain and the spv stores transactions relevand to its adresses but needs to cennect to a fullnode to get informations to send transactions

2.transaction been sent to nodes and mempool

3.the miner want most profits so it chooses the tranactions with highest fees

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#1748
  1. What is the difference between a SPV (simplified payment verification) and a full node?

A SPV does not contain the latest copy of the blockchain, whereas a full node does. Thus, a SPV does not store all the UTXO data and must request it from a full node.

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

A transaction that is being broadcasted is being propagated throughout all the nodes in the network.

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

A miner selects unconfirmed transactions from their own mempool or from the mempool of other nodes in the network. As they are incentivised by monetary gain, it is most likely they will select the transaction with the highest transaction fee’s.

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#1749

A transactions is broadcasted to the nodes before it becomes part of a block so that miners can pick it up from their mempools. :slight_smile:

#1750

  1. A full node has a full copy of the blockchain, the SPV needs to connect to a full node to look for transactions.

  2. After the wallet prepares the transaction it sends to the node and the transaction is propagated to other nodes so the miners can pick it up and parse it into a block.

  3. The miners take transactions from the mempool to put together new blocks. It would make sense to pick transactions that offer the best fees.

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#1751
  1. SPV is designed for end-users and take less space to run. SPV allows users to broadcast their transactions and retrieve, verify transactions by access the entire blockchain through full nodes. It generates transactions but does not share the workload.
    A full node contains an up to date copy of the entire blockchain. It validates transactions, blocks and relays them to other full nodes. Full nodes keep the blockchain network functional and make sure everyone’s following the protocols.

2.A transaction broadcast is to send the transaction across the network for verification starting from nearby nodes. Nodes that picks up the transaction will verify it independently. If this transaction makes sense it gets to another node for verification until it spread to the entire network.

  1. Miners pick transactions that yield the highest satoshi per byte per transaction size to add to the next block.
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#1752

  1. Spv does not have the whole version of the blockchain. Needs to communicate with nodes.

  2. It means it is propagated among the nodes in the network where It goes into the mempool and waits to be picked up by a miner.

  3. The miner picks the transactions that pay the most satoshis per byte.

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#1753
  1. SPV will not keep entire copy of the blockchain making it a thin client. SPV nodes only retain blockchain header information and rely on network peers to verify transactions. An example might be a phone where it would not be feasible to store a full copy of the blockchain. A full node will retain an entire copy of the blockchain and verifies all transactions itself without the need for external sources. New transactions received from the network are also independently verified by the node making it decentralised.
  2. A node will broadcast a transaction, that it deems valid, to the network to be propagated among all network nodes to be finally validated by a miner and appended to the blockchain.
  3. Miners will select up to a maximum of five transactions from the mempool, typically, by selecting the transactions with the highest TX fees.
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#1754

  1. SPV is a copy of blockchain which reads information from someone else’s full Node.

  2. Transaction is broadcasted to the nodes at the beginning and when they approve the Tx, they send it to the mempool where they are waiting for miners to pick them up and put in their blocks.

  3. Miners usually choose the transactions with the highest Tx fees.

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#1755

  1. SPV does not have the full blockchain history and only allows queries to be sent to full nodes. Full nodes have the full blockchain history.

  2. Sent to the rest of the network to check whether it is valid or whether it can be updated to the blockchain.

  3. Transactions with the highest fees are prioritised.

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#1756

  1. SPV contains very limited data and it needs a dull node to carry out the transaction.

  2. Unconfirmed transaction that is placed in the mempool,

  3. Off course higher fee transaction will be picked up first.

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#1757

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Ans: A SPV is not a full node and cannot contain a copy of the blockchcain and it also cannot participate in the process of appending a new block to the blockchain. It is usually run on a mobile device such as a mobile phone. Whereas a full node is just the opposite of everything that is described for a SPV.

  2. What does it mean when a transaction is broadcasted?
    Ans: It means that a transaction is valid and has been added to a block.

  3. How does a miner pick which transactions that gets added to the next block?
    Ans: Usually, a miner picks the set of transactions with the highest transaction fees associated with them.

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#1758

  1. SPV is a communication endpoint which is used by wallets. SPV is a method where users can check if transactions were included or not in a block. SPV relies on information provided by full nodes. SPV makes use of the network, they do not contribute to the network security. They do not keep a copy of the blockchain. They do not participate in the verification and validation of transactions.
    Full nodes insure that the rules are being followed. They support and provide security to Bitcoin, as they protect the blockchain against attacks and frauds. They are connected to the Bitcoin interface wherein they communicate with each other, and validate and verify blocks. They transmit information about transactions and blocks within the network, by using peer-to-peer protocol. They relay new transactions and blocks to the blockchain. They download a copy of the Bitcoin blockchain and use specific software (Bitcoin Core). There are minimum requirements to run a Bitcoin Core, your desk top or laptop must meet the required specifications and have a run time between 6 and 24 hours per day.

  2. Broadcasting a transaction constitutes a number of steps–:
    A user initiates a transaction on the blockchain, thru his or her wallet. It is broadcast in Peer-to-Peer mode to all nodes on the network. The miner then writes the transaction to the Mempool. The nodes check the transaction for validity and if to accept or reject the transaction. Miners attempt to mine transactions’ block by applying the proof-of-work algorithm (nonce). The miner who validates a transactions’ block broadcasts it to the entire Bitcoin network. Remembering that each block is linked to its previous block by its hash. Other miners receive the block and confirm it, while broadcasting it thru the nodes on the entire network. As a user you can check the confirmation of your broadcasted transaction by entering the hash of your transaction in an online Blockchain explorer, to view all the details of your transaction.

  3. A miner picks transactions based on what’s most profitable, highest fees items are added first.

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#1759

Actually you could just start the node for a few minutes each day to sync it and shut it down if you want :slight_smile:

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#1760

  1. A full node is holding the whole data on the blockchain and a SPV is actually holding a small version of the datas on the network and in order to be able to perform a transaction needs to get query from a full node.

  2. It means a transaction request has been propagated from a wallet and spread through all the nodes.

  3. Miners select transactions with higher fees in the mempool.

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#1761

  1. A SPV has to connect with a full node to get a copy of the blockchain.

  2. Broadcasting a transaction means that a node accepts a new transaction and propagates it though the blockchain.

  3. Miners will typically choose the transactions with the highest transaction fees so they are rewarded more monetarily.

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#1762

  1. An example of an SVP is a cell phone wallet. It can not contain a full copy of the blockchain so it requests a partial copy of the blockchain from a trusted full node. In this way, an SVP can create transactions, sign them and broadcast them. And receive enough UTXO information to show wallet balances.

  2. A transaction is broadcasted when an SVP sends it out to a full node. Then the full node informs many other nodes of the transaction and each of those nodes adds the transaction to its own mempool.

  3. A miner generally picks transactions from it’s own mempool or from another nodes mempool whether or not that node is also a miner. The greater the fee, the greater the chance the miner will select that transaction. After the transactions are selected the mining begins. If that miner is first to create a block, that miner’s block is added to the blockchain next.

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#1763

  1. A SPV does not hold all the blockchain data, often because it takes up too much space (e.g. 100’s of GB on a phone). An SPV holds data as necessary (e.g. to create transactions), but must ask a full node for the data it doesn’t have.

  2. To broadcast a transaction is to send it, from the wallet that created it, to the nodes that synchronize the updates.

  3. A miner usually picks the transactions from the mempool which will reward them the highest fees, in terms of satoshi / byte.

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#1764
  1. SPVs are nodes that do not have the entire blockchain; they must trust full nodes to read the blockchain.
  2. A transaction is broadcasted when it is propagated to all the nodes.
  3. A miner picks a transaction from the mempool based on the highest transaction fees.
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#1765

1)SPV only has a part of the full Blockchain, and the node as the full version of the Blockchain
2)The transaction is sent to every other node on the network.
3)Miners normally chose transactions with the highest fee, then removes it from the mempool and tries to solve the target, when he/she succeeds then they will add the transaction to the block.

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#1766
  1. Full node has full copy of blockchain.
    SPV need to go through full node to get information from blockchain.
  2. Transaction is broadcasted means my wallet ( SPV ) sent transaction to full node. Then full node spread it to another nodes in network. Then is transaction added to mempool.
  3. Miners picks transactions with highest fee first.
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