Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1787
  1. What is the difference between a SPV (simplified payment verification) and a full node?
  • SPV do not save any copy of the blockchain data and have to request it to a Full Node.
  1. What does it mean when a transaction is broadcasted?
  • Transaction is being sent across the entire blockchain network so that Full nodes and Miners can verify it and put it in a block.
  1. How does a miner pick which transactions that gets added to the next block?
  • A miner either uses the transactions in its own MemPool, or fetches transaction for other nodes to get the juiciest ones (higher fees = first served)
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#1788

Actually at the moment its constructing a block it only relies on the ones in its own mempool, as transactions propagate through the network they will eventually get into the miners mempool. :slight_smile:

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#1789
  1. An SPV doesn’t contain a full copy of the blockchain.
  2. A node will broadcast a transaction by sending the transaction data to other nodes and miners for inclusion in the next block to be mined (or stored to the mempool)
  3. Transactions with the highest fees (satoshis per byte) are added to the next block
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#1790

A full node contains the whole blockchain and is connected to other nodes. SPVs do not store the blockchain and connect to one node to gather data which may not be fully up to date yet.

A transaction from a wallet is sent out and propagated through the network nodes, waiting in the mempool to be added to a block.

They prioritize transactions with the greatest fees so that they can claim those fees.

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#1791
  1. An spv is similar to a node but does not have the full list of the ledger in its data it need to ask the nodes about the information on the ledger.
  2. That means it has been shown to the network to be verified.
  3. Not always but mostly the miner chooses the block that is most profitable to mine.
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#1792

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A full node has a whole copy of the blockchain whereas a SPV has not and it relies on full nodes.

  2. What does it mean when a transaction is broadcasted?
    It means that a transaction is sent across the nodes.

  3. How does a miner pick which transactions that gets added to the next block?
    Miners are incentivized to receive fees for confirming transactions, hence they pick transactions with higher fees first.

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#1793
  1. SPV carries only a small porpotion of the blockchain and a full node has always the full, latest version of blockchain.
  2. When a transaction is broadcasted, it simply means that a wallet generated the transaction and sends it to nodes.
  3. He gets the transactions from the mempool stored in nodes. Miners usualy choose the most profitable transactions, meaning they choose transactions that have the highest satoshi:Byte ratio.
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#1794
  1. A full node has the entire blockchain stored a SPV not, it has to connect to a full node to verify the utxos etc.
  2. Broadcasting a tx means spreading it to all network nodes
  3. Usually they take the one with the higher fees
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#1795
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An spv doesn’t have a full copy of the blockchain. It needs to connect to the node to get the information.
  2. What does it mean when a transaction is broadcasted?
    It is propagated to all nodes on the network.
  3. How does a miner pick which transactions that gets added to the next block?
    He chooses the ones that have the highest fees.
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#1796
  1. SPV does not have a copy of the hole blockchaiin
  2. its been propagated to all nodes in the chain
  3. by transaction fees
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#1797

1: A SPV does not have the hole blockchain, it siphons it from the nodes.

2: The transaction bounces around between the nodes that put it in there mempool so that the miners can put it on the block that they mine.

3: They simply pick the ones whit the highest fees first and work there way down the list.

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#1798

1.) SPV’s are mostly used on Mobile Phones because they don’t have enough hard drive space to contain the entire blockchain so they ask a full node to see what utxo’s their addresses have and then send the transaction via the full node.

2.) It means that the new transaction was accepted by the nodes and then propagated to the entire network.

3.) The miner will pick the transactions with the highest Transaction fees first.

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#1799
  1. An SPV (e.g. on phone) is not a complete node, it does not download the whole blockchain
  2. The wallet put the tx together signs it with the private key and sends it to the nodes
  3. The miner pick the next tx for the next block from the mempool. He picks tx with high tx fees first.
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#1800

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A full node contains an entire copy of the bitcoin blockchain, whereas an SPV will only query a full node for relevant transactions.

  2. What does it mean when a transaction is broadcasted?
    When a transaction is broadcasted on the bitcoin network, all full nodes will receive a copy, validate the transaction and then store it in the mempool for miners to pick up.

  3. How does a miner pick which transactions that gets added to the next block?
    A miner will select transactions from the mempool based on the fees (satoshi) per byte, the transactions with most valuable fees will be included in the next block.

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#1801

1- An SPV (simplified payment system) is a small node (mobile) which can query from a full node. A full node is a computer on a network, not producing blocks, that has a complete copy of the blockchain. The node shares information with other nodes and can check that transactions make sense but unconfirmed.

2- A transaction is broadcast when it is distributed to other nodes.

3- Miners pick which transactions to add to the next block by which have the highest fees with the lowest byte size.

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#1802

1.SPV doesn’t have full copy of blockchain like full nodes do.
2. It is sent to all other nodes
3. Miner usually chooses transactions with highest fees

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#1803
  1. SPV (Simplified Payment Verification) doesn’t store entire blockchain while full nodes do. SPV requires a full node to send transactions.
  2. It means that a transaction was accepted and propagates to the network.
  3. A miner picks the ones with the higher transactions fees for their profit.
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#1804

  1. SPV doesn’t have the copy of entire blockchain and must see data from full node

  2. Transaction is sent to all nodes and miners so that they know there is some jobs to be done

  3. A miner pick transactions from the mempool with the highest fee in sat/B

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#1805

  1. SPV only records the transactions of a wallet address based on information they get from a full node which, unlike the SPV, can read the entire blockchain

  2. When a transaction is broadcast it means that a node spreads the work to other nodes (computers) that a transaction has occurred.

  3. The miner picks the transaction with the highest fees to be added to the next block.

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#1806

1.The difference is SPV doesnt have the full blockchain and needs a node to verify anything.
2. This means that the transactions travels to all nodes
3. The miner picks the block with the highest hash rate

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