Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1828

Thank you for the correction and the work that you do. You’re much appreciated.

2 Likes
#1829

Thank you! :smiley: it means a lot, I am happy to help students on the forum! :relaxed:

#1830

  1. SPV will on ONLY carry private keys and a full node carries the history of the blockchain.

  2. For other Nodes to listen and catch Txs to further the blockchain.

  3. Chooses the Txs offering the higher fees

1 Like
#1831

  1. An SPV is typically verifying a transaction without running a full network node contrary to what a full node does.

  2. It means that transaction is sent to all the participants (computers/nodes) in the blockchain.

  3. The miner picks a transaction that could give them a higher transaction fees.

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#1832
  1. SPV doesn’t have a copy of the whole blockchain. They rely on another node. This allows wallets to be stored on small devices like phones.
  2. It is sent to all other nodes on the network.
  3. Miners choose the transaction with the highest fees.
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#1833

  1. A SPV (smart phone), lesser storage space.
    A full node (Desk/lap top), larger storage space.

  2. It means that the transaction is confirmed and the entire network receives the same data.

  3. Miners will pick the transaction which is offering the highest transaction fees.

1 Like
#1834

1.the difference with spv and a full node is that, a full node need to download all the transactions and blocks that has been taken ever since while the spv downloads only the header of the blocks.
2.It means that it is being recorded to every node and provides transparency of the transaction.
3.the miner picks the highest block reward or tx fees from the mempool for them to earn profit.

2 Likes
#1835
  1. SPV doens’t see the full blockchain it will have to connect with a node to see the full blockchain. A full node sees the full blockchain. An SPV is usually used on a mobile device.
  2. a transaction broadcasted is when a block is added and validated it sends this transaction to all other nodes.
  3. a miner will pick the transaction with the highest transaction fee and with the smaller size in bytes.
1 Like
#1836

Ah, of course. The transaction data on the block will go along for the ride what a block gets broadcasted. Thank you for the reminder :slight_smile:

#1837
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Full node verifies transactions and will then propagate further the information to the surrounding nodes. It has computing power. SPV on the other hand may not have the same amount of computing / hashing power, thus it still has to rely on a full node to get its transaction verified.
  2. What does it mean when a transaction is broadcasted?
    The transaction is propagated through the network of nodes for them to verify that a transaction has occurred.
  3. How does a miner pick which transactions that gets added to the next block?
    A miner will pick the transaction with the best incentive in sats/B
1 Like
#1838
  1. What is the difference between a SPV (simplified payment verification) and a full node?

A. SPV’s are nodes that do not contain a full copy of the current blockchain. They dial into full nodes with queries in order to read the full blockchain. An example would be the use of a phone instead of a computer, as a phone cannot hold the size of the whole blockchain.

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

A. New transactions are selected from the mempool by miners. These transactions are written into a block that will compete with other miners in solving an algorithm. Once the algorithm is solved, their block is confirmed and all the data within that block, including transactions, is broadcast out to all full nodes on the network.

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

A. A miner selects transactions from the collective mempool to add to their block. Usually the miner chooses the transactions with the highest fees/rewards, giving them incentive to create accurate and honest blocks.

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#1839

Transactions get broadcasted first, so miners can pick it up from their mempools and put it in a block, once a block gets mined the block is propagated (containing the transaction) :slight_smile:

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#1840
  1. A spv doesn’t store the blockchain and needs to read information from a full node. A full node is a miner too and has the fulle blockchain stored.
  2. A node gossip the valid tx to other nodes in the network.
  3. The miner choose tx from the mempool with the higher fees since it will make them more profit if they are first of mining the next block.
1 Like
#1841

Thank you Alko89 for the correction :slightly_smiling_face:

#1842

Thank you, Alko! I will remember this now - that transactions are broadcast first.

#1843

  1. AN SPV does not have a copy of the blockchain, mainly used as a wallet that must communicate to a full node to broadcast new transactions and get a list of transactions. Communicates with multiple full nodes.

  2. A transaction is broadcasted is broadcasted from wallets or SPVs or full nodes to a full node that then rebroadcasts to the other nodes, until it reaches the entire network.

  3. It’s an optimization problem that prioritizes the amount of fees that the miner will collect on the block. Some transactions are large in terms of bytes but may have a low fee attached. So those may be ignored in the mempool until the mempool is smaller than the block size.

1 Like
#1844

What is the difference between a SPV (simplified payment verification) and a full node?
SPV is typically used on mobile that just “sends message to the nodes” for a request for the transaction where as a full node is directly copied and stored on the blockchain.

  • What does it mean when a transaction is broadcasted?
    It is shared on to the blockchain and publicly shared right before being confirmed and read on the blockchain
  • How does a miner pick which transactions that gets added to the next block?
    Depending on which block that has the longer pow and more difficult blocks
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#1845

  1. Between SVP which must ask node about blockchain and node, the difference is that nodes have the whole visible blockchain (too much space for svp of mobile phone).

  2. Nodes broadcast transactions to other nodes, they spread these transactions info around the whole network.

  3. Miners pick transactions from the mempool to add them into their next block. Regarding price to win per byte of transaction space , in satochi/ byte pricing for fee, they fill their block prioritizing higher fees fixed transactions and then pick the lower prized ones.

1 Like
#1846

  1. A SPV only contain a small part of the blockchain, but it can read information from a full node.

  2. It means that it is spread among all nodes.

  3. The choose those with the higher tx fees

1 Like
#1847

Homework on Bitcoin Ecosystem - Questions

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

SPVs reference the blockchain, whereas as full nodes contain entire copies of the blockchain.

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

It means it is propagated across the network, across all other nodes.

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

Miners pull transactions from the mempool, typically the ones with the higher fees.

1 Like