Homework on Bitcoin Ecosystem - Questions

[theRealLos]

1. And SPV does not have a full copy of the blockchain saved locally, and therefore needs to query full nodes to assert the validity of a transaction. It is more common in mobile devices which may have storage or data constraints.
2. It is sent to the mempool in other full nodes where it awaits to be included in a new block.
3. The miners chose transactions awaiting confirmation out of the mempool up to the maximum block size using a fee preference criteria. Transactions paying the higher fees will be prioritized, but size in the block is also a consideration given that a high fee transaction might take too much space in the block.

[Alko89]

@msdhillon5

Depending on which block that has the longer pow and more difficult blocks

Transactions don’t have difficulty, but they have a size in bytes and miners prefer tx with higher sat/byte ratio.

[RagnarAces]

1. SPVs since they dont have access to the entire blockhain , they will have to rely on a full node to provide the information
2. When the information is broadcasted means that is passed along other nodes in the network.
3. The miner looks from transaction in the Mempool and then it will look at the fee for the particular transaction.

[cgolas]

1. SPV does not contain the entire blockchain but references an existing node for information. A node contains the full copy of the block chain
2. A node will broadcast a transaction to the mempool for a miner to accept and write to the block.
3. A miner bases it on transaction fee being paid for that transaction to be written to the block. Higher fees typically are picked up and written faster than lower transaction fees due to incentives.

[Co-Star]

@ivan

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

An SPV doest not have a full version of the block chain where a node does. An SPV connects to a node to obtain a full version of the block chain.

@ivan

What does it mean when a transaction is broadcasted?

The transaction is being spread across the network.

@ivan

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

A miner will always choose transactions with the highest fees first.

[meganova]

1- an spv node does not have a copy of the whole block chain, but has access to it (like a cell phone)
2- it is sent out to the nodes
3- normally the ones with the highest transaction fees

[mwonder]

@ivan

• hat is the difference between a SPV (simplified payment verification) and a full node?
• What does it mean when a transaction is broadcasted?
• How does a miner pick which transactions that gets added to the next block?

1. what is the difference between a SPV (simplified payment verification) and a full node?
   SPV does not have a record of the whole blockchain whereas the full node does

2. What does it mean when a transaction is broadcasted?
   The accepted transaction is sent to all the other nodes like a broadcaster

3. How does a miner pick which transactions that gets added to the next block?
   Usually pick the transaction with the highest fee per kilobit

[kryptokrymmenos]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   SPV’s holds private keys and generate transactions but full nodes store the whole blockchain.

2. What does it mean when a transaction is broadcasted?
   It is sent to a node to be picked up by a miner to add to a block.

3. How does a miner pick which transactions that gets added to the next block?
   A miner from the previous block takes transactions from the nodes to generate another block to add onto the chain (I think…)

[Kim]

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

1. A SPV is a small node that needs to trust a full node when it wants to read the blockchain. It
   hasn’t the entire blockchain on itself but it can querry the blockchain from a full node. A full node
   has the entire blockchain on it.

What does it mean when a transaction is broadcasted?

2. It means that a wallet has checked which UTXO’s you can use for a transaction. It propagates this
   transaction to a node which puts it in the mempool waiting for a miner to come and to put it into a
   block.

@ivan

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

3. He picks the transactions from a mempool that have the highest fees, i.e. the highest sat/B

[Jari_Landman]

1. A SPV does not have a copy of the blockchain. It only stores the private key. So it can make and sign transaction, but has to rely on others nodes to know the spendable amount (UTXOs).
2. It means that your wallet uses your UTXOs to send money to another address. The wallet constructs and signs this transaction and will sent it to the nodes it can communicate with to verify the transaction. They will sent the transactions to other nodes in their turn. All these nodes put the new transaction In their mempool (if the transaction makes sense). There it is available for miners to pick it up.
3. The miners are financially incentivized. They will ask a node for its mempool and select the transactions with the highest fees.

[Amanda88]

@ivan

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

the difference is a full node has the full version of the blockchain , and an SPV has a small simplified portion but can always access the blockchain for information through nodes on the network.

@ivan

What does it mean when a transaction is broadcasted?

when a transaction is broadcasted it means the inputs and outputs have been verified and the transaction can be added on the blockchain.

@ivan

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

miners pick transaction with the highest fees.

[carolyn]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   A full node have complete copy of the blockchain, can verify and relay transactions and are resource-intensive and take a long time to initialize
   SPV is thin and lightweight wallets, cannot verify validity of transactions but can check and get data from full nodes.

2. What does it mean when a transaction is broadcasted?
   The transaction is propagated/spread to other nodes in the network

3. How does a miner pick which transactions that gets added to the next block?
   Miners pick transactions from mempool prioritizing higher fees. Mempool contains verified transactions ready to be added to the blocks.

[Alko89]

@kryptokrymmenos

A miner from the previous block takes transactions from the nodes to generate another block to add onto the chain (I think…)

A miner picks transactions from its own mempool based on sat/byte ratio

[mvernon]

1. What is the difference between a SPV (simplified payment verification) and a full node?
   -It is possible to verify bitcoin payments without running a full network node. And this is called simplified payment verification or SPV. A user or user’s bitcoin spv wallet only needs a copy of the block headers of the longest chain, which are available by querying network nodes until it is apparent that the longest chain has been obtained. Then, wallet using spv client get the Merkle branch linking the transaction to its block. Linking the transaction to a place in the active chain demonstrates that a network node has accepted it, and blocks added after it further establish the confirmation. https://en.bitcoinwiki.org/wiki/Simplified_Payment_Verification
2. What does it mean when a transaction is broadcasted?
   -This means that the transaction has been sent to the other nodes in the network.
3. How does a miner pick which transactions that gets added to the next block?
   -Typically, miners will take the transactions that have the highest fees associated with them and add these to the block.

[dFresh]

1. SVP is a small node (mostly stores relevant transactions and queries the blockchain). It actually has to use/trust a full node for blockchain data (like sending transactions etc.). The SVP has a private key, but not a full copy of the blockchain/ledger. While, a full node stores the whole blockchain.

2. A transaction is broadcast once it’s validated by a node(s) and placed in a mempool. It soon propagates to other nodes and later selected by miners for confirming.

3. Most likely the miner picks up transactions with the highest fees (or best byte to fee ratio) in the available mempool.

[GiantDad]

The difference between an SPV and a full node is full nodes contain the blockchain in entirety while SPVs hold portions of the blockchain ledger and communicate with other SPVs or nodes to confirm transactions.

When a transaction is broadcast it means that it has been picked up by nodes and relayed to other nodes who will verify its validity, once deemed valid it will be added to the mempool.

Miners pick transactions, of course, by way of transaction fees. The transactions with the higher fees will tend to be confirmed and mined first, hence why when sending small amounts of BTC with lower transactions fees can take longer than the standard 10 minutes it takes the blockchain to mine a new block

[PapiChullo]

1. SPV wallets don’t store all UTXO data and must get data from full node.
2. It propagates the transaction to the network.
3. Miner picks the unconfirmed transactions from the Mempool based on transaction fees and hash rate.

[cryptophile]

1. A Full Node contains a full copy of the complete blockchain, and SPV instead communicates with another full node when it requires information from the blockchain.

2. When a transaction is broadcasted it is sent by a wallet on the Bitcoin network and then relayed (if valid) on to all other nodes, ending up in the mempool of these nodes.

3. Miners pick transactions from the mempool based on their statoshi/B value until they have a full block or the mempool is empty.

[Tose]

SPV is like a mobile phone that can not hold the entire blockchain and needs to query a full node like a desktop computer capable of holding the entire blockchain.

A transaction is broadcasted when it hits 6 confirmations from miners making the block under 10 minutes with all nodes being syncronized accordingly.

A miner guesses the correct nonce by making sure it is within the target and this will create the next block.

[bdrockwell]

An SPV runs off the internet and can allow mobile users to interact with a blockchain but it is not a full node, and less secure.

A transaction is broadcasted when the Wallet has created a logical transaction and is sent out to the nodes for confirmation.

Miners pick transactions that will pay the most in transaction fees.