Homework on Bitcoin Ecosystem - Questions

Blockchain and Bitcoin 101
#1908

Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between an SPV (simplified payment verification) and a full node?
    Answer: An SPV is a small node that trusts the full node elsewhere (like a mobile phone etc) does not have a copy of the blockchain and needs to access it externally in order to verify if true whereas a full node already has the entire copy of the blockchain internally.

  2. What does it mean when a transaction is broadcasted?
    Answer: It’s propagated to all of the nodes to share the transaction with other nodes in the network

  3. How does a miner pick which transactions that get added to the next block?
    Answer: It picks the ones from the mempool that pay the most or highest in fees.

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#1909
  1. What is the difference between a SPV (simplified payment verification) and a full node?

Full nodes keep the whole blockchain locally while SPV queries multiple nodes to get the blockchain.

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

It means that it’s ready for nodes to pick it up and propagate to other nodes.

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

Transactions with higher fees are more likely to be accepted by miners.

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#1910

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

a simplified payment verification doesnt host a full network node.

What does it mean when a transaction is broadcasted?

means is propagated to al the nodes in the network

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

The miner picks the highest fee per byte untils fillsup the block

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#1911

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SVP does not hold the full blockchain based on limited space whereas a full node does hold the entire blockchain ledger. So the SPV will query a full node to verify transactions. A mobile phone would be a SVP.

  2. What does it mean when a transaction is broadcasted?
    Your Wallet will broadcast your transaction out to network nodes. The node will then add it to the mempool ready for mining.

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

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#1912

  1. An SPV does not contain the full blockchain. It queries multiple nodes for specific blockchain data until it is confident in the truth.

  2. When a private key signs a transaction and sends it to a node.

  3. A miner will normally aim for the transaction with the highest fees.

I have one question, feels silly but here goes. Why do we have to wait for 6 confirmations? Isn’t that 6 blocks which would take 60 minutes? I know this isn’t right as BTC is much faster than that but if someone can elaborate I’d appreciate.

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#1913

Theoretically two miners can continue finding blocks on each separate chains at the same time, it could go forever, but after 6 blocks this becomes highly improbable and can be considered the split was resolved (or didn’t exist).
It is all about probability, having two miners mine a block at the same time 6 times in a row is highly improbable, kind of the same as collisions in hash functions, they are possible but highly improbable. :slight_smile:

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#1914

1. What is the difference between a SPV (simplified payment verification) and a full node?
SPV allows a node to verify if a transaction has been included in a block, without having to download the entire blockchain. With SPV, full nodes serve lightweight nodes by allowing them to connect and transmit their transactions to the network and will notify them when a transaction affects them.

2. What does it mean when a transaction is broadcasted?
The transaction has been requested and is then propagated across the network (added to the mempool of participating nodes).

3. How does a miner pick which transactions that gets added to the next block?
The higher the fee, the sooner the transaction will be picked up by the miner.

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#1915
  1. The difference between an SPV and a full node is that an SPV only has a partial version of the blockchain.
  2. When a transaction is broadcast it means it is sent out across to the network to nodes and if it is a valid transaction the node will put the transaction into its’ mempool.
  3. A miner will check his mempool and pick transactions with the highest fees to add to the next block.
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#1916
  1. Nodes have full copies of the blockchain. PSV’s look up parts of the blockchain through the nodes.
  2. When you sign a transaction and want it to b e put into the blockchain by a miner.
  3. Based on who is paying the highest transaction fee
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#1917
  1. What is the difference between a SPV (simplified payment verification) and a full node?

An SPV is a type of node that doesn’t keep the entire blockchain rather they query and download only the block headers from full nodes on the network. A full node keep a copy of the entire block chain and runs verification checks. These nodes tend to take larger amounts of data and processing power to run efficently.

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

If a transaction is created and accepted by a node it’s added to the nodes mempool. Having been accepted, the node will now tell every directly connected node about the transaction and its addition to the mempool. If the connected node also accepts the transaction the process is repeated.

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

Each transaction will have a fee attached to it. The miners determine the value of a transaction by its payment per amount of data. WRT Bitcoin this is calculated by satoshis/bit. The miner chooses the transactions from its own mempool that will result in the highest amount in fees paid as it can fit in the block. WRT bitcoin this is 1MB.

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#1918
  1. The spv doesnt have a node so must get the data from node.
  2. The UTXO is accepted and is synced with the whole network.
  3. It will generally look for the highest transtaction fee.
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#1919

Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A full node has a full copy of the blockchain, the SPV will query the nodes to keep up to date with the blockchain.

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

It means the network is told of a possible update, by a wallet or node.

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

The miner has a certain amount of space available in the data block, they choose the most transactions that have higher transaction fees that they can fit into a possible future block.

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#1920
  1. The only posses a small portion of the blockchain and request complete blockchain data from a node.
  2. Nodes accept transactions and spread it through the network
  3. It goes to the mempool
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#1921
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A Simplified Payment Verification differs from a full node in that it does not host a copy of the blockchain, nor does it store any private keys. An SPV queries a full node in the blockchain to carry out it’s operations. A full node host a full copy of the blockchain, and can store private keys.

2 What does it mean when a transaction is broadcasted?
Broadcasting a transaction means that a bitcoin wallet or node has sent a transaction request for propagation throughout the blockchain to begin the process of consensus.

  1. How does a miner pick which transactions that gets added to the next block?
    Miners choose the transactions with the highest fees for the next block.
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#1922
  1. What is the difference between a SPV (simplified payment verification) and a full node?

SPV doesn’t store the full information like a full node. But a SPV can query information from a full node to get updated.

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

The transaction is valid, the node put this transaction into Mempool, wait the miner come to pick it up.

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

The transactions with the highest transaction fee.

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#1923
  1. SPV does not have full data of the chain.
  2. Wallet checks your unspent transactions (utxo) - and if they are enough to cover the transaction you want to make, a message is being sent to the network for verification of the truthfulness of your wallet.
  3. He takes it from manpool, and he chooses the one who paid more fees to earn money :money_mouth_face:
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#1924
  1. What is the difference between a SPV (simplified payment verification) and a full node?
  • SPV rely on Full node to access information of blockchain it does not contain whole information of the blockchain it only has information related to the address that are linked to that SPV , while a full node has whole blockchain data.
  1. What does it mean when a transaction is broadcasted?
  • it means your sent transection is in the active nodes of the blockchain it also means its in mempool waiting to be picked up by miners.
  1. How does a miner pick which transactions that gets added to the next block?
  • miner picks transection on based of its transection fees and legitimacy.
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#1925
  1. An SPV does not have the whole blockchain on it’s system, it links to one node to verify the blockchain. A full node has the whole blockchain on it’s system.
  2. It it sent to the network, sits in the mempool awaiting miners to add it to a block and the blockchain
  3. The ones with higher transaction fees get picked first
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#1926
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    Full node has the entire copy of the blockchain whereas a SPV is scale down node with limited functionality and does not a full copy of the blockchain. SPV must connect to other full nodes for the entire blockchain.
  2. What does it mean when a transaction is broadcasted?
    The miners announce them solving the block and adding to the blockchain.
  3. How does a miner pick which transactions that gets added to the next block?
    Usually based on the highest reward
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#1927

1 What is the difference between an SPV (simplified payment verification) and a full node?
Full nodes have the entire copy of the blockchain which verifies transactions, the SPV stores relevant transactions to its address. Which requires to connect to the full node.

2 What does it mean when a transaction is broadcasted?

The transaction is propagated through the network

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

Miners generally pick the transactions with the highest fee.

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