Homework on Mempool - Questions

Blockchain and Bitcoin 101
#183

What is the mempool?
A bitcoin mempool is memory storage allocated by the node and mining applications to cache and queue pending unconfirmed transactions.

What happens if the miners can’t keep up with the rate of the new transaction?
If miners cannot keep up with new transactions in the mempool, the queue will grow, processing will be slow and the cost to prioritize transactions will increase.

How does a growing mempool effect transaction fees?
A growing mempool drives up the cost to prioritize transactions.

#184
  1. The Mempool is the Networks holding area for transactions that have been made but not yet put into a block yet.
#185

Good morning

  1. Mempool is a place where node keeps unconfirmed transactions, these unconfirmed transactions wait for miners who will pick them and add them to blockchain, after that unconfirmed transaction is filled/confirmed and deleted from nodes mempool.
  2. The time to fill transaction will increase (because it’s pending in mempool), mempool grows while other unconfirmed transactions pile up and this could be due to low fees that are paid to miners. So pay bigger transaction fee to get your transaction confirmed :slight_smile:
  3. Increase of fees, while the mempool expandes more and more transactions wait for to be confirmed, that drives fees up.
#186
  1. What is the mempool?
    the mempool hold all validated transactions. The miners choose transactions from the pool to generate the blocks. They choose transactions with highest fees first.
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    mempool is growing and transactions wait to be confirmed. Choose higher fees to shorten waiting time
  3. How does a growing mempool effect transaction fees?
    Fees will grow in case there a too many transactions. Because to get your transaction be used and confirmed you have to set gigher transactions fees. Like all the others will do
#187

  1. The mempool is a “memory pool” of unconfirmed transactions. While these transactions might make sense and eventually be added to the blockchain, they are collected and stored in the mempool, waiting until a miner can add it to a new block that will be added to the ledger.

  2. When miners can’t keep up with the rate of the new transaction, the mempool grows larger, transaction fees get higher and the transactions themselves take longer.

  3. A growing mempool causes transaction fees to rise, meaning that individuals must pay more in fees so that their transaction will enter the blockchain faster.

#188
  1. What is the mempool?
  • Is the area where unconfirmed transactions are kept until a miner picks them up to add them to a block.
  1. What happens if the miners can’t keep up with the rate of the new transaction?
  • The number of transaction rises, the Mempool grows and fees can increase.
  1. How does a growing mempool effect transaction fees?
  • When fees increase, miners will add to the block in the first place those transactions with higher fees.
#189
  1. What is the mempool?
    Mempool is all unconfirmed transactions
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The mempool gets bigger and the fees for transaction gets bigger
  3. How does a growing mempool effect transaction fees?
    If the mempool gets bigger the fee gets bigger, because the miners will more likely go for transaction with higher fees first.
#190

What is the mempool?

The Mempool is a facility which provides a holding pen for pending transactions.

What happens if the miners can’t keep up with the rate of the new transaction?

The Mempool grows in size and confirmation time delays can be expected.

How does a growing mempool effect transaction fees?

As the pool grows, miners will still pick the highest fees, until they have taken the higher fees smaller fees will have longer wait time and people might increase their fees to at the top ( if for instance one needed to make a quick transaction) of the picking, there for the fees will increase.

Ok, thought I add this, from the notes I took from the Video just to really cement this in my mind, here it goes.

While the transaction is propagating around the network to all the nodes the TX is still unconfirmed, until such time when a node verifies the TX and puts it in its mempool. The Miner then either picks from his own mempool ( a node, is a miner) or requests from another nodes mempool. When the miner incorporates a TX to his block the TX is confirmed. Even though for true confirmation we need to wait for some more blocks. This I believe has to do with two block at the same time and waiting for the longest chain as proof of confirmation. Because Miners are financially incentivised, the miner will pick TX with the highest fees ( as they collect the fees + Block rewards.

In order to create a Mempool, first the TX needs to be sent across the network for nodes to validate ( at this point the TX is still unconfirmed). The nodes add TX to their mempool or in case of a miner ( also a node) include it into their own block. Some mempools will look slightly different at times due to the propagation speed and distribution to all the nodes. Some nodes may receive TX earlier than others but eventually all nodes will have all TX, the full Ledger.

Regarding Fees, in the traditional system the fee is calculated on the percentage of the inherent value of the TX.

In BTC the value of the fee is calculated by Satoshi"s per Byte, it is the size of the package ( binary representation) rather than the inherent value transacted.

A TX with a single input and a single Output would take up very little space equating to a small fee. With a multiple input and output TX the Byte size of each input and output would add up to a larger fee.

Being that the Block size is restricted to 4Meg per block, Miners will look for larger fees ( satoshi per Byte) to propagate their block to maximize profit.

Miner are paid with Fees from the block + Block rewards, currently at 12.5 BTC

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#191
  1. Mempool are databases of unconfirmed bitcoin transactions held in nodes (although the particular entries in a node may differ), that are waiting to be verified into a new block by a miner.
  2. If the miners can’t keep up with the level of transactions coming in (as blocks are size limited, and their creation is time restricted), then miners will verify those transactions with the highest fees first.
  3. A growing mempool will ultimately lead to higher fees, as there is more competition for verification (cf. supply and demand).
#192

  1. A mempool is a data structure of unconfirmed transactions.

  2. The mempool gets bigger and so does the rate of unconfirmed transactions

  3. They can go up in price.

#193
  1. The mempool is the place where unconfimred TX are stored.
  2. the time of confirmaing TX will take longer.
  3. The TX fee will increase.
#194

Where Miners hold unconfirmed transactions in order to achieve consensus.

Mempool congestion rises and transaction times slow down.

Miners can chose transactions with higher transaction fees.

#195

  1. What is the mempool?

    The mempool is the staging area for unconfirmed transactions. A transaction stays there until a miner chooses to add them to the block that is being processed.

  2. What happens if the miners can’t keep up with the rate of the new transaction?

    The mempool grows and transaction processing times get longer.

  3. How does a growing mempool effect transaction fees?

    Miners may choose to require higher fees to process the transaction request during high volume occasions.

#196

  1. The mempool is a data structure within each node that includes a list of unconfirmed transactions.

  2. The number of pending transactions in the mempool increases and individuals will have to wait longer for their transactions to be processed.

  3. Fees will increase to incentivize miners to process more transactions.

#197

Not only mining nodes but every full node holds the mempool with unconfirmed transactions.

#198

  1. The mempool is a list of unconfirmed transactions awaiting miner insertion to a block.

  2. Traction delays due to back log.

  3. A growing mempool back log results in higher fees as users compete paying to prioritise transactions and miners select the most profitable transactions first.

#199
  1. The mempool is where the unconfirmed transaction are.
  2. The mempool will increase in size thus increasing the time to process the transactions.
  3. It affects its fees by increasing them.
#200 
**1. What is the mempool?**

When you send an input transaction that transactions must get validated from Full Nodes. When the Full Nodes validate your transaction that becomes a UTXO then a miner must add it to the blockchain so the transaction get completed. Until a miner deal with your and the rest of the network users UTXO’s, those inputs go to a list. That list is called mempool.

**2. What happens if the miners can’t keep up with the rate of the new transaction?**

When the transactions get at the point that miners cant handle the list then its gets bigger cause more and more input transactions are being added to the list and as a result you have long processing time of transactions.

**3. How does a growing mempool effect transaction fees?**

When you have a big mempool list then the transaction processing time gets really long. When that happens miners most of the times process transaction inputs with high fee value. Therefore if you want to get your transaction input to the next block you must increase your fee value a lot with that giving you the priority to get your transaction to the next available block.

#201 
What is the mempool?

Is the total of unconfirmed transactions

What happens if the miners can’t keep up with the rate of the new transaction?

The difficulty may increase or decrease so the miners can adjust to the rate.

How does a growing mempool effect transaction fees?

I think the wallets detect when the mempool is growing so it adjust to higher fees so the miners can mine the hihger fees transactions.

#202

1. What is the mempool?
Its a memory space used to store all the unconfirmed transactions, waiting for a miner to pick it up and append it to the blockchain.

2. What happens if the miners can’t keep up with the rate of the new transaction?
We will experience a grow of the mempool, meaning a congestion on the time to confirm transactions.

3. How does a growing mempool effect transaction fees?
Miners will pick first the most high fee transaction, so in a congested mempol, transactions with less fees of actual or next block fees, will have to wait long periods of time until the mempol return to the fees you set on the transaction. There are ways to increase the transaction fee in order accelerate the confirmation of your transaction.