Homework on Mempool - Questions

Blockchain and Bitcoin 101
#2409

Homework on Mempool - Questions

  1. What is the mempool?

The Mempool is the Cryptocurrency node’s mechanism for storing information on unconfirmed transactions

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

The confirmation of transactions with lower fees can take hours if not even days and the fees generally are going up.

  1. How does a growing mempool effect transaction fees?

As there is only a limited amount of transactions that can be included in a block, but there is no limit on the transactions that can occur any given time, the transactions which are resulting in the highest income for the miner will be prioritized. This generally results in higher fees as there is high demand and short supply

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#2410

  1. Memory area inside a Node or Miner which holds all unconfirmed validated TXs that have not been confirmed

  2. Que builds up and fees become higher

  3. The fees will go up

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#2411
  1. Stores pending transactions.
  2. Mempool gets larger.
  3. Fees increase.
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#2412

Homework on Mempool - Questions

  1. What is the mempool?Mempool is a data structure contained all the unconfirmed transactions (until the trasaction is confimed )

  2. What happens if the miners can’t keep up with the rate of the new transaction? then the mempool will increase the transaction unconfirmed make it larger (blocks every 10 minutes)

  3. How does a growing mempool effect transaction fees? it makes the fees higher because, miners always goes for the highest fee

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#2413

  1. Mempool is a list of unconfirmed transactions: whenever a wallet creates a transaction, a copy of it shared to the whole network in order to be validated, but until a miner confirms it, this transaction goes into the Mempool.

  2. Miners are incentivized by receiving return of fees so they can add it to their block, that’s why they give priority to transactions with higher fees. By doing so transactions with smaller fees will stay in the “waiting list” longer.

  3. A growing mempool leads to higher fees on new transactions.

(Once a transaction is in the mempool sooner or later it will be picked up by a miner and so confirmed. Once the transaction is confimed it’s removed from the mempool).

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#2414 
What is the mempool?

A mempool is a data structure that contains a list of unconfirmed transactions.

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

The mempools grows larger. Confirmations will take longer

How does a growing mempool effect transaction fees?

The fees go up higher

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#2415

The mempool is a file on every node that contains all the unconfirmed transaction that need to be mined.

The mempool will increase in size and will result in longer transaction times.

The transaction fees will probably increase because the miners pick the highest transaction fees first because that is how they get paid.

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#2416

  1. it is a place where unconfirmed transactions wait for a miner to pick them up to get added to the next block.

  2. the pool grows bigger and transaction times take much longer

  3. because of the competition for transactions to get added to blocks, larger fees are offered so miners will pick it first

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#2417
  1. mempool is a list (pool) of unconfirmed transactions
  2. they will priorice transactions with higher fees
  3. the fees rise up
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#2418
  1. Pool of unconfirmed transactions
  2. Transaction times takes longer and the list grows bigger
  3. Fees goes up. Miners pick the highest transactions fees first
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#2419
  1. Mempool is register of unconfirmed transactions waiting in each node to confirm.
  2. Mempool will be filled more transactions and average time and cost of transaction will grow.
  3. Transaction fees will be growing.
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#2420

The Mempool :brain:

  1. What is the mempool?
    The mempool is where full nodes store all the unconfirmed transactions that have been broadcasted to them over the network.

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The number of unconfirmed transactions will increase which leads to a backlog where more profitable transactions for the miners will be prioritized for processing.

  3. How does a growing mempool effect transaction fees?
    Whenever the number of transactions in the mempool exceeds the capacity of the block being mined the miners usually prioritize transactions that yield the highest fees per byte to them. This way anyone who wants their transactions processed in a timely manner has to increase the fees they pay accordingly. Transactions that are not time sensitive can still be transmitted with small fees and will just take more time to be picked up.

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#2421

Hi @FinancialFreedom,

That’s very interesting, thank you! I wasn’t aware of a minimal transaction fee that can lead to a rejection of the “cheap” transactions. Can you elaborate on that or point me to some reference to read up on that?
It would be very much appreciated! :pray:

Cheers,
lxndr

#2422
  1. When a wallet constructs a transaction, it sends it to all the different nodes that it can communicate with in the network, those nodes send it to other nodes and so on, until eventually all nodes have it.
    Until a miner picks up that node it is unconfirmed, so after a a node validates the transaction to make sure it is not breaking any rules and that you are not spending bitcoin that you don’t have, it is then validated but in waiting for a miner to pick it up. During this time the unconfirmed transaction is moved to the nodes mempool. So the mempool is the place that nodes hold their validated but unconfirmed transactions while waiting for a miner that wants to confirm it.
    2 Then the transaction is held in the nodes mempool until a miner can confirm it.
    3 A growing mempool will increase transaction fees. If there is a lag in transaction confirmations, then instead of waiting longer the issuer of the transaction can, and will in many cases choose to pay a higher transaction fee. Since the miner will choose the transaction willing to pay a higher fee, in order to move closer to the front of the line. This creates more competition on the network to get transactions confirmed in a timely manner and will push up the price of transactions overall.
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#2423

  1. The mempool is where all unconfirmed transactions await for a miner to confirm the transactions and put them into a block.

  2. If miners can’t keep up then the mempool grows bigger and transaction times take longer.

  3. a growing mempool affects transactions fees because miners will look for transactions that have higher fees as well as prioritize any transactions that have more satoshi’s per byte.

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#2424
  1. Mempool is all the transactions that have not been verified.
  2. The fees increase.
  3. The miners will always complete the transaction with the highest fees. So the more transactions in the mempool the fees will increase.
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#2425

Its not a specific value that is picked and its also not really part of the protocol but part of implementation in Bitcoin core.
By default if the mempool exceeds 300MB it will start to remove cheaper transactions and it will also remove transactions that are older than 14 days.
This are parameters in the node though and can be changed by the user running the node. :slight_smile:

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#2426

  • What is the mempool?
    The mempool is a list of unconfirmed transactions

  • What happens if the miners can’t keep up with the rate of the new transaction?
    Miners choose more profitable transactions. If the miners can’t keep up the mempool grows larger and there are longer transaction times.

  • How does a growing mempool effect transaction fees?
    Transaction fees also grow to have the transaction included in the blockchain sooner.

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#2427

Thanks for the explanation @Alko89!
That was completely new to me and forms a nice puzzle piece in my big picture :framed_picture: :grinning:

#2428

  1. What is the mempool? :thinking:
    A database structure that stores unconfirmed transactions :negative_squared_cross_mark: :heavy_check_mark: :writing_hand: :crossed_fingers:

  2. What happens if the miners can’t keep up with the rate of the new transaction? :scream:
    They collaborate with other nodes who have mempool too; miners make sure transactions with the highest fees will be prioritized first and move such transactions into the block they produce :star_struck:

Good thing, mempool algorithm organizes unconfirmed transactions properly based on fees, in that way… It is easy for nodes to keep up with the transactions…

  1. How does a growing mempool affect transaction fees? :exploding_head:
    You pay less if you transact 1 Bitcoin at once than creating 5 transactions for 1 Bitcoin. Miners prefers transactions that doesn’t take much space in their block :money_mouth_face:
    Does this answer the question? :mask:
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