Homework on Mempool - Questions

Blockchain and Bitcoin 101
#2870
  1. The Mempool is a “waiting area” for Bitcoin transactions that each full node maintains for itself. After a transaction is verified by a node, it waits inside the Mempool until it’s picked up by a Bitcoin miner and inserted into a block.
  2. Transaction traffic jams, Once the Mempool reaches full capacity, the nodes start prioritizing transactions by setting up a minimal transaction fee
  3. Slower confirmation times = higher fees.
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#2871

  1. Mempool is a list of the unconfirmed transactions

  2. The mempool will grow larger

  3. The larger the mempool the longer it will take to confirm transactions. This means one will. have to pay more to have their transaction confirmed in a “reasonable” amount of time, forcing the transaction fees higher

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#2872

  1. Mempool is where unconfirmed transactions are stored waiting to be confirmed by miners. Each node has a mempool waiting for miners to pick them up.

  2. If Miners can’t keep up with rate of new transactions, this increases the size of the mempool and creates longer transaction times to complete unconfirmed transactions.

  3. Growing mempool will increase transactions fees since miners are financially incentivized to pick out highest fees. This is because blocks have limited space.

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#2873

It is a list of all unconfirmed transaction that have been broadcasted to a particular node. If miners can’t keep up with the rate of new transactions more miners will come in because there will be an incentive to mine as they get paid by the fees. A growing mempool should increase fees as an incentive for more miners to come and make money.

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#2874

Homework on Mempool - Questions

1. What is the mempool?
It is the queue of unconfirmed, valid transactions that are stored in a node

2. What happens if the miners can’t keep up with the rate of the new transaction?
If the amount of unconfirmed transactions grows faster than the capacity of processing transactions, the mempool will became bigger, meaning that the amount of time you should wait for your transaction to be confirmed may grow considerably. In fact, in the “Unconfirmed transaction count” graph that was shown in the lecture, you can see a case when it reached 40.000 unconfirmed transactions, and after a few hours it decreased almost to 5.000, growing later again to 40.000.

3. How does a growing mempool affect transaction fees?
As a growing mempool implies that are more pending transactions, and considering that miners prioritize higher fees, then those transactions that offer a higher fee will be processed first (keeping closer to the regular amount of time that a transaction takes), while the ones with lower fees will take larger amounts of time to be verified. Naturally, this will push transaction fees higher, as an effect of supply and demand.

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#2875 
What is the mempool?
    - The list of unconfirmed transactions.
    - The priority is sorted based on satoshi's/MB (fee/size of represented transaction)
      (highest profit first)

 What happens if the miners can’t keep up with the rate of the new transaction?
    - mempool grows, and fees would increase (to get faster processing)

 How does a growing mempool effect transaction fees?
    - Fees would increase, as there is more competition for the resources. (Supply vs demand)
    - higher fees - and specifically higher "satoshi's / MB" are processed first.
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#2876

1.What is the mempool?
Mempool is a pool of un conformed transactions.
2.What happens if the miners can’t keep up with the rate of the new transaction?
The number of transactions to be confirmed in the mempool grows larger and the confirmation of the transaction tales longer time.
3.How does a growing mempool effect transaction fees?
As miners are incentivised by the fees they earn they pick only transactions with the highest fees attached.

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#2877

  1. a queue of unverified transactions

  2. transaction verifications are delayed

  3. higher fees and simpler transactions first in line

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#2878

  1. Mempool is a data structure that holds unconfirmed valid transactions. This data structure is queried by miners when they are looking for transactions to add to the next block.

  2. Mempool increases and transaction time goes up.

  3. A growing mempool means higher fees across the network.

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#2879
  1. What is the mempool?
  2. What happens if the miners can’t keep up with the rate of the new transaction?
  3. How does a growing mempool effect transaction fees?

1)The mempool is where unconfirmed transactions wait to be picked up and added to the blockchain. it consists of a list of unconfirmed transactions.

  1. If miners cannot keep up, then the mempool grows.

  2. There is an associated cost with the transaction process. This creates competition between miners. The miners can then neglect lower fees as they look at the size of the transaction in terms of bites.

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#2880
  1. A pool of all unconfirmed txs each node has (can differ for each node)
  2. Tx fees get more expensive as people have to compete with each other with better tx fee per byte.
  3. The bigger the mempool, the longer it might take you to get your tx through if you put an average miner fee. If you need to get a tx through fast you need to pay higher fee
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#2881

  1. What is the mempool?
    The mempool is a where all the valid transactions wait to be confirmed by the Bitcoin network. Each node maintains its own mempool.

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The mempool grows in size.

  3. How does a growing mempool effect transaction fees?
    Transaction fees increase and transaction with lower fees take longer to confirm as miners are incentivized to handle transactions with higher fees.

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#2882

Answers:

  1. The mempool is the list of validated but unconfirmed transaction maintained at each node;
  2. Miners will only choose to confirm transactions with the highest fees and low fee transactions will be delayed until volume eventually subsides;
  3. A growing mempool affects transaction fees such that miners will first pick transaction to add to blocks that have the highest fees as they are incentivized to do so. This will mean that when there is a large volumes of transactions, fees may increase for subsequent trades if traders want faster execution;
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#2883
  1. What is the mempool?

Transaction purgatory - Database of unconfirmed transactions waiting to be mined by miners.

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

They chose the one with the highest fee’s first.

  1. How does a growing mempool effect transaction fees?

More demand = higher fee’s

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#2884
  1. Mempool is a unconfirmed transactions count.
  2. Transaction confirmation time will rise.
  3. Transaction fees will rise.
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#2885
  1. Mempool is a list of unconfirmed transactions.
  2. Mempool gets bigger, takes longer time for transaction.
  3. Transaction fees go bigger.
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#2886

1 - The mempool is a location on each node that contains all the unconfirmed transactions. Each node will have different capacities, and will result in each node having mempools that are unique in their size and the list of transactions that they will have. From here miners will pick and choose the transactions to append to the blockchain.
2 - The mempool will continue to grow, and can result in longer transaction confirmation times.
3 - A growing mempool would incentivise miners to focus on mining transaction that have the offer the most amount of Satoshi’s per byte, this maximises their profit as each block can only contain 1MB of transactions.

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#2887
  1. What is the mempool?
    The mempool is a database of the transactions on the nodes before the miners take them and put them in the blocks
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    Mempool increases along with the fees
  3. How does a growing mempool effect transaction fees?
    Fees rise
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#2888
  1. Holding place for unconfirmed transactions waiting to be mined.
  2. The mempool gets backed up and it takes longer for transactions to be confirmed.
  3. If mempool is fees go up. People are willing to pay more in fees so their transaction can be confirmed and passed to the next block.
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#2889

  1. A mempool is a list of unconfirmed transactions that are waiting to be confirmed

  2. The mempool size increases as it creates a backlog of unconfirmed transactions.

  3. The fee can go up as the miners can choose which transactions to confirm based on the fee they get.

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