Homework on Mempool - Questions

Blockchain and Bitcoin 101
#2950
  1. The list of unconfirmed transactions that have been verified by nodes but waiting on miners to add them to blocks.
  2. Then the mempool continues to grow with more and more unconfirmed transactions. This in time would increase the time to finality for a transaction from 10 minutes for BTC to potentially even more time.
  3. The transaction fees will grow with the mempool, so a larger mempool requires higher fees to get your transaction processed quickly as miners will not want to add transaction with low fees because they would loose out on potential revenue.
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#2951

  1. A mempool is a pool of utxos that have been verified by nodes but not yet confirmed by miners and added to the blockchain.

  2. The mempool will grow in size if miners can’t keap up

  3. A large mempool will give miners more options and so people will have to pay more to get filled. The rigs qnd the time spent arent free and mining literally costs energy/dollars so its understandable I mostly trade on exchanges like kraken and phemtec and so i havnt really dealt with this issue as im sure they have there own way of providing liquidity as do the major stock exchanges. I wonder if its more profitable to provide liquidity in btc or in the stock market?

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#2952

You can’t really provide liquidity on centralized exchanges. But you can provide it on dexes like Uniswap, where you can also provide liquidity in bitcoin backed token like WBTC. It can be quite profitable if you have a good pair to provide liquidity. :slight_smile:

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#2953

The mempool is all the unconfirmed transactions waiting for a miner to pick them up to confirm and add to the next block.

If the miners can’t keep up with the new transactions the mempool grows larger

Transaction fees increase with a larger mempool since the miner has an incentive to always chose the higher transaction fees first.

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#2954

Got a question here and sorry if im posting on the wrong thread but what happens to the utxo that are not included on the block chain? What if every single miner decides not to mine a particular transaction on there block due to low fees or whatever and it just continues to get passed up? Are there transactions that have been in the mempool for weeks, months, or years?

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#2955

  1. The mempool is a list of transactions that have been transmitted to nodes but have not yet been confirmed and appended to the blockchain.

  2. If miners can’t keep up with the rate of the new transactions, the mempool will be congested and people will have to wait longer than usual for their transactions to be confirmed.

  3. If the mempool is congested and people want their transactions to be prioritized by the miners, they will pay higher fees. So fees naturally go up when the network is congested.

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#2956

Very interesting cant wait to learn more about crypto exchanges

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#2957

  1. What is the mempool?
    A node’s mechanism for storing information on unconfirmed transactions. It acts as a sort of waiting room for transactions that have not yet been included in a block.

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The mempool will grow in size and the transactions with high fees have a higher chance to confirmed.

  3. How does a growing mempool effect transaction fees?
    The large mempool size will have the highest transaction fees. The small mempool will have lowest transaction fees. Miners can choose to mine transactions with more fees as first.

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#2958
  1. The mempool are a list of approved requests on an independent ledger that later gets used for approval by a miner by its introduction into a blockchain, Once it has been entered into a completed blockchain then the transaction is complete.
  2. If the miners can’t keep up with the rate of new transactions, then they will only resort to solving those with higher commission fees for them to recieve, in order to be lucrative in their position within the market.
  3. A growing mempool will result in a higher average transaction fee for the given amount in order for a miner to be incentivized to incorporate it within blockchain.
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#2959

If the UTXO is not yet spend you can reuse it with a higher fee, this is good if your tx is stuck due to low fee but can also be dangerous because it can be used to double spend the UTXO. That is why you should wait to make sure the tx confirmed.

They can if one configures a node this way. Bitcoin core has options that start removing transactions that are older than 14 days or start dropping cheap transactions once the mempool reached 300MB. This are the default options though and can be changed.

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#2960

What is the mempool?

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

How does a growing mempool effect transaction fees?

The mempool stores transactions waiting to be validated by miners
To submit a transaction to the miners, nodes have to relay it to each other until it has propagated across the entire network. The mempool is the node’s holding area for all the pending transactions. It is the node’s collection of all the unconfirmed transactions it has already seen enabling it to decide whether or not to relay a new transaction.

Mining fees go up and mempool gets fuller. Lots of transactions that don’t pay enough fee stay in the mempool

A growing mempool effects transaction fees because the miners incentive is a higher transaction fee. If the mempool grows, miners will more likely go for transactions with higher fees first.

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#2961
  1. What is the mempool?
  • A Mempool is a data structure that each node has, every transaction made will pass by a mempool to be verified and send further to the next block.
  1. What happens if the miners can’t keep up with the rate of the new transaction?
  • The miners will choose the transaction with the highest fee in order to keep profitability.
  1. How does a growing mempool effect transaction fees?
  • Growing mempool effect transaction fees by having a higher transaction, in other way the miners pick the transaction from the mempool with highest fee in order to put them in the next block, means the highest transaction fee will be likely chosen in the next block.
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#2962

  1. What is the mempool?
    The mempool is a data structure that every node contains, containing all unconfirmed transactions.

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The mempool will grow larger if the miners cannot keep up with them and this creates a longer transaction time. It seems to be like a binary bottleneck of sorts.

  3. How does a growing mempool affect transaction fees?
    An enlarging mempool can increase the transaction fees because miners are incentivized by higher fees to ultimately get the transactions picked first off the block.

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#2963
  1. What is the mempool?
    Mempool is the waiting area for Bitcoin transactions, that each node maintains for itself. After a transaction i sverified by a node it waits insde the mempool until it is picked up by a miner.and is inserted into a block
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    Once the mempool reaches full capacity, prioritizing of the transactions by the nodes begins by setting up a minimal fee threshold
  3. How does a growing mempool effect transaction fees?
    Transactions with a fee-rate lower than the threshold are immediately removed from the Mempool and only new transactions with a large enough fee are allowed access to the Mempool.
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#2964
  • What is the mempool?
    A list of unconfirmed transactions
  • What happens if the miners can’t keep up with the rate of the new transaction?
    It backlogs.
  • How does a growing mempool effect transaction fees?
    The fees go up
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#2965

The mempool is the place that transactions go to be selected for a block.

Higher sat/byte transactions will be prioritized to be placed into a block before lower sat/byte and the mempool will grow with pending transactions.

Higher sat/byte transactions will be prioritized and transaction prices will inflate.
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#2966

Homework 1/19/21 Mempool

  1. What is the mempool?
    Mempool is basically a place to temporarily store and record unconfirmed transactions prior to block assignment.
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The mempool gets overly crowded with transactions and therefore the confirmation time could be extended and the mempool grows.
  3. How does a growing mempool effect transaction fees?
    Fees increase, confirmation times increase, miners start looking for the best returns via fees in which they may select transactions with higher fees per byte
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#2967

Thank you for the help

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#2968

Homework on Mempool - Questions

1. What is the mempool?
The mempool is basically the node’s holding area for all the pending transactions.

2. What happens if the miners can’t keep up with the rate of the new transaction?
If miners can’t keep up with the rate of the new transaction there will be a ‘traffic jam’ and the mempool will grow.

3. How does a growing mempool effect transaction fees?
Once the mempool reaches full capacity, the node starts prioritizing transactions by setting up a minimal transaction fee treshold. Transactions with a fee rate lower than the treshold are immediately removed from the mempool. Only transactions with high enough fee rate can now enter the mempool.

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#2969

The mempool contains transactions that are submitted to the blockchain and awaiting verification by miners. The higher transaction fee that you include in transactions, the faster they will be confirmed out of the mempool and added to the blockchain.

Mempool grows in size and fees will increase.

The bigger the mempool, the higher the fees. The miners will confirm the transactions with the highest-paid fees first.

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