Homework on Mempool - Questions

Blockchain and Bitcoin 101
#4172

  1. The mempool is a staging area that is stored on nodes for new transactuins that are waiting to be put into a block by a miner.

  2. If miners cannot keep up, they will prioritize transactions with the highest fees.

  3. The larger the mempool is, the longer some folks need to wait and the higher the fees will become to.

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#4173
  1. A registry of all unconfirmed transactions
  2. The registry of unconfirmed transactions (mempool) will continue to grow
  3. The fees will increas
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#4174

1.Mempool storages the unconfirmed transactions.

2.Files up with pending transaction and fees can also increase.

3.It increases the transaction fees.

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#4175
  1. The mempool is stored on each node with the list of unconfirmed transactions until a miner confirms and adds the transaction on a block.
  2. The mempool will grow in size and the time of confirmation would grow as well, since the node prioritized higher fees.
  3. A growing mempool increases transaction fees because miners are incentivized to choose transactions that offer the highest fee in return for appending the transaction onto the blockchain. Miners can neglect lower fees until they have mined through the higher bids.
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#4176

  1. What is the mempool?
    The mempool is the listed of submitted but unconfirmed transactions. Some nodes already ‘see’ this valid transaction, but it has not propagated throughout the blockchain database.

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    First a larger mempool and then:
    Higher gas fees :frowning: and preference from the miners towards txns that are higher in value but lower in size (Satoshi / b)

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

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#4177
  1. each mode had a list of unconfirmed tx’s.
  2. mempool grows, thus longer time for tx to get confirmed
  3. tx fee pumps up
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#4178
  1. What is the mempool?

A mempool (a contraction of memory and pool) is a cryptocurrency 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.

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

The number of unconfirmed transactions will increase in the mempool. And the mempool will get bigger and it priorities transaction with higher fees.

  1. How does a growing mempool effect transaction fees?

If the mempool is full, the fee market may turn into a competition: users will compete to get their transactions into the next block by including higher and higher fees. For this reason, miners prefer to include smaller transactions. A larger transaction will require a larger fee to be included in the next block. Miners always comes first because they are the people who validate the transactions.

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#4179

  1. Data structure kept by nodes in which are the verified transactions waiting to be confirmed (put on th BC by miners)

  2. The mempool is growing and transaction time maybe longer and the fees might increase.

  3. Fees are likely to increase for a Tx to be add to the BC faster.

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#4180

  1. What is the mempool?
    The mempool lives on the nodes and involves a list of new and unconfirmed transactions received from wallets. Miners will then process them from there to add them to the next block in the blockchain.

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The mempool with grow and take longer to get processed which will then slow down the over all network performance increasing transaction times to complete.

  3. How does a growing mempool affect transaction fees?
    They will increase because of basic economic demand and supply principles. There is more competition there is for transaction processing the more participants will be prepared to pay for processing the transactions faster and at a higher priority. Miner will select the transaction with the higher fees first to put them on the blockchain.

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#4181

  1. The mempool is memory space on nodes that contain unconfirmed transactions which have been broadcasted to the node. Once a miner mints a new block with some or all of these unconfirmed transactions then they become confirmed transactions that have been added to the blockchain and are removed from the mempool.

  2. If the miners cannot keep up then the transactions with the highest Sat/Byte then they remain in the mempool until they are added to a new block.

  3. A growing mempool increases transaction fees by forcing senders to pay higher fees to the miners so they can get considered for a new block faster.

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#4182

Rundown, everything being equal.

Mempool overabundance constructs

Exchange charges go up!

#4183

1.Mempool holds unconfirmed TX waiting to be mined.

  1. Fills up with TX which in return can increase fees.

3.Creates longer wait times unless your willing to pay a higher fee to incentivize miners to confirm your transaction faster.

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#4184
  1. A list of unconfirmed transactions
  2. Mempool list gets bigger, more demand for miners
  3. Transaction fees increase in competition to have transaction confirmed within the next block
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#4185

I’m not sure what you mean by that.

A growing mempool will not effect prices on exchanges. It will increase fees and wait times on chain. :slight_smile:

#4186
  1. A mempool is a pool of unconfirmed transactions.
  2. The mempool gets bigger and transaction fees increase.
  3. The fees will go up because people will want their transactions to go through faster.
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#4187

  1. Mempool is a all the transactions verified by the nodes, yet to be confirmed and added to the blockchain by minors

  2. The size of the Mempool with increase in volume and the time it takes to add transactions to the blockchain may also increase.

  3. A larger mempool with increase transaction fees. As minors are incentivized to select transactionsa with higher fees.

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#4188
  1. The mempool is like purgatory for transactions while they wait to be mined and added to the blockchain.

2 If the miners can’t keep up with the rate of new transactions then the memory gets bigger and transaction fees will generally increase since the miners need bigger incentives to choose certain transactions over others.

  1. Transaction fees increase when the mempool gets bigger.
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#4189

Homework on Mempool - Notes & Answers

NOTES:

  • The mempool is a data structure that each node has that stores all of the unconfirmed transactions in a list
  • Mempool contains all unconfirmed transactions that make “sense” to the node (i.e. the transaction does not break any rules like sending more than the account balance)
  • Since information does not travel instantaneously then different nodes might have slightly different mempools. However with time all mempools will look the same
  • Miners will query the mempool of other nodes or their own mempool (remember that miners are also nodes and thus they also have copies of the blockchain and mempools) --> then they choose the transactions in the mempool with the highest fee
  • In bitcoin you pay per Byte, sats/Byte (not per Bitcoin or sat that you transact)
  • More simple transactions are smaller in bytes and thus cheaper
  • Every block has a limited size and thus miners want to pack in as many transactions as possible. The mor bytes you transaction has the less room the miner has on the block for other transactions and thus you need to pay more since you are “taking up more room” in that block
  • In Bitcoin the miner does not care how MUCH MONEY you transact but rather how MUCH SPACE IN BYTES you transaction takes up in their block

1) Q: What is the mempool?
A: Data structure that each node has that stores unconfirmed transactions

2) Q: What happens if the miners can’t keep up with the rate of the new transactions?
A: They will choose the transactions with the highest fees

3) Q: How does a growing mempool effect transaction fees
A: The larger the mempool --> the more unconfirmed transactions --> the more difficult it is to get a transaction confirmed --> thus the higher gas fees each user must pay to have their transaction go through

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#4190

  1. The mempool is where transactions wait to be picked up by miners

  2. Transactions are prioritized by fee

  3. The fee threshhold increases

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#4191

1.Pool of uncorfirmed transactions.
2.Confirmation will be slover and the mempool will be increasing.
3.The trasactions fees will be increasing.

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