Homework on Mempool - Questions

Blockchain and Bitcoin 101
#4212

A1. 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. The mempool serves as the main gatekeeper for submitting transactions to the network for inclusion in a block, which makes it one of the main way all types of users interest with Bitcoin, and drives the urgency of completing this security critical work in a manner that respects the myriad of currently supported uses.

A2. If the miners can’t keep up with the rate of the new txs, mempool congestion takes place. It means that there will be many unconfirmed Bitcoin txs waiting to be confirmed to the blockchain by miners. It would cause scaling problem in the Bitcoin network. Mempool congestion can be caused by two things:

  • Transaction volume is high: This means the number of transactions waiting to be confirmed on the blockchain is high, and the volume of confirmations needed can’t be processed fast enough. This can be likened to when doctors are overwhelmed by the number of patients that are in the waiting room.

  • Trade hash decreased abruptly: When the trade hash decreases abruptly, it means that there are not enough miners to confirm each transaction. This is similar to when there are not enough doctors to see waiting patients. Because of this the patients or in this case, the Bitcoin confirmations must wait longer.

A3. Then, miners will choose the txs with the highest fees to process to the Bitcoin Network for inclusion in a block. It would lead to effect higher tx costs in the network.

https://99bitcoins.com/bitcoin/mempool/

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#4213

1. What is the mempool?
A mempool is a space where all the pending transactions and fees are stored.

2. What happens if the miners can’t keep up with the rate of the new transaction?
They pick up the most profitable transaction and later do the rest.

3. How does a growing mempool effect transaction fees?
Miners choose only the most profitable ones. Once the mempool reaches its size limit it automatically sets a minimum fee threshold. Every transaction which fee is under the threshold will be removed.

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#4214

  1. The mempool is the broadcasted transactions that are yet to be put into a block by a miner. Some could consider these ‘unconfirmed transactions’ as they don’t exist on the blockchain, even if they have been approved by nodes to be true. Once a miner places a transaction into a block, it is removed from the mempool.

  2. A miner must maintain a block to a certain size. They can fill the block with any number amount of transactions, so long as the aggregate transactions don’t exceed the block size. As miners are monetarily incentivised to select append blocks with the highest reward, they will optimise what they fill the block with to contain the highest fees/byte. The end result of miners being unable to keep up with rate of new transaction is higher fees, as only the transactions with the higher fees will be selected to be placed into new blocks.

  3. Given that miners will optimise their block for fees per byte, a wallet that wants to have their transaction confirmed is competing with other unconfirmed transactions in the mempool. So when there is competition in the mempool, fees will increase for miners to select their transactions to be appended to the blockchain.

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#4215

  • What is the mempool?
    It’s where unconfirmed transactions are stored.

  • What happens if the miners can’t keep up with the rate of the new transaction?
    The storage size in the Mempool increases & a transaction may take longer to complete.

  • How does a growing mempool effect transaction fees?
    The transactions offering the highest fees get taken first.

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#4216

Homework on Mempool - Questions

  1. What is the mempool?
    A mempool refers to a sort of list that each node has of waiting unconfirmed transactions.

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The collective mempool size will keep growing, this will result in transactions taking longer and longer to confirm.

  3. How does a growing mempool effect transaction fees?
    Miners are insentivised to write transactions with the highest fees to the block first. Fees will become higher and higher due to a growing mempool as people will be bidding higher fees to have their transactions validated first.

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#4217
  1. Mempool is a data structure that each node has to store unconfirmed transactions.
  2. They go to the mempool and take the transactions with the highest fees.
  3. A growing mempool can cause increased transaction fees.
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#4218

  1. What is the mempool?
    –> transactions that haven’t yet been picked up by the miner and that are not yet processed into the blockchain. Pending transactions.

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    –> they will prioritize those with higher sat/byte transactions

  3. How does a growing mempool effect transaction fees?
    those willing to spend less satoshis per byte will be pushed back

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#4219

  1. What is the mempool?
    Its a log of all the unconfirmed transactions

  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The TX goes into the mempool and the transaction time gets longer.

  3. How does a growing mempool effect transaction fees?
    Transaction fees get more expensive, because the miners choose highers offered fees to validate the transaction

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#4220
  1. The mempool is a place that stores unconfirmed transactions.
  2. Then the mempool will become bigger, at a higher rate than the confirmed transactions.
  3. The fee with go up.
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#4221

list of all the tx that have happend but which still need to be confirmed (put in blocks - mined)

the mempool grows, confirmation of the transaction/ being put into blocks will take more time; will become longer

The transaction fees will increase
each miner has an incentive and the higher the fee, the quicker your the transaction will be put in a block.

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#4222
  1. What is the mempool?
    ans-it is a database on the node where unconfirmed transactions are stored until they are picked up by miners to be added to the blockchain.
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    ans-the mempool will have a larger unconfirmed transaction which will take longer time to be processed, fees may go up and nodes will run out of space with their storage.
  3. How does a growing mempool effect transaction fees?
    ans-it will definitely hike up the transaction fee.
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#4223

1.The mempool is a storage area for unconfirmed transactions.
2. The mempool will grow has the network gets busy.
3. Miners will choose the transaction that offers the highest fee.

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#4224

Mempools are located in nodes and are temporary databases of unconfirmed transactions.

The transactions are kept in mempools and higher fee transactions are prioritised.

A growing mempool increases transaction fees.

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#4225
  1. Miners pick the TX of the mempool with the highest fees - the mempool stores the UTXO until it gets written onto the Blockchain.
  2. A new block will be considered for transaction!?
  3. highest bit wins
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#4226

What do you mean by a new block will be considered for a transaction?

#4227

good point. I guess it wouldnt matter anymore, since the TX won’t get considered and therefore the block not accepted by the minders.

that is my understanding. what do you think?

#4228
  1. What is the mempool?

List of unconfirmed transactions. Need miner to add to the next block

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

The mempool can fill up with pending transactions, fees could increase

  1. How does a growing mempool effect transaction fees?

Raises transaction fees. Transactions with higher fees will be added first.

2 Likes
#4229

Sorry, I still don’t understand your answer. The Answer is the mempool will be congested, because of all the transactions that want to get confirmed, this will lead transaction fees to rise and slows confirmation times.

#4230

read Zizou8’s answer - makes more sense than my precious one. best

#4231

What is the Mempool?
Where unconfirmed transactions are waiting to be picked up by a miner.

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

How does a growing mempool effect transaction fees?
Fees increase.

1 Like