Homework on Mempool - Questions

[serge]

Mempool

1. Mempool is a data structure in a node that lists unconfirmed transactions until they are picked up by a miner.
2. The mempool grows in volume, transactions take longer to get confirmed.
3. Transaction fees increase, transactions with higher fees are picked up first due to the financial incentive for the miners, whereas transactions with lower fees take longer to get into the block.

[Mauro]

No worries Anna. Sry for the late reply. (Forums are going wild, hard to keep up.) I hope your knowledge has improved since last time. If you ever feel stuck or need help feel free to message me back. I am here to help you learn how it all works.

[Mauro]

No problem Brett. Yes I work for the academy. My job is to help you learn everything correctly. I will try to assist you in your journey. (I am sorry for the late reply, the forums have been going to fast for me.)

[Mauro]

@umeshusoda

The smaller transactions (in byte) might get added first unless you pay higher fees for being added.

For this very reason we use a unit of measurement called “satoshi per byte”. Here is a great website to look at: https://bitcoinfees.earn.com/

It shows you the amount of transaction based per byte.

[Mauro]

@JohnnyN

Transactions with a fee lower than the threshold is removed.

They aren’t removed. They will just not be added in the next block. They will have to wait until the rate of new transactions slow down in order to be accepted.

[Mauro]

@JohnnyN

When the mempool reaches full capacity the nodes start prioritizing by setting up transaction fee threshold and transactions with a fee-rate lower than threshold is removed.

A mempool size can be set very large in the nodes, sometimes even without a size limit. But as soon as the mempool is larget than 1mb a miner will prioritize the transaction. This is because the block size limit in bitcoin is 1mb.

[Mauro]

@GoHackYourself9

1. Mempool is a temporary buffer of transactions submitted from the nodes and proposed to the miners from which they can choose to build new blocks to the blockchain thus confirming the transactions.

There is no predetermined location for the mempool. Each miners/node has their own version of the mempool.

[Mauro]

@Ed1

It can take a little bit longer that it will be confirmed in the blockchain (because it is getting less priority by the miners). If you would like to have a faster confirmation you need to pay a higher fee.

Yes. What about the first question? What exactly is the mempool?

[Mauro]

@Yir

3. How does a growing mempool effect transaction fees?
   The mempool may chose the higher transaction fee to confirm orders.

A miner will choose the higher fee transaction. The mempool cannot choose. I assume you made a typing mistake here.

[Mauro]

@odesseus011

3. How does a growing mempool effect transaction fees?
   Transaction fees will increase as miners can choose to process transactions with higher fees. This will create a higher fee structure.

It will create a higher average fee, but not because of the miners but because of the demand the users put. Users compete to get theitr transaction confirmed first.

[Mauro]

@rontrader9

1. What is the mempool?

Bitcoin transactions that have been signed and awaiting confirmation

A mempool is a place for unconfirmed transactions. Each miner/node has one.

[Mauro]

Great answers.

[Mauro]

@natanieldp

1. Place to store the unconfirmed trx. Later the miner will put it in the block.
2. Mempool will full.

1. Mempool is not a one single place. Each miner has their own version of the mempool.
2. Mempool size depends on the miner itself. They can set a maximum size to what they wish.

[Yir]

Thank you Mauro ! : I am learning everyday .

[Ed1]

Mempool is the temporary place to store transactions on the node (unconfirmed transactions for every miner) Thanks Mauro

[vezuchiy]

1. Mempool is a list of unconfirmed transactions.
2. If miners can’t keep up with the rate then mempool grows larger and there are longer transaction times.
3. A groowing mempool will push transaction fees higher .

[Mauro]

No problem. Keep up great work.

[Mauro]

That’s it. No problem Edgar. Glad I could help you.

[Mauro]

@claritacoin

3. Because miners are wants to make money, they will go for the transactions that has the highest fees. Making the fees go up!

The fees don’t go up because of the miners. The fees go up because users are competing with each other. When there is too many transactions, people will start to pay more in order for their transaction to be confirmed sooner.

[Mauro]

@coffy

2. The other transactions will wait

Which transactions will need to wait?