Homework on Mempool - Questions

Blockchain and Bitcoin 101
#1307

Hi there! Actually, is not that miners are loosing the fee, as they are always selecting the the transactions with higher fees. So, if there are 200 transactions waiting in the mempool, and for example, you can only fit 10-20 in a block every 10 min, then the mempool will grow, as more transactions will keep coming.

Does this makes sense?

Felipe.

#1308
  1. Mempool keeps track of all unconfirmed transactions left for the miners to pack into a block
  2. If miners cant keep up then the network gets backed up and users will have to pay higher fees to keep their transactions from being passed over by new transactions that pay higher fees
  3. growing mempool causes higher transaction fees since miners will wrap the transactions with the highest fees into the next block
1 Like
#1309

  1. The mempool is like a waiting room. All transactions that are not confirmed waits for the miner to pick them up to be integrated to the blockchain.

  2. The transaction is left in the mempool until the fee rate makes sense to the miners. In other words, until the rate is profitable to them.

  3. it’s a fee market, if the mempool is growing it means that there is more demand for transactions so those transactions which pays higher fee rates will be chosen first to be integrated in the blockchain, that’s why it will increase the price of the fee

1 Like
#1310

Each miner has their own mempool. :smiley:

#1311

Homework on Mempool - Questions

  1. What is the mempool?

The Mempool is a list of all pending transactions that have been broadcasted, validated and distributed on the network, but not yet confirmed in a block. Each node puts pending transactions in their own version of the mempool, as it is distributed. This means each node can temporarily have different versions of the mempool.

A miner can check it’s own mempool (since it is also a node), and/or ask other nodes to see their mempool, to be able to create a block.

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

The mempool grows bigger over time, if the amount of pending transactions grows quicker than what the miners are able to include in their blocks every ten minutes.

  1. How does a growing mempool effect transaction fees?

A miner will always choose to include the transactions with the highest fees first, when they create a block. Fees are denominated in sats/B. B is the size of the data that is in the transaction. This means that a transaction that is constructed in a more effective way, will be cheaper to confirm, than one that is less data size effective.

This is because a block has a limited size, and the miners have an incentive to make money. If the mempool grows, the fee to include a transaction in a block goes up too.

1 Like
#1312

The mempool is the place within each node where unconfirmed transactions are held after validation by the node, and before confirmation and placement within a block.

If the miners can not keep up with the rate of transaction, they select the transactions that generate the highest fees with the smallest bytes to place within the block. This strategy generates the greatest incentive for the miner.

A growing mempool affects transaction fees in that it determines the speed in which a transaction is confirmed and placed in the block. A transaction with a higher fee will be prioritized by a miner.

1 Like
#1313

1 the mempool is a stasis / waiting area where transactions wait to be added to block chain by miners as transactions are added to block chain by miners they are erased from the mempool and others are added so there is constant flux
2 if the miners cannot keep up with the transactions the mempool would get bigger and i am guessing the fees would go up as people would want their transactions to go through therefore people would go to higher fee platforms
3 the growing mempool would increase transaction fees as more platforms would want their transactions to go through so would increase fees in hopes the miners will pick them …i.e. fees would competitively increase till a middle ground of fees and time evened out

1 Like
#1314
  1. Mempool: all not yet confirmed TXs (not yet put into a block by the miner)
  2. TXs take longer (suppose “rate” means here how many TXs are waiting to be confirmed, but are still in the Mempool, kind of “high-traffic-times”, is it?)
  3. miners will pick first the TXs with the highest fees to earn, low-fee transactions might take longer.
    (do not fully get this point: low-fee TX consist of less byte, therefore from technical perspective should be even processed faster …does this mean the miner´s fees are actually slowing down the entire BC ?)
#1315

Thank you for the explanation. Yes it makes sense.

fred

2 Likes
#1316

Yes, that is correct :slight_smile:

The fee is determined by sat/byte so a larger tx (with for example more inputs) would also require a larger fee overall. That doesn’t mean miners slow down the network, the speed of generating new blocks is determined by the difficulty so a new block gets mined approximately every 10 minutes :slight_smile:

1 Like
#1317
  1. A Mempool is a list of unconfirmed transactions. Each full node has a mempool.
  2. Mempool grows. They will prioritize the TX with the highest fees.
  3. More TX --> bigger Mempools --> higher fees.
1 Like
#1318
  1. A mempool stores al inconfirmed transactions, waiting to be picked ans confirmed by miner, putting it into the blockchain.
  2. The mempool is increasing
  3. The fees will be increased, because highest fees will be prioritized by miners.
1 Like
#1319

Who are those mysterious people? :wink:

1 Like
#1320

1- What is the mempool?
It is a location with in a wallet or mining node containing all UTXOs awaiting placement for processing in the next block.

2- What happens if the miners can’t keep up with the rate of new transactions?
Those transactions are placed in the mempool until they can catch up increasing the transaction time.

3-How does a growing mempool effect transaction fees?
a- Transactions with the larger fees are processed first.
b- Lower fee transaction will be processed last or not at all.

1 Like
#1321
  1. The Mempool is the place that holds all unconfirmed transactions
  2. The Mempool increases
  3. The transaction fees increase with a larger mempool because of the competition to get the transaction to the next block. Larger fees are offered to miners to get the transaction picked first.
1 Like
#1322
  1. What is the mempool?
    A mempool is a memory each node have for the unconfirmed TXs.
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    The new TXs are not getting confirmed. But they are still there in the mempool. Those TXs contribute to the growing of the mempool.
  3. How does a growing mempool effect transaction fees?
    Miners tend to choose TXs with higher TX fees. The TX with high fees most propably are getting chosen and the transaction will be faster. With the growing mempool not all TX can be picked by the miners. The users know this and are willing to pay higher fees to get their TX through. The overall TX fees will grow with growing mempool.
1 Like
#1323

  1. Mempool is a place where all unconfirmed transactions are stored. Each node has own mempool.

  2. IM NOT SURE WHAT DOES 'keep up with the rate" MEANS. But according to community members mempool will be crowded and transaction confirmation will take longer.

  3. TX fees increase with larger mempool because of the competition. Larger fees are offered to miners.

1 Like
#1324
  1. Mempool: Data structure that each node has. A list of UTXOS that remains aside in each node. When the transaction is broadcasted the node that receive the transaction validate it and locate in a Mempool. It is like a person flying with a Standby ticket. That person will be located in a list (mempool) That doesn’t mean he/she is ready to board the plain. As soon as she/he is confirmed by the airline worker, she/he could board the plain.
  2. Since the miner is financially stimulated, it will take the transaction with the higher fee in order to make more money.(more inputs= more space, more hardware used=higher fee). If the miner can’t fit all the transactions, the transactions left, will be assign to the next block. if you want your transaction to be placed quickly, you need to come up with a higher fee.
  3. Each block has a limited size, so miners can’t fit all the transactions in one block. In fact, they don’t care how much the value of the transaction is but, the space in bites your transaction is going to take. The larger the transaction in size (Bites) the higher the fee is going to be.
1 Like
#1325

What we meant to say is that the miners keep getting more transactions that they can fit in a single block. :slight_smile:

1 Like
#1326

This is true. As a user we pay more if the transaction is larger in size. However, miners still only care about how much fees the transaction is paying. They don’t care about the size of the transaction, as long as it pays well in the satoshi per byte terms it will be confirmed sooner.

1 Like