Homework on Mempool - Questions

[bolyx]

Homework on Mempool - Questions

1. What is the mempool?
   A Mempool is a location on a Node that queues unconfirmed bitcoin transaction waiting for the miner to append into the blockchain

2. What happens if the miners can’t keep up with the rate of the new transaction?
   Miners are working based on incentives and thus always prefer to go for high fee transaction which can makes the low fee transaction to continually increased,delayed to be confirmed and cause lots of back log and increase the size of the mempools or grows larger

3. How does a growing mempool effect transaction fees?This can lead to increase in transaction to make the Mempool attractive to Miners who are interested in high fee transactions.

[Mike_C]

There is a version on each node right? This is where the variation can occur between the nodes, if a transaction hasn’t propagated to all nodes yet?

[Maxivation]

1. A mempool is a list of unconfirmed transactions for a specific node.

2. The mempool grows and they will most likely pick up the transactions with the highest fee’s so they can make a maximum amount of money for their work

3. If the mempool gets fuller and fuller the transaction fee will increase and the confirm process might need longer time

[Alko89]

@mwollike

take more transaction faster.

They will not take more transactions faster, but they would prioritize the ones with higher fee

[Alko89]

@ehammer

and only add transactions with minimum fee threshold.

The mempool doesn’t really have any limit to its size so it would grow indefinitely, there is no minimum threshold to put transactions in the mempool. They can potentially stay there indefinitely or at least until you would create a new tx with a higher fee using the same UTXO, invalidating the tx stuck in the mempool.

[Alko89]

@ludvighatle

highest fees and lowest Sat/B.

Highest Sat/B also means higher fee it means how much you are paying in satoshis per byte

[Alko89]

@Mike_C

There is a version on each node right? This is where the variation can occur between the nodes, if a transaction hasn’t propagated to all nodes yet?

Hmmm, the node version doesn’t really have much to do with that. Transactions are just stored in the memory until they are picked by the miner and stored permanently The reason why some transactions don’t propagate to all nodes is purely based on how far away are the nodes located and how good is their connection.

[ludvighatle]

Ok, so they are correlated . But is it possible to set a higher fee than the minimum manually? If you absolutely want your transaction to be in the next block, then make sure you have low Sat/B and a high fee??

[Alko89]

The fee is basically sat/B so of course they are correlated you can’t have a low sat/byte and high fee. The fee means how much you are willing to pay for sat/B. If you have a large transaction (lots of bytes) and a low fee, it means you will pay less sat/B or a small transaction and a high fee it means you will pay a lot more sat/B.
This is important to the miners since they want to store as much data in a block as possible in 1MB and so they prefer transactions with higher sat/B value. The fee is for the user how much he will pay for the entire transaction.

[pepijnnabbe]

1. A node’s (any node) unconfirmed transactions list
2. The mempool grows
3. it rises

[terrydanaher]

1. the resting place for all unconfirmed transactions. 2.The mempool grows, and transaction time gets longer. 3. fees will rise.

[colgate_fresh]

@ivan

• 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?

1. The mempool is a list of transactions waiting to become confirmed and put into the next block by miners.
2. When miners can’t keep up with the rate of new transactions, they choose the transactions with the highest fee to put into the next block, which means it could take much longer for a transaction to process if it chooses a lower transaction fee.
3. A growing mempool affects transaction fees because miners will choose the most profitable fees. If you want your transaction to go through in a timely fashion, you may need to adjust your fee for your transaction higher.

When creating a “block”, does that mean the winning miner just created a block of new bitcoins, and that’s where the new transactions stored in the mempool eventually go? So if no new bitcoins are being created, transaction can no longer be processed?

[mountainvalue]

1)A mempool is a list of all unconfirmed transaction. Each node and miner have their own mempool
2) The mempool grows .
3)A growing mempool will increase fees

[BobN]

Homework on Mempool - Questions

1. What is the mempool?
   A list of unconfirmed transactions on “each” node

2. What happens if the miners can’t keep up with the rate of the new transaction?
   It takes longer to get transactions confirmed…and mempool size grows

3. How does a growing mempool effect transaction fees?
   Transaction fees will be higher

[jerry_miller]

1. The Mempool is a list with all unconfirmed transactions. When your wallet constructs a transaction, it gets distributed to all the nodes in the network, and they first check the validity of the transaction and thereafter put it in the Mempool. The Mempool is filled with all the valid transactions that wait to get confirmed by the miners and added to the blockchain.
2. If the miners can’t keep up with the rate of the new transaction, then the new transactions get added to the mempool and the mempool grows. The block size is limited (in bytes), so the miners can only fit a limited number of transactions in each block. Therefore, if there is high pressure in transactions, a lot of transactions will be added to the mempool.
3. A growing mempool means that there is higher demand for sending transactions than there are supply from miners to confirm them. Since there is a market for fees (driven by supply and demand), a growing mempool increases the transaction fees.

[ehammer]

My answer came after reading:
“https://99bitcoins.com/bitcoin/mempool/”

An in-depth guide into how the mempool works

But I see now that theoretically there is no limit. But because the mempool is usually stored in RAM, nodes can opt-in to set a minimum fee threshold. Otherwise if the node’s RAM runs out it will crash and you loose the mempool.
https://www.buybitcoinworldwide.com/mempool/

[mark.mosley]

1. The mempool is where unconfirmed transactions reside until they are added to a block

2. When miners can’t keep up with the rate of new transaction creation the size of the mempool grows

3. As the mempool increases miner fees will increase

[Boas]

Homework on Mempool - Questions

1. What is the mempool?

Data structure of each node. Pool of unmined transactions that have been confirmed to make sense by the node in terms of inputs and outputs.

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

The bitcoin network becomes slower resulting in long waiting times for funds to be transferred.

3. How does a growing mempool effect transaction fees?

Fees become higher as the competition to get miners to process a block with your transaction increases.

[Melki]

1-The mempool is where unmined tx. will be listed to eventually be picked up by miners, this list is available to every node.
2- If miners can not keep up with the rate of new tx. the number of successfully mined tx. put on the block chain will slow down.
3- Transaction fees would likely go up since the miners are insensitized by the fees and higher fee mean faster service.

[Mcilvery]

1. The Mempool is the place in each node where new transactions that make sense but have not yet been confirmed by a miner.
2. If the miners cant keep up with the rate of current transactions the Mempool increases.
3. Because the higher fee transactions are mined first the fees will increase as transactions compete for confirmation.