Homework on Mempool - Questions

Blockchain and Bitcoin 101
#1527

  1. The mempool is a waiting place for new transactions to get confirmed by the network

  2. Although miners can reject transactions with lower fees and thus dump some of those transactions, if too many transactions are in the mempool, it will slow down the network.

  3. A growing mempool will slow down the network and increase fees as it takes more disk space and time to verify transactions.

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#1528
  1. where all unconfirmed transactions are stored
  2. the mempool keeps keeps growing and causes long transaction wait times
  3. the transaction with higher fees are stored the blocks first
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#1529
  1. mempool is the reservoir where every transaction is put before it is processed.
  2. transactions will start to queue and take longer to be processed.
  3. everytime a blockchain is buit the transactions to process are ordered by transaction fees, so, if the rate of new transactions are too high, only the more “generous” transactions ares processed, so, the average transaction fee value increases.
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#1530

What is the mempool?
A. A data structure held by each Node and Miners that contain all unconfirmed transactions.

What happens if the miners can’t keep up with the rate of the new transaction?
A. Mempool size will probably increase causing transaction times to be slower.

How does a growing mempool effect transaction fees?
A. Prioritizing takes place and the transactions with higher fee’s will get chosen first.

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#1531

Mempool is a data structure in memory (RAM). A growing mempool therefore doesn’t really influence the speed much in this sense. It does slow down transactions that have lower fee since they will not be handled with high priority and will be stuck in the mempool until high fee transactions are handled first :slight_smile:

#1532
  1. What is the mempool?
    A mempool is a list of unconfirmed transactions that nodes have. Some mempools are different based on whether or not that node has received those unconfirmed transactions or not.
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    When miners can’t keep up with transactions, the mempool grows in size and it will take longer to unconfirm transactions.
  3. How does a growing mempool effect transaction fees?
    As the mempool grows, the fees will increase. The miners are in competition with each other to bring transactions to the next block, and miners will pick larger fees first.
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#1533
  1. What is the mempool?
  2. What happens if the miners can’t keep up with the rate of the new transaction?
  3. How does a growing mempool effect transaction fees?

Answers:-

  1. Mempool is a storage with all the unconfirmed transactions before the miner picks it up and process it.

  2. Mempool will grow larger and a longer processing time of transaction will be needed.

  3. The fee increases with a competition of a higher fee offered will result a quicker transaction to be confirmed.

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#1534

1. What is the mempool?
a waitingroom of all UTXO for beeing picked by miners to be added in the next block. miners take UTXOs with the highest fees first. if you want to get a very quick confirmation you would need to pay higher fees.
2. What happens if the miners can’t keep up with the rate of the new transaction?
next blocks will become bigger and fees will go up.
3. How does a growing mempool effect transaction fees?
the more bytes are added to a block the higher the fees. fees are calculated by satoshi/byte

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#1535

Its a waiting room for transactions :slight_smile: UTXOs are part of transaction data :slight_smile:

Blocks are limited to 1MB :slight_smile: what would happen if there are more than 1MB of worth txs in the mempool?

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#1536

1.- mempool is a list that represent satoshies per bite per TX
2.- each block has a limited space available, if a new tx does not fit, it will be bumped to the next block
3.- miners get their fees from a more large space transaction, thus a miner will prefer to work with more expensive transactions to pun in the current block

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#1537

  1. The mempool is a data structure that houses the unconfirmed transactions on each node in the bitcoin network.

  2. This question is a bit confusing based on the video… I’m assuming if the miners can’t keep up with the transactions (which I don’t think is a realistic situation) occurring that it’s a good situation for the miner. The miner is then able to choose the highest priced transaction fees of bitcoin flowing through the network and add those transactions to the block. Although with the incentive to make money that comes along with mining; I can’t see the bitcoin miners falling behind in confirming transactions.

  3. A growing mempool effects transaction fees in the sense that if more transactions are occurring on the network, then increasing one’s transaction fee price would aid in moving the bitcoin through the network faster. Considering this, a growing mempool most likely increases transaction fees on the bitcoin network. Please correct me if I’m wrong.

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#1538

Homework on role of wallets - Question July 18th 2020

  1. What is the mempool?

The mempool is a list of uncofirmed Bitcoin Transactions.

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

The new transactions will remain unconfirmed in the mempool until the miner confirms the transaction.

  1. How does a growing mempool effect the transaction fee?

If the mempool increase, causing the miner fees to go up.

-Hector A. Martinez

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#1539
  1. The mempool acts as a storage for mostly unconfirmed transactions they stay on the mempool until a miner takes them and puts them into a block.
  2. If the miners cannot keep up the mempool increases in size and the process will take more time especially if the fee is small. This would result in the fees getting higher.
  3. Because miners will go for the top fees the lower fees will get left behind causing the fee to increase.
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#1540
  1. What is the mempool?

It is the collection of unconfirmed TX

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

They prioritize the TX with the highest fees, so the unconfirmed TX in the mempool will increase in numbers. This causes some TX to take longer to be confirmed.

  1. How does a growing mempool effect transaction fees?

The fee is likely to increase.

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#1541

really? i thought UTXO are transactions…

#1542

the right answer then to 2. is that the transaction speed becomes slower, no? if there are more than 1MB? then simply up into the next block, no? are there any blocks with less than 1MB? i assume they will be packed to the maximum. PS: thanks a lot for your replies, very much appreciated!

#1543
  1. What is the mempool?

The mempool is a data structure that holds all unconfirmed TX that have been validated by the nodes. The unconfirmed TX will stay in the mempool until it is added to a block by a miner

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

The mempool will increase in size and the transaction times increase.

  1. How does a growing mempool effect transaction fees?

Transaction fees go up as the mempool increases as participants will pay higher fees to get their TX prioritised by the miners.

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#1544

Q1. What is the mempool?
Mempool is a node’s memory pool to store unconfirmed verified transactions before being picked by a miner for inclusion in a block.
The node’s mempool is cleared once the unconfirmed transations are added to the block.

Q2. What happens if the miners can’t keep up with the rate of the new transaction?
To keep up with the rates of new transations, the miners setup a threshold for transation fee to prioritise the unconfirmed transations for adding to a block. Unconfirmed transactions with higher transaction fee than threshold are picked while those with lower transacton fee are discarded from mempool.

Q3. How does a growing mempool effect transaction fees?
A growing mempool means higher congestion in the network resulting in higher transation fees.

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#1545

Its not the problem with miners. I’m sure they would gladly cram all txs in one block if they could. But the block size is limited to 1MB :slight_smile:

The block size limit is also the reason why tx fees go up when there is a lot of txs in the network. Everyone wants to have their rx to be mined in the next block or as soon as possible. :wink:

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#1546

No, UTXOs are so called Unspent TX (transaction) Outputs. One can have many of these in one transaction, especially if you want to pay a large sum to someone and only have a bunch of small UTXOs, they will get combined into one transaction. :slight_smile:

If the mempool is mostly empty or even doesn’t have any transactions in it the blocks will still get mined with the 10 min interval. And you are right, if there is to much txs in the mempool, then some will have to wait for to get included in the next block :slight_smile:

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