Homework on Mempool - Questions

Blockchain and Bitcoin 101
#1928
  1. A group of unconfirmed transactions waiting for a miner to confirm and add to the blockchain.
  2. The mempool will grow in size and a miner will likely not be able to add transactions to the chain and get paid. Users will have to wait longer for their transactions to be confirmed.
  3. Miners will prioritize their processing based on the transaction fees paid, so if you want your transaction processed you will have to pay a higher fee to get it done in the future.
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#1929
  1. Mechanism for storing unconfirmed transactions.
  2. It’s not good for the blockchain world because the mempool data grows and this growth of unconfirmed transactions will drive up the fee cost.
  3. Fees increase. Miners are driven by monetary gain and will post a higher fee transaction to the blockchain versu sa lower fee transaction. To reduce the unconfirmed transactions in the mempool, driving the fee price will get miners attention.
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#1930

The Mempool is the Nodes ledger of all unconfirmed transactions , that make sense & have followed correct protocol that each node records.

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

The mempool gets larger because the transactions haven’t been written on the blockchain so cannot be removed from the mempool.

  1. How does a growing mempool effect transaction fees?
    The miners will want to put as many higher fee transactions as possible into one block so others with a lower mining fee will wait longer to be recorded on the chain.
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#1931

1.mempool is a list of unconfirmed transactions on the network.
2. it will slow the network down.
3. growing mempool effect transaction fees by raising the fees because the miners are incentivized to put the hi fee transactions to there block.

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#1932
  1. What is the mempool?
    list of all transactions.
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    mempool backlog builds
  3. How does a growing mempool effect transaction fees?
    transaction fees go up!
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#1933
  1. The mempool is where unconfirmed transactions are stored on the node until they are mined, confirmed and appended to the blockchain.
  2. The new transaction not yet picked up and processed and confirmed by a miner will continue to be stored in the mempool. Those transactions remaining in the mempool are noted on a graph by fees based on satoshi per byte at a mempool status website such as “Joehoe”. New transactions may remain in the mempool longer due to having low fees as miners are financially incentivized to process higher-fee transactions. More complex, i.e., more byte-heavy transactions, usually due to more inputs and outputs, necessitate a higher fee as they take up more space on the block the miner builds and there is limited space per block. Large dollar amounts do not necessitate larger fees, instead larger transactions are considered those that require more time and electricity to process and that is the size indicator in this context.
  3. The growing mempool makes for more transactions competing for processing and thus cause the fees per transaction to increase as miners look to make money and choose transactions with higher fees built into them.
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#1934

Larger transactions in Bitcoin are those that require more space to store (due to them being more complex or are just larger because they use more inputs and outputs). The processing of these transactions is not an issue and doesn’t cost more.
This is the case on Ethereum, where you pay gas to execute the code as well :slight_smile:

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#1935

Since there is more complexity I’m thinking it is more expensive to process, anything that is larger to make requires more effort, like building larger square footage on a house, for example.

Yes, I do recall reading somewhere about gas and Ethereum, separately I saw something to the effect that Ethereum as a coin is used as payment to build Ethereum software/infrastructure, I’m thinking that is actually the gas paid.

#1936
  1. the repository of submitted transactions that have not yet been takes and confirmed by miners
  2. mempool grows in size and transaction confirmation time gets longer
  3. fees go UP as a result since only so many transactions can be included in a block and so fees rise of compete for block space
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#1937

  1. Mempool is the database structure of all the unconformed transaction. Before miner puts the transaction in the block the transaction is unconformed and it is saved in the mempool

  2. The mempool will grow in size

  3. As the competition rules and Free market rules. the increase in demand wil increase the price (fee).

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#1938
  1. a storage of all unconfirmed TX
  2. mempool grows - this will result in longer TX times
  3. fee will go up as TX with higher fee are prefered
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#1939
  1. Mempool is a node’s database of unconfirmed transactions that is waiting for a miner to pick them and confirm them
  2. Mempool gets bigger and miners will prioritise transactions with higher fees
  3. A growing mempool will push transaction fees higher.
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#1940
  • What is the mempool?

= The mempool cinsists of all unconfirmed transactions that have not been put into a block.

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

= The Mempool grows and transaction fees may increase.

  • How does a growing mempool effect transaction fees?

= The bigger the mempool gets, the higher the fees, the miners will prioritise the transactions with the highest fee.

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#1941

Mempool is a data structures that each node has. It contains majority of unconfirmed TXs.

If the miners can’t keep up with the rate of the new TXs, the waiting time for TX will increase and fees will go up. Nevertheless your low fee TX will eventually go through.

If mempool increases the miners have luxury to pick up higher paying TXs, and you need to pay more if you want your TX to be processed faster.

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#1942
  1. What is the mempool?

A mempool is the datastructure from a node where unconfirmed transactions are stored.

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

The mempool will grow and the fee of every transaction can go up as miners will choose the mempool with the largest fees.

  1. How does a growing mempool effect transaction fees?

If a mempool grows in bitesize there is more space being taken and that means the transaction fees will go up as fees are paid in satoshi per bitesize and not per bitcoin.

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#1943

What is the mempool?

The mempool is a place where unconfirmed transactions wait for a miner to pick them up to add to the next block.

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

If the miners can’t keep up with the rate then the mempool grows larger and there are longer transaction times.

How does a growing mempool effect transaction fees?

A growing mempool will cause transaction fees to increase because of the
competition to complete the transaction to get to the next block. Larger fees incentivize miners to get the transaction picked first.

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#1944

The mempool is where unconfirmed transactions go.

The mempool will grow in size

Miners will take transactions with larger fees first, so a larger mempool equals more unconfirmed transactions and That means I’m order for your transaction to be picked up by a miner quicker it needs to have a larger transaction fee.

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#1945

Homework on Mempool - Answers

  1. The mempool is a data structure that holds unconfirmed transactions that each node has.

  2. If miners can’t keep up with the rate of the new transaction the size of the mempool increases.

  3. A growing mempool effects transaction fees by way of the size of transactions compared to the room available per block. If the block doesn’t have enough room for a large transaction miners will have to take transactions with smaller fees, but if there is room to handle transactions of larger bit sizes then miners will take the transactions with higher fees first.

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#1946
  1. What is the mempool?
    -The mempool is a list of all unconfirmed transactions and their associated fees. Each node has its own mempool.
  2. What happens if the miners can’t keep up with the rate of the new transaction?
    -The miners will always prioritize transactions with higher fees, or more accurately, higher Satoshis per byte.
  3. How does a growing mempool effect transaction fees?
    -It should put pressure on fees to increase as people don’t want to wait a long time for a transaction to be confirmed and added to the blockchain.
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#1947

Actually miners pick transactions with the highest sat/byte ratio. That way a miner can select the most profitable transactions that can fit in a block. If there is a small transaction with low sat/b ratio and a large transaction with bigger sat/b ratio, the miner will prefer the larger transaction. :slight_smile:

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