Homework on Bitcoin Ecosystem - Questions

  1. What is the difference between a SPV (simplified payment verification) and a full node?
    An SPV is a sterlite tied to a full node. They therefore do not have the full Blockchain on their system so need to access the data via the fullnode that they are tied to.
  2. What does it mean when a transaction is broadcasted?
    A transaction is broadcasted when it is propagated throughout the blockchain infrastructure, from node to node
  3. How does a miner pick which transactions that gets added to the next block? Miners are motivated by transaction fees and so choose those transactions that offer the highest fee.
  1. a SPV doesn’t have a full copy of the blockchain, due to blockchain size, so a SPV verifies transactions through a full node on the network.
  2. a Transaction is submitted and propagated to the blockchain network to be added and validated.
  3. Most miners pick the transactions with the most fees in the mempool to increase their profits.
  1. A SPV does not have a full copy of the blockchain stored.Instead it depends on a full node for its inquiry of the blockchain.A full node does have a full copy of the blockchain stored.
  2. It means that a transaction is propagated through the network and full nodes put these transaction in there mempool till a miner comes along and put the transaction in a block.
  3. A miner can choose any transaction it wants.So it will most likely choose the transactions with the highest fee.

1- SVP does not store a copy of the blockchain while the full node does
2- the block has been created and abbended to the network
3- by checking the transactions fees from the minpool

1 The SPV doesn’t have the entire copy of a the blockchain it makes queries to a full node.
2 Its distributed through the nodes of the network
3 It will pick the transaction from the mempool of a node, usually will pick the ones that pays the most

  1. The difference between a SPV (simplified payment verification) and a full node are: an SPV does not have a full version of the blockchain stored. SPVs only utilize the parts of the blockchain that matters, and trust other nodes that have full copies of the blockchain for validity and verification. One example of an SPV is a mobile phone wallet. Nodes also work check the validity of unconfirmed transactions and if valid, place transactions into the mempool for miners to pick out (miners are nodes themselves too). SPVs do not check anything other than what they need to function properly.

  2. When a transaction is broadcasted across the network, it means that once it’s validity is confirmed, nodes propagate / share this transaction with other nodes, to let them know that the transaction is valid and needs to be added to the mempool so that a miner can choose to pick it up and have it further down get confirmed in a block.

  3. Generally, a miner picks the transactions that have the highest fees for their block, since they are financially incentivized to do so and get to keep the transaction fees alongside the block reward (until there is none) if they find a valid solution to their block puzzle.

  1. Full nodes serve connected SPV’s allowing them to transmit transactions. SPV’s can query the full node thus needing a partial copy of the blockchain.
  2. Propagated to the nodes of the network.
  3. Miners will pick transactions with the best incentive
  1. An SPV uses Bitcoin without running a full node. Connecting to a node to verify if a transaction is included in a block without downloading the entire block.

  2. A transaction is propagated and then sent out to all the nodes for confirmation and then available across the entire network.

  3. Miners choose the transactions with the highest fees - for the most part.

  1. A SPV does not store the blockchain locally and instead queries a full node.

  2. A transaction is broadcast when it is sent to the mempools of nodes across the network.

  3. A miner picks the transactions with the highest transaction fees.

  1. A full node contains the whole record of the blockchain. An SPV is a limited record of the blockchain that relies on querying full nodes to verify the state of transactions
  2. When a wallet intends to perform a transaction it needs to propagate it through the network
  3. Miners favor transactions with the highest fee (satoshi per byte)

1 SPV don’t store data from blockchain. Full node is connected to blockchain.
2 The transaction was valid and it was put in Mempool and ready to be pick miner.
3 Miners takes first with highest fees.

  1. Full node is complete version of the blockchain and SPV requests sort off updates on the blockchain version from full nodes.
  2. It means that it is on the blockchain and all the network agreed that it is true.
  3. They choose the ones that pays higher fees.
  1. An SPV node does not contain the entire transaction history
  2. That is sent to the network from one node to all of its connected notes
  3. A miner has incentives to pick the transactions which include the highest fees, for maximum profit
  1. What is the difference between a SPV (simplified payment verification) and a full node?
    A SPV is a node that does not have the entire blockchain. The blockchain is a lot of GB’s so it can not run on a phone, for example, but a node is usually a computer with great power. A SPV trusts a node regarding the blockchain.

  2. What does it mean when a transaction is broadcasted?
    A transaction is broadcasted when it is propagated on all the nodes of the network (blockchain), and they wait in the mempool until a miner creates a new block with that tx.

  3. How does a miner pick which transactions that gets added to the next block?
    Miners choose the txs with highest fees, as they work by incentive and need to cover their electricity expenses.

1-What is the difference between an SPV (simplified payment verification) and a complete node?
An SPV is a “mini node” generally used in cell phones, which doesn’t have all the information of the ledger; but query the blockchain information to the nearest complete node. A complete node if it has all the copy of the blockchain and its transactions.

2-What does it mean when a transaction is transmitted?
It is when a confirmed transaction is propagated throughout the blockchain so that the copies that each node has are updated.

3-How does a miner choose which transactions are added to the next block?
Choose the transactions contained in the Mempool that have the highest commission.

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1.An SPV has the same functions as a full node but does not store a full version of the Blockchain. It will query a full node for the blockchain.
2. That the wallet propagates the tx to the nodes that will first check if the balances check out before adding it to their mempool
3. He chooses the transactions with the highest fees from the mempool on his own node or another node

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  • What is the difference between a SPV (simplified payment verification) and a full node?
  • a SPV does not have a copy of the ledger and needs to connect to a node.
  • What does it mean when a transaction is broadcasted?
  • the transaction is propagated to all nodes.
  • How does a miner pick which transactions that gets added to the next block?
  • the transaction which the highest fees will be picked.
  1. A full node maintains a copy of the entire blockchain, whereas an SPV doesn’t. A full-node wallet can therefore check its own copy of the blockchain for the UTXOs it can spend, whereas an SPV wallet has to query and request this information from full nodes.

  2. When a transaction is broadcast, it is sent from a wallet to nodes for validation and further propagation throughout the network.

  3. A miner analyses statistical information about the transactions in the mempool, and selects the transactions with the highest fees in terms of fee-to-size ratio (i.e. with the highest satoshis per byte). A miner picks these transactions to include in their next candidate block, in order to maximise their potential income from transaction fees.

1 SPV just shows what is on the blockchain and communicates with it
full node has a copy of the entire blockchain

2 a transaction is considered valid and sent to all the nodes in the network

3 depends on the miner. most likely the one with the highest transaction fee.

Full nodes store the hole Blockchanin and the spv validates transactions on a nearby full nodes.

The transactions is spread to all nodes.

Picks the transaction with the highest fee.