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Wallet Mechanics, mining - Coggle Diagram
Wallet Mechanics, mining
SPV
reference client (btc core)
- wallet
- full blockchain database
- network routing node
Lightweight SPV
- wallet
- network node routing to btc p2p protocal
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walletbackups
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HD wallets (heirarchical deterministic)
- one way hash, adding index number to end of seed
mining
recipe
- entire bitcoin blockchain
- verify tx
- create block
- find a valid nonce
- broadcast block
- profit
- verify
- miners choose tx from mempool
- verify validity running unlocking script
- create block
- gather tx into block, choose trascation with highest fee
- get previous blockhash and other metadata (time, version target)
- find valid nonce
- find header coinbase nonce first
- find nonce which makres hash of the block less than target value
- Broadcast
- broadcast to rest of network which will verify the trascation
Mining pools
- managed by operator with full node
mining schemes
- pay per share
- proportional shares
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mining incentives
tx fees + block reward. as reward decrease, higher tx fees
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