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Author Topic: How Bitcoin transactions work and what are their types?  (Read 918 times)
wwzsocki (OP)
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October 02, 2019, 08:08:47 AM
Merited by tbct_mt2 (1)
 #21

...do you believe that's actually a form that can scale it in the long run considering the hyper hefty blockchain size that's technically too high for an average sized hard disk of a PC if people decide to run a node through downloading the whole blockchain?
...I believe that compression of Blockchain could be the only possible scenario that could help...

Lately, I have talked about the full nodes count and how the "hyper hefty blockchain size" will affect the future number of nodes and Bitcoin itself.

To be honest we haven't found the answer about the influence on BTC itself but full nodes and in particular their quantity looks to be not affected.

Despite everything, the number of full nodes increases every year and today we have already 9137 according to https://bitnodes.earn.com/.



It looks like a phenomenon to me.

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According to NIST and ECRYPT II, the cryptographic algorithms used in Bitcoin are expected to be strong until at least 2030. (After that, it will not be too difficult to transition to different algorithms.)
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October 02, 2019, 11:42:02 AM
 #22

Despite everything, the number of full nodes increases every year and today we have already 9137 according to https://bitnodes.earn.com/.

The number of all full nodes is actually much higher. This website lists nodes which are reachable for others, meaning that they can share blocks with other users. Some people don't know how to configure their networks properly or might intentionally block it to save the bandwidth.
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October 03, 2019, 08:26:09 AM
Merited by wwzsocki (1)
 #23

The geographical distribution of bitcoin full nodes that visually presented by the image, gives us the fact that China has much less impacts on bitcoin, technically (at least). What we saw on social media, news that China has significant effects on bitcoin (positively or negatively depends on different periods) are very incorrectly.

China obviously has some of biggest bitcoin mining farms but technically impacts on bitcoin is much smaller than what we usually thought.

In the top ten nations: 3 come from Asian continent, 2 come from American continent, and 5 come from European continent.
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October 03, 2019, 10:20:21 AM
Last edit: October 03, 2019, 10:44:23 AM by wwzsocki
 #24

The geographical distribution of bitcoin full nodes that visually presented by the image, gives us the fact that China has much less impacts on bitcoin, technically (at least)...In the top ten nations: 3 come from Asian continent, 2 come from American continent, and 5 come from European continent.

Exactly, I was also surprised to see Europe at the first place with 32,27% of all full nodes (exactly 2987) in countries like Germany, France, and the Netherlands. The second spot with 25.29% which is exactly 2341 full nodes goes to the USA and China is at 6th place with 3,53% which gives only 327 full nodes.


https://bitnodes.earn.com/

Is really surprising to see China at 6th place only with 327 full nodes because I was sure that the biggest amount will be in the biggest mining farms, but to be honest I don't know if mining is actually allowed there or not because China banned and unbanned BTC and mining so many times that I don't know what is the real situation there?


https://bitnodes.earn.com/nodes/live-map/

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October 03, 2019, 12:55:01 PM
 #25

Is really surprising to see China at 6th place only with 327 full nodes because I was sure that the biggest amount will be in the biggest mining farms, but to be honest I don't know if mining is actually allowed there or not because China banned and unbanned BTC and mining so many times that I don't know what is the real situation there?
Miners don't have to run bitcoin full nodes for their farms. They can do this or not, this is not a must for bitcoin mining farms.
From my understanding, China has biggest mining farms globally, but they are not the leading nation in blockchain technology, and it makes sense after looking at total bitcoin full nodes in China.

From that perspective, it is reasonable to see top nations are leading ones in crypto and blockchain technology, the USA, Germany, France, Netherlands.
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October 03, 2019, 03:54:35 PM
 #26

Miners don't have to run bitcoin full nodes for their farms. They can do this or not, this is not a must for bitcoin mining farms.

every miner must connect to a bitcoin full node to receive a constructed block to mine, whether they connect to a full node that they run themselves directly or through an intermediary like a pool is the only difference. for mining farms that own a lot of hashrate it is more secure and profitable to connect to a node they control instead of trusting a pool and also having to pay fees to that pool!

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wwzsocki (OP)
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October 04, 2019, 09:04:09 AM
Last edit: October 05, 2019, 03:53:26 AM by wwzsocki
 #27

...Miners don't have to run bitcoin full nodes for their farms...From my understanding, China has biggest mining farms globally, but they are not the leading nation in blockchain technology...From that perspective, it is reasonable to see top nations...the USA, Germany, France, Netherlands.

I don't think this is the reason why there are not so many full nodes in China. What @Pooya87 has written is very important:

Quote
for mining farms that own a lot of hashrate it is more secure and profitable to connect to a node they control

From my understanding, there are not so many full nodes in China because they need only a couple of them even for big mining farms. They have thousands of miners and a few or a dozen full nodes is enough for their needs. In other countries like the USA, Germany, France, Netherlands mining farms are a lot smaller and they have also a few or a dozen full nodes, just like the big once.

Now let's sum it up to better understand what I mean. There are only a few very big farms in China with only a couple of nodes and a lot more of smaller mining farms in the other countries, with the same or even bigger full nodes amounts. Additionally, all these bans for crypto mining in China for sure prevented many ordinary people from buying a miner and to start mining. So we can assume that in the other countries there is a lot more mining done by small investors on one or a few miners maximum and for safety reasons they need full nodes.

Large BTC mines in China do not translate into the number of full nodes because not every miner must be a full node and just a few or a dozen is enough, to meet their safety needs, even with hundreds of miners or more.


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October 09, 2019, 11:25:32 PM
 #28

P2MS this is the first time i am hearing this term. where did you get it from?

I provided all sources as always in the post footer, but here it is: https://learnmeabitcoin.com/glossary/p2ms

If someone is confused, it's probably because at least historically transactions with these scripts were referred to as 'standard multisig' or 'raw multisig'.

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wwzsocki (OP)
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October 10, 2019, 10:47:13 AM
Last edit: October 10, 2019, 07:45:23 PM by wwzsocki
 #29

P2MS this is the first time i am hearing this term. where did you get it from?
I provided all sources as always in the post footer, but here it is: https://learnmeabitcoin.com/glossary/p2ms
If someone is confused, it's probably because at least historically transactions with these scripts were referred to as 'standard multisig' or 'raw multisig'.

I think the best way to call it would be colloquial speech and that's correct because I found in posts or questions on Stackoverflow.com such words/names when it comes to the transactions itself and MultSig transactions. I have seen in discussion how people use these names like "raw" or "standard" when they talk about BTC transactions as a whole, but also in detailed talks about specific MultSig transactions. However, you will not you won't find this naming in professional publications, so I did not use these rather colloquial names and not mention them to not complicate this text anymore. Cryptocurrencies' language is evolving so fast that sometimes is hard to catch up.

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March 01, 2020, 06:42:07 PM
 #30

This thread has been translated to the Russisch language and here is the link: Кaк paбoтaют тpaнзaкции Биткoйн и иx типы

In my opinion, such translations confirm the quality of the text, additionally, it is also important that now monolingual people will be able to learn about the subject of Bitcoin transactions too.

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July 25, 2020, 05:54:22 PM
 #31

Is there anything new about BTC transactions? Any innovations or maybe something needs to be added/updated to already mentioned types of BTC transactions in this thread?

I wanted to update this useful thread because is quoted many times in many other source threads and summaries.

Of course, I tried to find news about BTC transactions on my own but it seems that there were no changes or new developments regarding this matter.

I wonder if there is something planned, already in development, or maybe I just missed something when I was doing the last research?

I will be happy to hear suggestions and thanks in advance for any help provided.

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July 26, 2020, 04:45:48 AM
Merited by wwzsocki (1)
 #32

Is there anything new about BTC transactions? Any innovations or maybe something needs to be added/updated to already mentioned types of BTC transactions in this thread?
any change would involve the protocol and it requires a fork. the last for we had was the SegWit soft-fork that took place mid 2017. so, no there is nothing new.

Quote
I wonder if there is something planned, already in development, or maybe I just missed something when I was doing the last research?
there is the Schnorr signature proposal that has been a BIP for some time now which you can check it if you haven't already. and there are 2 more BIPs that come after involving Taproot scripts.
Schnorr Signatures for secp256k1: https://github.com/bitcoin/bips/blob/master/bip-0340.mediawiki
Taproot: SegWit version 1 spending rules: https://github.com/bitcoin/bips/blob/master/bip-0341.mediawiki
Validation of Taproot Scripts: https://github.com/bitcoin/bips/blob/master/bip-0342.mediawiki

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July 26, 2020, 05:27:21 AM
Merited by wwzsocki (1)
 #33

You can add the new feature of blockchair.com, Privacy-o-meter. It is privacy relates to how people move their bitcoins.

Privacy-o-meter, a free tool to assess the privacy level of your BTC transaction. Their document is there.

They classify transactions into following types:
  • CB: Coinbase transaction
  • N1: Transaction with just 1 output (either a sweep to another address by the same owner, or a transfer using a "send everything I have" option)
  • N2: Transaction with 2 outputs — most common in wallets — where one of the outputs is the recipient, and the other one is the change address
  • NN: Transaction with more than 2 outputs — most common in exchanges and services that use payout batching

Blockstream.info has similar feature as well.

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