Network - Assessment 1

1. When new transactions are broadcasted from a wallet/application to the network, which discovery process takes place?

   1. The wallet or application will broadcast that transaction to a set of recognized network peers. Once a node finds that the transaction is valid it immediately broadcasts it to it’s recognized nodes. This is repeated until all nodes are aware. Since Bitcoin incentivises the connectivity of nodes, transactions require less than 1 second for global awareness.

   2. The wallet or application will broadcast that transaction to all the nodes on the Bitcoin network simultaneously.

   3. The wallet or application will broadcast that transaction to its own node which will spread it to the rest of the network.

   4. The wallet or application will broadcast that transaction

2. What should all nodes be sufficiently capable of doing?

   1. Keeping Bitcoin blocks small enough to be stored by non-validating nodes.

   2. Validating it’s users transactions.

   3. Collecting, validating and storing all global transactions in real time.

   4. Spending and receiving transactions instantly.

3. Why are nodes and hashers a “team”?

   1. Nodes and hashers are not a “team”.

   2. The hasher ensures that the node is following the correct chain.

   3. Users tell nodes which chain it should direct hashers to provide hashpower to.

   4. A node provides hashers with a constantly updated block containing the greatest amount of transactions possible in order to maximize revenue thereby resulting in a mutually incentivized relationship.

4. What must a node do as quickly as possible once a hasher finds a valid proof-of-work?

   1. It must broadcast the block to all nodes as quickly as possible.

   2. It must keep the valid Proof-of-Work a secret.

   3. It must claim the block reward.

   4. It must spend the block reward.

5. When a node receives a recently mined block that has transactions the node has no previous record of, what will the node do?

   1. Nodes request the entire blockchain in order to be certain of the veracity of the missing transactions.

   2. The node can request additional validation by other nodes.

   3. The node can request the block be orphaned.

   4. Nodes request those transactions from the block winning node and validate them.

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