..

The Bitcoin White Paper: Reclaiming Disk Space and Simplified Payment Verification (SPV)

Written by:
C Costigan
Published on:
Apr/12/2021

Continuing in the series of YouTube episodes where Dr. Craig S. Wright and Ryan X. Charles discuss the Bitcoin white paper line-by-line, we arrive at the part of the discussion addressing multiple subjects. Both Reclaiming Disk Space and Simplified Payment Verification are talked about including a few other informative topics that sprung up.  

In order to relieve the massive amount of storage needed for all of the Bitcoin transactions that occur on the network, it is understood that not every node will need to store that data permanently. Whatever the amount of blocks past a certain transaction, decided by that node, would be sufficient for accessing data in an immediate need. Everything occurring before that could be eliminated by that node. Of course, as we know, the block headers will always be stored. 

Understanding that not every node will need to keep every transaction, there will be nodes identified as archival nodes. These nodes would be incentivized to maintain the full spectrum of data that occurs on the network as it relates to every transaction. Other nodes would be able to request that information from the archival node should they have a need. Not having every transaction frees up space however it does slow the process of retrieving information due to having to go through this process. 

Simplified Payment Verification (SPV) as explained by Craig, “it is the user protecting his own information and having it ready to be used”. It allows a user to verify that a transaction is in a block but it does not require the user to have the entire blockchain downloaded. They only need to have the blockchain header. Once again having the header is the most important component. With the header, you can request proof of inclusion within the block. SPV makes it possible to verify transactions without having to operate a full network node. 

SPV uses the Merkle Tree or Binary Tree for the purposes of verifying transactions. Because the Merkle Tree is a complete hash of all hashes of transactions located within a block, all transactions can be verified by nodes. It can be checked without having to download all of the transactions from a block. This helps to expedite verification of a transaction as well as keeping storage space free for future use. 

Far more than what is mentioned here in this narrative is discussed by both Craig and Ryan in this episode of their line-by-line discussion of the Bitcoin White Paper. Viewing the video in its entirety is highly recommended.     

Business/Financial News

Get a Job in Cryptocurrencies

Get a Job in Cryptocurrencies

Getting a job in cryptocurrency will more than likely require a certificate or degree.  One can begin by taking online courses.  Bitcoin Theory covers the design of Bitcoin as a system as prescribed by Satoshi Nakamoto.

Bitcoin Was Created With the Gambling Industry in Mind

Bitcoin Was Created With the Gambling Industry in Mind

In a sign that life may be coming back to normal following over a year of dealing with a global pandemic, CoinGeek's Rebecca Liggero Fontana sits down with the one and only Dr. Craig Wright in her first in-person interview in more than a year.

 One-Stop Wallet, Please!

One-Stop Wallet, Please!

While it may not be prudent to keep all of your eggs in one basket, it would certainly be nice if you could buy all of your eggs from the same market regardless of which eggs you want. The same could be said about the numerous crypto currencies available today. There are new ones popping up what seems to be almost every day. The problem is that you need to have multiple crypto wallets and use multiple exchanges in order to acquire, trade or sell them. 

SpaceX Accepts Dogecoin as Payment to Launch Moon Mission Next Month

SpaceX will launch a satellite to the moon next year funded entirely with the cryptocurrency dogecoin, Canadian company Geometric Energy Corporation (GEC), which will lead the lunar mission, announced on Sunday (May 9).

Dogecoin Tumbles After Musk Calls it a "Hustle" on SNL

Dogecoin Tumbles After Musk Calls it a "Hustle" on SNL

Plus Ethereum promoter explains why he believes Dr. Craig Wright Satoshi claims

Syndicate