The mempool is a virtual waiting room where the Bitcoin node collects pending transactions, storing unconfirmed transactions on the network until they are added to a block by a miner. The term 'mempool' is a contraction of 'memory pool', this memory pool stores all pending transactions until they are validated and added to the next block on the blockchain. In other words, it is like a storage area where all pending and unconfirmed transactions hang out until they are validated by miners and added to the blockchain.
Mempool stage in a typical (simplified) transaction flow:
- User initiates a transaction (Ex: send funds to another account or contract from a Dapp or Wallet).
- The user signs the transaction with his wallet.
- The signed transaction is passed to a node or gateway node.
- The node verifies the validity of the transaction and adds it to its MEMPOOL.
- The node broadcasts the transaction to other nodes.
- The other nodes will receive the transaction, validate it, move it to their own MEMPOOL and broadcast it to other peers, replicating the transaction across the network.
- The miners receive the transaction from the peers, validate it and attempt to add it to a block.
- The successful miner adds a block with the transaction to the chain.
- The new block is disseminated throughout the network.
- When all nodes receive the new block from their peers and see the included transaction they remove it from their MEMPOOL.
The importance of knowing and understanding the mempool is because it helps us understand how transactions are processed in the Bitcoin network. It is up to Bitcoin miners to verify each node and proposed transactions, the process miner then passes the proposed transaction to other nodes who verify it and add it to their mempools, once all nodes have verified a transaction, they pass it back to the miner who can pick it up, add it to a block and is compensated with rewards for their effort. As more miners pick up our transaction, competition increases and miners may demand a higher fee in order to keep our transaction "at the top" of the queue.
As more transactions are added to the mempool, the mempool becomes larger and more congested, this results in longer average confirmation times and requires higher priority fees in order for the added transactions to be processed faster. The motivation for miners to choose these higher priority rates is profit, as these higher rates translate into higher rewards for them. Each node in the Bitcoin network has its own set of mempools, which means that there is no global mempool of transactions, as seen in other decentralized cryptocurrencies.
When the mempool is full, our transaction may take longer to be confirmed, in other words, when very small amounts of bitcoin are sent, our transaction may not be confirmed immediately, as miners prefer to process transactions with higher fees. This means that low priority transactions in the mempool can take a long time to process or even be discarded altogether if there are too many coming in at any given time, so the mempool allows users to calculate their transaction fees and also see the current level of network congestion by providing an estimate of how long it will take for a transaction to be confirmed.
A very useful tool is the a decentralized platform https://mempool.space provides miners with a simple way to identify and sort through the waiting room of unconfirmed transactions, helping to select and confirm them into new blocks on the blockchain quickly and efficiently, resulting in a shorter average confirmation time for payment transactions.
In addition (and this is the part that most interests us common users) https://mempool.space allows us to track unconfirmed transactions of various cryptocurrencies helping us to identify the highest priority commissions so that our transactions are confirmed faster than the current average confirmation time. This can be very useful for us in deciding whether it is worth paying a higher fee to have the transaction processed faster and more securely.
Tools, Platforms and Applications:
Note: Related to the links, what is marked in parentheses are the invitation or referral codes that in some cases are necessary to receive the reward or bonus. The promotions offered by the different tools, applications and platforms tend to vary over time, I recommend that you do your own research.
Some of the best Hardware Wallet or Cold Wallet: 🔐💰
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- CoinMarketCap (
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- TradingView - Charting platform and social network (Indispensable tool for traders).
Some cryptocurrency exchanges (Uncensored):
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“Everyone has their own forms of expression. I think we all have a lot to say, but finding ways to say it is more than half the battle" - Criss Jami (existentialist philosopher, poet, essayist, musician, singer, designer and lyricist).
"Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth" - Marcus Aurelius (Roman Emperor).
"You will ask yourself: And if I take a risk and lose...? I will ask you: AND IF YOU RISK AND WIN? Success begins with thought, because sooner or later the man who wins is the one who believes he can do it. Do not be afraid of mistakes or failure, winners are not afraid of losing, losers are, in most cases the risk comes from not knowing what you are doing, so trust yourself, learn, be patient, manage your emotions and above all, enjoy the journey, what the wise man does at the beginning, the fool does at the end" - Anonymous.
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Author's Note: The opinion expressed here is not investment advice, is provided for informational purposes only, and reflects the opinion of the author only. I do not promote, endorse or recommend any particular investment. Investments may not be right for everyone. Every investment in the market and every trade you make involves risk, so you should always do your own research before making any decision. I do not recommend investing money that you cannot afford to chair, as you could lose the entire amount invested.