Mempool Definition
In the domain of blockchain and cryptocurrencies, the term “Mempool”, which is short for Memory Pool, refers to a node’s storage area for transactions that are waiting to be confirmed and included in the blockchain. These are unconfirmed transactions that each miner has received and is preparing to confirm and post to the blockchain.
Mempool Key Points
- Mempool stores unconfirmed transactions waiting for block confirmation.
- Each node has a different Mempool, meaning transactions can have varying wait times.
- The size of the Mempool and the number of transactions can affect transaction fees and times.
What is Mempool?
As per Bitcoin and other cryptocurrencies, Mempool plays a vital part in transaction processing. Whenever a Bitcoin transaction is created, it doesn’t get added to the blockchain immediately. Instead, it finds a place in the Mempool where it awaits miners to confirm it.
Where Does Mempool Operate?
Mempool operates within each node in the blockchain network. Every node has its own instance of the Mempool, where incoming transactions are stored until they are confirmed. While each Mempool instance generally holds the same transactions, they may vary slightly due to the fact that nodes can join, leave, and rejoin the network at any time.
When Does Mempool Come into Function?
The Mempool comes into function when a transaction is initiated. The transactions are then relayed to all the nodes in the network. While waiting to get added to the next available block, they remain in the Mempool of each node. Transaction size, as well as transaction fees, can play a part in the prioritization and timing of when each transaction is added from the Mempool to a new block.
Why is Mempool Important?
Understanding the concept and function of the Mempool can help users comprehend why transaction times can sometimes be long and why transaction fees can vary. If the Mempool is full, or ‘backed up’, it may take more time for transactions to be confirmed. Additionally, miners may choose to confirm transactions with higher fees first, hence the Mempool can also affect the transaction cost.
How Does Mempool Work?
The Mempool operates as a holding area for unconfirmed transactions. When a transaction is initiated, it is first verified and then sent to the Mempool. Miners select transactions from their Mempool to confirm and add to the next block. Decisions on which transactions to add are often based on the transaction fee, with higher fees often getting priority. Once a transaction is confirmed, it is removed from the Mempool and added to the blockchain.
