Mempool

What is a Mempool in Cryptocurrency and Blockchain?

The term Mempool is a short name for 'memory pool'. In the domain of cryptocurrency and blockchain, a Mempool is a collective holding area for transactions that await confirmation. Each node in a blockchain network has its own Mempool.

Working Principle of Mempool

When a transaction is initiated, it first lands in the Mempool before being confirmed by miners. A transaction enters the Mempool as soon as it is broadcasted to the network, and leaves once it gets included in a block. However, if a transaction stays in the Mempool for too long without getting picked up, it could eventually be dropped.

Mempool in Bitcoin Network

In the context of the Bitcoin network, every node possesses its local Mempool, storing unconfirmed transactions. The miners pick the transactions, from this collection, they wish to confirm based on various factors such as transaction fees.

Why is Mempool important?

A Mempool is a vital aspect of the cryptocurrency transaction process. It not only acts as a waiting room for unconfirmed transactions but also helps in determining transaction fees. Miners often prioritize transactions that come attached with higher fees, making Mempool a market for transaction fees.