Certified Bitcoin Professional Practice Exam

SPV stands for Simplified Payment Verification, which is a method used by lightweight or mobile clients to verify transactions without having to download the entire blockchain. This is essential for devices with limited storage and processing power, enabling users to interact with the Bitcoin network efficiently.

With SPV, a client can verify that a transaction is included in a block by receiving and checking headers from full nodes, rather than downloading every single transaction. The full node retains the entire blockchain for full verification, while SPV clients rely on the Merkle tree structure to confirm that transactions are part of a block, ensuring their integrity without overwhelming their resources. This approach allows faster transaction verification and contributes to enhanced accessibility for users who wish to utilize Bitcoin with minimal resource demands.