Simplified Payment Verification

Simplified Payment Verification (SPV) is a method used in Bitcoin wallets to verify transactions with minimal data. It allows wallets to confirm transactions without downloading the entire blockchain, instead only requiring the headers of the blocks.

The main benefits of SPV include:

• Reduced data requirements: SPV wallets only need to download block headers, not the entire blockchain.

• Increased privacy: SPV wallets don't need to rely on third-party servers for transaction verification.

• Accessibility: SPV makes it possible to run a Bitcoin wallet on low-power devices, like smartphones.

  2.1

  "SPV wallets have reduced data requirements, increased privacy, and can run on low-power devices. This makes them a popular choice for mobile Bitcoin wallets."

While SPV provides many benefits, it also has some limitations:

• Less security: SPV wallets rely on trusting miners to validate transactions.

• Limited verification: SPV wallets can't fully verify transactions as they don't have the entire blockchain.

  3.1

  "While SPV wallets are convenient, they do have some limitations. They rely on trusting miners to validate transactions and can't fully verify transactions themselves as they don't have the entire blockchain."