- How do transactions get included in a block?
When you initiate a transaction, it must be authorized for evidence of spending by the real owner of the wallet address by presenting a valid digital signature. Your transaction is then spread to the decentralized Bitcoin network (decentralized nodes), the first node validates your transaction, and if it is true, it redistributes it to other bitcoin nodes until it reaches the last node, and lastly, the mining node verifies your transaction to be included in the next block of transactions. That transaction will forever remain in the bitcoin global ledger.
A Transaction
>>> Digital signature
>>> Bitcoin Network(Nodes)
>>> Mining Node
>>> Global Ledger
- Are miners responsible for deciding which transactions are included in a block? I thought miners work towards finding the solution for the block.
I remember asking a similar question some weeks ago and the response from ETFbitcoin was: the mining pool choose the transaction.
In practice, mining pool usually is the one who choose the transaction.
- If so, the block must be already created ? Who created this block ?
Blocks (blocks of transactions) are arranged in a series of numbers, new transactions get added to new block whenever new transactions are created. Miners compete to find the nonce of that transaction, whoever has the most hash rate will likely solve the puzzle and include it in a fresh block.
- When I send a bitcoin transaction, does it get sent to a miner ? How does my client (such as electrum) know whom to send the transaction to?
Check my first illustration.
- What other parameters are taken into consideration while including a transaction into a block for eg. Fee? If so, is it possible that Russian bitcoin addresses can give an incredibly large fee to incentivise miners to include the transaction?
Of course, the fees determine the chances of your transactions to be included in the next block. If I decide to run my node, there is no way of anyone knowing the origination of my transaction with a well-secured VPN.
Apologies if my questions are too basic. If there are reading materials that explain in detail how the Bitcoin network works relating to some of the questions I posted above, I'd appreciate it if you can point me in that direction.
To know how mining works, check this beginner illustration on mining.
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[1]
https://learnmeabitcoin.com/beginners/mining