I've read the Developers Guide ( bitcoin.org/en/developer-guide ), asked a few peers and I still didn't realizedon't understand how the transactions are used to form the block.
I did get that the transactions are used to form the Merkle tree. What I'm not sure is:Do all people mining the next block use the same transactions to form the Merkle tree?
Or is it possible, let'sLet's say, that the Bitcoin network has the transactions A, B, C, X, Y, and Z. All of them are unconfirmed.
I'm mining based the transactions ABC and you are based onmining XYZ. If so, if I get the right "answer" first, withfind a block that contains ABC, I will I then proceed to usemine the XYZ transactions?
If I did the right "answer"find a block, you will have to check which transactions were validatedincluded in the block by me, before forming the next merkle tree, right? Because, ifIf not, you willmight use let's say, for example, the B transaction again, which was already confirmed by me.
I'm not sure if I'm clear. Thanks in advance