Mempool is a shortened term for “memory pool.” In cryptocurrency, the mempool is where valid transactions are temporarily stored before being confirmed by miners and added to a block on the blockchain. Think of the mempool as a waiting area for transactions.
When a user initiates a cryptocurrency transaction, it is broadcasted to the network and enters the mempool. Miners then select transactions from the mempool to include in the next block they are working on. Transactions that offer higher fees usually get prioritized because miners are incentivized to process transactions with higher fees first.
The size of the mempool can fluctuate depending on various factors such as network congestion, transaction volume, and fee levels. During times of high network activity, the mempool can become congested with pending transactions, causing delays in confirmation and higher fees due to increased competition.
Overall, the mempool plays a crucial role in the cryptocurrency ecosystem by temporarily holding and prioritizing transactions before they are added to the blockchain.
