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Could someone describe how the full node chooses transactions from the mempool that make it into a block.
I suppose there must be some logic that makes a compromise between fees and gas cost but it would be great if someone could detail the logic here, thanks!
A baker is free to include whatever operations it wants, as long as they are valid. By default a baker want to create the block that generate the highest amount of fees (most bakers will also have a minimum fee threshold to pass prevalidation). In combinatorial optimization this is described as a knapsack problem. So how the baker choose transactions is essentially based on incentives. Except from maximizing the income from fees, a baker could choose to prioritize some transactions over others (e.g. give priority to its own delegation payouts).
