Bitcoin Blockchain Architecture BBLC Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   What happens to the block reward for Bitcoin miners over time?

   • AIt is halved approximately every four years
   • BIt increases with the difficulty of the network
   • CIt is determined by the number of transactions in the block
   • DIt remains constant forever
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   How is a Bitcoin address typically derived from a public key?

   • ABy applying a cryptographic hash function to the public key
   • BBy using the public key as the address directly
   • CBy generating a random number independent of the public key
   • DBy encrypting the public key with the private key
   Reveal Solution Discussion Select an answer first
4. 28expert · hard

   A government agency is considering using Bitcoin's blockchain to publish a public record of land titles. The agency wants to ensure that once a title is recorded, it cannot be altered by a malicious actor. Which property of Bitcoin's architecture provides the strongest guarantee of immutability for this use case?

   • AThe encryption of all transaction data, making it impossible for anyone to read or modify the records.
   • BThe requirement that all nodes must agree to any change, which is achieved through a voting system.
   • CThe use of a central authority that periodically audits the blockchain and corrects any discrepancies.
   • DThe decentralized network of full nodes that each maintain a copy of the entire blockchain and reject invalid changes.
   Reveal Solution Discussion Select an answer first
5. 29expert · hard

   A Bitcoin miner observes that the network's total hash rate has doubled over the past two weeks. The miner's hardware has not changed. Which outcome is most likely, assuming the difficulty adjustment occurs as scheduled?

   • AThe difficulty will increase at the next adjustment, making it harder for the miner to find blocks, and the miner's share of block rewards will likely decrease unless the miner's hash rate also increases.
   • BThe miner's chance of finding a block will remain the same because difficulty is based on the number of miners, not hash rate.
   • CThe block reward will increase to compensate miners for the higher difficulty.
   • DThe difficulty will decrease because the network wants to encourage more miners to join.
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A company wants to accept Bitcoin payments but is concerned about the risk of double-spending. The company plans to wait for a certain number of confirmations before shipping goods. Which statement best explains why waiting for confirmations reduces double-spend risk?

   • AEach confirmation increases the transaction fee, which incentivizes miners to keep the transaction in the chain.
   • BEach confirmation requires the sender's private key to be re-entered, which prevents the sender from double-spending.
   • CEach confirmation represents an additional block mined on top of the transaction's block, making it increasingly difficult for an attacker to reorganize the chain and reverse the transaction.
   • DAfter six confirmations, the transaction is permanently locked and cannot be reversed under any circumstances.
   Reveal Solution Discussion Select an answer first