Blockchain Consensus Mechanisms and Their Applications BBLC Practice Questions (Page 11)

Questions 51–55

1. 51foundation · easy

   What is a common trade-off of Delegated Proof of Stake compared to Proof of Work?

   • AHigher transaction throughput but potentially less decentralization
   • BGreater decentralization but slower block times
   • CNo need for token holders to participate in governance
   • DLower energy consumption but weaker security against 51% attacks
   Reveal Solution Discussion Select an answer first
2. 52application · medium

   A small cryptocurrency startup is launching a Proof of Work coin. They want to ensure that early miners are incentivized to participate and that the network remains secure even if individual miners have limited hash power. Which approach best addresses both concerns?

   • ARely solely on transaction fees to incentivize miners
   • BSet a very high block reward that decreases rapidly over time
   • CUse a Proof of Stake mechanism instead of Proof of Work
   • DOffer a block reward and transaction fees, and encourage participation in mining pools
   Reveal Solution Discussion Select an answer first
4. 53foundation · easy

   What is a potential negative impact of mining pools on network decentralization?

   • AThey reduce the security of the blockchain
   • BThey make it harder for new miners to join
   • CA few large pools could control a majority of the network's hash power
   • DThey increase the energy consumption of the network
   Reveal Solution Discussion Select an answer first
5. 54foundation · easy

   Which consensus mechanism is generally considered the most energy-efficient among the following?

   • AProof of Authority
   • BProof of Work
   • CDelegated Proof of Stake
   • DProof of Stake
   Reveal Solution Discussion Select an answer first
6. 55foundation · easy

   Which of the following is a common role of a token in a blockchain ecosystem?

   • AEncrypting the blockchain data
   • BStoring the entire transaction history
   • CServing as the only means of communication between nodes
   • DProviding governance rights to token holders
   Reveal Solution Discussion Select an answer first