Blockchain Consensus Mechanisms and Their Applications BBLC Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A new blockchain developer is comparing PoW mining and PoS validation. They want to understand the fundamental difference in how each process adds new blocks to the blockchain. Which statement accurately describes this difference?

   • APoW mining requires validators to hold tokens, while PoS validation requires solving cryptographic puzzles
   • BPoW mining is energy-efficient, while PoS validation is energy-intensive
   • CPoW mining uses computational work to solve a puzzle, while PoS validation uses a validator's staked tokens to be selected to propose a block
   • DPoW mining and PoS validation both require solving complex mathematical problems
   Reveal Solution Discussion Select an answer first
2. 12expert · hard

   A global remittance company is choosing a blockchain for cross-border payments. They need high transaction throughput, low fees, and the ability to process transactions 24/7. They are evaluating a public PoS network and a DPoS network. The company is concerned about the risk of a small group controlling the network. Which factor should be the primary consideration in their decision?

   • AThe block time and transaction fee structure
   • BThe number of validators and the distribution of stake
   • CThe market capitalization of the cryptocurrency
   • DThe programming language used to write smart contracts
   Reveal Solution Discussion Select an answer first
4. 13foundation · easy

   What is cryptomining in the context of blockchain?

   • AThe process of creating new cryptocurrency tokens out of thin air
   • BThe process of storing cryptocurrency in a digital wallet
   • CThe process of encrypting transactions for security
   • DThe process of validating transactions and adding new blocks to the blockchain
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   What is a primary trade-off of Proof of Work consensus?

   • AComplete decentralization but no way to prevent double-spending
   • BLow security but very fast transaction finality
   • CNo need for specialized hardware, making it accessible to all
   • DHigh energy consumption in exchange for strong security against certain attacks
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A developer is evaluating a new blockchain platform's token. The token is required to pay for transaction fees and can be staked to earn rewards. The platform has a growing number of decentralized applications (dApps) being built on it. Which factor is most likely to drive the token's value?

   • AThe total supply of the token being fixed at a low number
   • BThe token being listed on a major exchange
   • CThe increasing demand for the token due to its utility in paying fees and staking, combined with network effects from the growing dApp ecosystem
   • DThe team's marketing efforts and social media presence
   Reveal Solution Discussion Select an answer first