Cryptomining Concepts BBLC Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   A blockchain startup wants to build a network where transaction validation does not require specialized mining hardware and where energy consumption is a key concern. Which consensus mechanism should the startup choose?

   • AProof of Stake, where validators are selected based on the amount of cryptocurrency they lock up.
   • BProof of Work, but using only CPUs to avoid specialized hardware.
   • CProof of Work, but with a lower difficulty to reduce energy consumption.
   • DProof of Authority, where validators are chosen by a central authority.
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   Which of the following is a common mitigation strategy to reduce the environmental impact of cryptomining?

   • AReducing the number of transactions per block
   • BUsing renewable energy sources to power mining operations
   • CIncreasing the block reward to incentivize more efficient mining
   • DUsing more powerful ASICs to mine faster
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A company runs a small PoW mining farm. Over the past month, the network's total hashrate has increased significantly, but the block time has remained stable. What is the most likely reason for this stability?

   • AThe company's mining software automatically optimized its algorithm to maintain block time.
   • BThe network's mining difficulty automatically increased to offset the higher hashrate.
   • CThe block reward was reduced to slow down the rate of new block creation.
   • DThe network switched from PoW to a hybrid consensus mechanism to stabilize block time.
   Reveal Solution Discussion Select an answer first
5. 29expert · hard

   A consortium of banks wants to build a private blockchain for interbank settlements. They require fast finality, low energy consumption, and the ability to control who participates. Which consensus mechanism is most appropriate?

   • AProof of Stake, but with a public validator set.
   • BProof of Authority, where a set of approved validators are responsible for producing blocks.
   • CProof of Work, but with a small number of miners to reduce energy use.
   • DDelegated Proof of Stake, where token holders vote for delegates.
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   Which of the following is a primary advantage of Proof of Stake over Proof of Work?

   • AHigher level of decentralization
   • BLower energy consumption
   • CNo need for a cryptocurrency to participate
   • DFaster block times guaranteed
   Reveal Solution Discussion Select an answer first