Cryptomining Concepts BBLC Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A developer is explaining to a client how a new PoW blockchain validates transactions. The client asks, 'What exactly does a miner do when they mine a block?' Which statement best describes the miner's role?

   • AThe miner simply broadcasts all pending transactions to the network without any validation
   • BThe miner stores a copy of the entire blockchain and shares it with other nodes
   • CThe miner creates new coins out of thin air and distributes them to users
   • DThe miner collects pending transactions, validates them, and performs computational work to find a valid block hash
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   A small startup wants to mine a PoW cryptocurrency using its existing office desktops with consumer GPUs. They estimate that the network hash rate is extremely high, making solo mining impractical. The team wants a steady, predictable income stream and is willing to pay a small fee. What should they do?

   • APurchase ASIC miners to increase hash rate and continue solo mining
   • BUse cloud mining services to avoid hardware management
   • CSwitch to a GPU-only cryptocurrency with lower network difficulty and mine solo
   • DJoin a mining pool that uses a proportional reward system
   Reveal Solution Discussion Select an answer first
4. 33expert · hard

   A government is evaluating the environmental impact of cryptocurrency mining in its region. They want to reduce carbon emissions while still supporting blockchain innovation. They have abundant renewable energy but also a high demand for electricity from other sectors. Which policy is most effective in reducing the carbon footprint of mining?

   • AIncentivize miners to use renewable energy sources through tax credits and subsidies
   • BImpose a carbon tax on all mining operations regardless of energy source
   • CEncourage miners to use more efficient ASIC hardware
   • DBan all PoW mining activities to eliminate emissions
   Reveal Solution Discussion Select an answer first
5. 34expert · hard

   A mining company is planning to mine a new PoW coin that uses a memory-hard algorithm designed to be ASIC-resistant. The company has a large budget and wants to maximize hashrate. Which hardware strategy is most appropriate?

   • APurchase ASIC miners that are optimized for the algorithm.
   • BUse a mix of CPUs and GPUs to balance cost and performance.
   • CUse cloud computing instances with high memory bandwidth.
   • DDeploy a large number of GPUs, which are well-suited for memory-hard algorithms.
   Reveal Solution Discussion Select an answer first
6. 35application · medium

   A cryptocurrency network has a target block time of 2 minutes. Over the past 2 weeks, the average block time has been 2.5 minutes. What will happen to the mining difficulty at the next adjustment?

   • ADifficulty will decrease to make it easier to find blocks and bring the block time back to 2 minutes
   • BDifficulty will remain the same because the deviation is within the acceptable range
   • CDifficulty will be adjusted based on the number of miners, not the block time
   • DDifficulty will increase to make it harder to find blocks and slow down block production
   Reveal Solution Discussion Select an answer first