Bitcoin Mining, Forking, and Scalability Solutions BDC Practice Questions (Page 10)

Questions 46–50

1. 46foundation · easy

   Why does Proof of Work (PoW) require computational effort to achieve consensus in the Bitcoin network?

   • ATo allow miners to verify transactions more quickly
   • BTo ensure that every transaction is processed within a fixed time
   • CTo make it costly to create blocks, thereby deterring malicious actors from rewriting history
   • DTo reduce the energy consumption of the network
   Reveal Solution Discussion Select an answer first
2. 47foundation · easy

   What is a sidechain in the context of Bitcoin scalability?

   • AA method of increasing the block size limit on the main chain
   • BA type of soft fork that adds new opcodes
   • CA Layer 2 payment channel network
   • DA separate blockchain that runs in parallel to the main chain and allows assets to be transferred between them
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4. 48application · medium

   A mining company is evaluating whether to replace its GPU miners with ASIC miners. What is the primary trade-off they should consider?

   • AGPUs offer higher hash rates but consume more electricity per hash.
   • BGPUs are more energy-efficient but have lower hash rates.
   • CASICs are cheaper to purchase but require more maintenance.
   • DASICs offer higher hash rates and energy efficiency but are specialized and become obsolete quickly.
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5. 49expert · hard

   A company wants to use the Lightning Network for microtransactions but is concerned about the security of funds locked in payment channels. What is the primary risk they should mitigate?

   • AThe channel could be closed automatically after a certain time.
   • BThe Bitcoin network could increase block size, invalidating Lightning channels.
   • CA malicious channel counterparty could broadcast an old state to steal funds.
   • DMining difficulty could increase, making channel closures too expensive.
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6. 50expert · hard

   A developer is building a Lightning Network application and needs to ensure that users can route payments reliably. They are concerned about channel liquidity and the need for on-chain transactions. Which strategy best mitigates the risk of payment failure due to insufficient liquidity?

   • AOpen multiple channels with well-connected nodes and maintain sufficient inbound and outbound capacity.
   • BUse a single large channel with a major node to ensure all payments can be routed.
   • CIncrease the block size limit to allow more on-chain transactions as a fallback.
   • DRely solely on the base layer for all transactions to avoid liquidity issues.
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