Bitcoin Mining, Forking, and Scalability Solutions BDC Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A small mining operation with 5 TH/s of hash power wants to earn a steady income from Bitcoin mining. Which approach best matches their situation?

   • AJoin a mining pool to combine hash power with other miners and receive frequent, smaller payouts.
   • BSolo mine to keep the entire block reward when a block is found.
   • CIncrease the electricity budget to double the hash rate and mine solo.
   • DSwitch to a different cryptocurrency with a lower difficulty to increase block discovery rate.
   Reveal Solution Discussion Select an answer first
2. 32foundation · easy

   What is a key characteristic of a soft fork?

   • AIt changes the block reward structure
   • BIt requires all nodes to upgrade to the new software
   • CIt is backward-compatible, meaning old nodes still accept new blocks
   • DIt always results in a permanent split of the blockchain
   Reveal Solution Discussion Select an answer first
4. 33application · medium

   A Bitcoin developer proposes a change that restricts the set of valid transactions by reinterpreting existing signature data. The change is designed so that old nodes that do not upgrade still accept new blocks. Which type of fork is this, and what is a key benefit of this approach?

   • AHard fork; it creates a new chain that is incompatible with old nodes, but it increases transaction capacity.
   • BSoft fork; it requires all nodes to upgrade immediately, but it fixes transaction malleability.
   • CSoft fork; it is backward compatible, and old nodes continue to accept new blocks, easing the upgrade process.
   • DHard fork; it allows the network to increase block size without requiring all nodes to upgrade.
   Reveal Solution Discussion Select an answer first
5. 34expert · hard

   A Bitcoin exchange is considering whether to support a new chain that resulted from a hard fork. The fork increased the block size to 32 MB and has a different difficulty adjustment algorithm. The exchange's compliance team is concerned about replay attacks. What is the most important consideration for the exchange before enabling withdrawals on the new chain?

   • AConfirm that the new chain's block time is exactly 10 minutes.
   • BVerify that the new chain has a higher market cap than the original chain.
   • CImplement replay protection to prevent transactions from being valid on both chains.
   • DEnsure that the new chain's nodes are running the same software version as the original chain.
   Reveal Solution Discussion Select an answer first
6. 35foundation · easy

   Which of the following is a consequence of Bitcoin's scalability limitations?

   • AHigher transaction fees during periods of high demand
   • BFaster block times during peak usage
   • CAutomatic increase in block size to accommodate demand
   • DLower mining difficulty when the mempool is full
   Reveal Solution Discussion Select an answer first