Cryptomining and the Mining Ecosystem BDC Practice Questions (Page 2)

Questions 6–10

1. 6expert · hard

   A mining farm is evaluating whether to continue operating in a region with strict environmental regulations. The farm uses older ASIC miners that are energy-inefficient. The local government is considering a carbon tax on electricity used for mining. Which strategy would best address both the environmental concern and the financial impact of the tax?

   • AReplace the ASIC miners with newer, more energy-efficient models to reduce electricity consumption and tax liability.
   • BMove the farm to a jurisdiction with no carbon tax, ignoring the environmental impact.
   • CContinue using the same hardware and pay the carbon tax, passing the cost to investors.
   • DSwitch to GPU mining, which is more energy-efficient than ASIC mining.
   Reveal Solution Discussion Select an answer first
2. 7application · easy

   A miner is considering whether to include a transaction with a high fee in the next block. The block is not yet full. What is the most likely reason to include this transaction?

   • ATo reduce the mining difficulty for the block, making it easier to find a valid hash.
   • BTo increase the block's size, which is required for the block to be valid.
   • CTo increase the total reward for the block, since the miner collects transaction fees.
   • DTo speed up the confirmation of the miner's own transactions.
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   What is the primary function of mining software in a cryptocurrency mining operation?

   • ATo create new cryptocurrency wallets for miners
   • BTo replace the need for a mining pool by directly controlling the blockchain protocol
   • CTo design the physical layout of mining hardware
   • DTo connect the mining hardware to the blockchain network and coordinate the hashing process
   Reveal Solution Discussion Select an answer first
5. 9expert · hard

   A blockchain network is experiencing a decrease in total hashrate due to miners leaving. The network's block time is increasing beyond the target. What is the most likely outcome of the next difficulty adjustment?

   • ADifficulty will remain the same because the protocol only adjusts every 2016 blocks.
   • BDifficulty will decrease, making it easier for remaining miners to find blocks and restoring the target block time.
   • CThe block reward will increase to attract miners back to the network.
   • DDifficulty will increase to compensate for the reduced hashrate.
   Reveal Solution Discussion Select an answer first
6. 10application · easy

   A miner successfully finds a block that includes several transactions. The block reward is 6.25 coins and the total transaction fees in the block are 0.5 coins. How much does the miner receive?

   • A6.25 coins, and the transaction fees are returned to the senders.
   • B6.75 coins, because the miner receives both the block reward and all transaction fees included in the block.
   • C6.25 coins, because transaction fees are burned or distributed to the network.
   • D0.5 coins, because the block reward is distributed among all miners in the network.
   Reveal Solution Discussion Select an answer first