Cryptomining and the Mining Ecosystem BDC Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A blockchain network has seen a sudden influx of new ASIC miners, cutting the average block time from 10 minutes to 8 minutes. According to the protocol's difficulty adjustment algorithm, what should happen next?

   • AThe network will switch to a different consensus algorithm to handle the increased hash rate.
   • BThe difficulty will increase at the next adjustment, making it harder to find a valid block and restoring the target block time.
   • CThe block reward will be reduced to compensate for the faster block production and maintain the coin's inflation rate.
   • DThe difficulty will decrease to encourage more miners to join and maintain the network's hash rate.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Why do miners typically prioritize transactions with higher fees?

   • AIncluding higher-fee transactions increases the miner's total reward for the block
   • BHigher-fee transactions consume less block space, allowing more transactions per block
   • CHigher-fee transactions are more secure and less likely to be reversed
   • DMiners are required by protocol to include the highest-fee transactions first
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A mining company wants to reduce its carbon footprint. Which approach is most effective in reducing the environmental impact of its mining operations?

   • AUse older, less efficient hardware to reduce the initial manufacturing impact.
   • BIncrease the number of mining rigs to distribute the energy consumption across more devices.
   • CMine only during off-peak hours when electricity is cheaper.
   • DUse renewable energy sources such as hydroelectric or solar power to run the mining hardware.
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   What is a primary characteristic of GPU-based mining compared to CPU-based mining?

   • AGPUs are only used for mining and cannot perform other tasks
   • BGPUs are less expensive than CPUs for the same hash rate
   • CGPUs consume less power than CPUs when mining
   • DGPUs can perform many parallel calculations, making them more efficient for mining
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   What is a potential negative effect of mining centralization on a blockchain network?

   • AIt increases the network's resistance to censorship
   • BIt could allow a small group to manipulate transaction history
   • CIt reduces the risk of a 51% attack
   • DIt makes the network more decentralized by reducing the number of participants
   Reveal Solution Discussion Select an answer first