Mining Techniques BDC Practice Questions (Page 3)

Questions 11–15

1. 11expert · hard

   A miner is considering two mining setups. Setup A: an ASIC that costs $2,000, consumes 1,500 W, and has a hash rate of 50 TH/s. Setup B: a GPU rig that costs $3,000, consumes 1,000 W, and has a hash rate of 30 TH/s. Electricity costs $0.10/kWh. The coin's current price is $50, and the block reward is 6.25 coins. Which setup is more profitable over a 6-month period, assuming no difficulty changes?

   • ABoth setups are equally profitable.
   • BProfitability cannot be determined without knowing the network difficulty and the miner's share of the block reward.
   • CSetup B, because it consumes less power.
   • DSetup A, because it has a higher hash rate.
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A solo miner with a small hash rate is considering joining a mining pool. What is the primary benefit of joining a pool?

   • AIt guarantees a higher total reward over time.
   • BIt increases the miner's hash rate.
   • CIt eliminates the need to pay transaction fees.
   • DIt provides more consistent payouts by reducing the variance of finding blocks.
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A PoW network has a target block time of 2 minutes. Over the past week, the network hash rate has doubled. What is the immediate effect on block time before the next difficulty adjustment?

   • ABlock time will become unpredictable and vary wildly.
   • BBlock time will increase to 4 minutes.
   • CBlock time will decrease to approximately 1 minute.
   • DBlock time will remain at 2 minutes because the difficulty adjusts automatically.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A startup is evaluating whether to mine a PoW cryptocurrency. They have access to cheap electricity but limited upfront capital. They are considering buying a batch of used GPUs versus a single high-end ASIC. Which factor should most strongly influence their decision?

   • AThe GPU rig will consume less total electricity than the ASIC.
   • BThe ASIC will retain its resale value better than GPUs.
   • CThe GPU rig's flexibility to switch algorithms provides better risk mitigation if the coin's profitability drops.
   • DThe ASIC's higher hash rate per watt will always yield better profitability.
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A blockchain network uses PoW. A developer is explaining to a client how PoW secures the network. Which explanation is most accurate?

   • APoW requires validators to lock up coins, which they lose if they misbehave.
   • BPoW makes it computationally expensive to produce a valid block, so attacking the network requires controlling a majority of hash power.
   • CPoW uses a trusted central authority to validate blocks.
   • DPoW encrypts all transactions, making them unreadable to attackers.
   Reveal Solution Discussion Select an answer first