If the market price of a cryptocurrency drops significantly, what is the likely impact on mining profitability, assuming all other factors remain constant?

Profitability remains unchanged because the block reward is fixed in coin amount

Profitability decreases because the fiat value of the block reward falls

Profitability increases because difficulty automatically decreases

Profitability increases because the block reward is worth more in fiat

A consortium of banks wants to deploy a permissioned blockchain for interbank settlements. They prioritize transaction finality, low energy consumption, and the ability to revoke validators that misbehave. Which consensus mechanism best fits these requirements?

Delegated Proof of Stake (DPoS) because it is fully decentralized and permissionless.

Proof of Stake (PoS) because it is energy-efficient and allows anyone to stake.

Proof of Work (PoW) because it is the most battle-tested and secure.

Proof of Authority (PoA) because it uses approved validators that can be rotated or removed.

In a Proof of Work (PoW) blockchain, what is the primary purpose of requiring miners to solve a cryptographic puzzle?

To make it computationally expensive to add a new block, thereby deterring malicious actors

To encrypt the transactions stored in the block

To compress the block data so it takes up less storage space

To verify the digital signatures of all transactions in the block

A developer is choosing a consensus mechanism for a new public blockchain that must be energy-efficient and resistant to centralization. They are comparing PoS and DPoS. What is a key trade-off they should consider?

PoS allows any stakeholder to validate, while DPoS concentrates power in a small set of elected delegates.

PoS is more resistant to 51% attacks than DPoS.

DPoS is more energy-efficient than PoS.

DPoS requires validators to lock up their coins, while PoS does not.

EC-CouncilBlockchain Developer Certification

Domain 4Objective 2

Mining Techniques BDC Practice Questions (Page 4)

Part of the Cryptomining, Tokenization, and Digital Assets domain, which makes up ~10% of our current practice bank.

48questions here

10free pages

11concepts

Questions 16–20

16foundation · easy
If the market price of a cryptocurrency drops significantly, what is the likely impact on mining profitability, assuming all other factors remain constant?
Select an answer first
17expert · hard
A consortium of banks wants to deploy a permissioned blockchain for interbank settlements. They prioritize transaction finality, low energy consumption, and the ability to revoke validators that misbehave. Which consensus mechanism best fits these requirements?
Select an answer first
18foundation · easy
In a Proof of Work (PoW) blockchain, what is the primary purpose of requiring miners to solve a cryptographic puzzle?
Select an answer first
19application · medium
A developer is choosing a consensus mechanism for a new public blockchain that must be energy-efficient and resistant to centralization. They are comparing PoS and DPoS. What is a key trade-off they should consider?
Select an answer first
20application · medium
A cryptocurrency has a block reward of 50 coins and a halving event every 4 years. The current price is $100 per coin. After the next halving, assuming the price stays the same, what is the block reward in dollar terms?
Select an answer first

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