Mining Techniques BDC Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   If the total hash rate of a PoW network increases significantly, what happens to the mining difficulty at the next adjustment?

   • AIt is adjusted based on the market price of the cryptocurrency
   • BIt decreases to make blocks easier to find
   • CIt remains the same because difficulty is fixed
   • DIt increases to make blocks harder to find
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   What property of a cryptographic hash function is most directly exploited by the Proof of Work puzzle?

   • AAvalanche effect – a small change in input drastically changes the output
   • BPreimage resistance – it is infeasible to find an input that hashes to a given output
   • CCollision resistance – it is hard to find two different inputs with the same hash
   • DDeterminism – the same input always produces the same output
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A small mining operation with 10 GPUs wants to join a mining pool. They are comparing a large pool with a high total hash rate and a smaller pool with lower hash rate but a lower fee. What is the primary trade-off they should consider?

   • ASmaller pools have lower variance in payouts, making income more predictable.
   • BLarger pools provide more consistent payouts but charge higher fees, while smaller pools offer less frequent but potentially larger payouts after fees.
   • CThe pool's total hash rate does not affect payout frequency, only the reward distribution method.
   • DLarger pools pay higher rewards per block, so they are always more profitable.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   In a typical mining pool, how are rewards distributed among participants?

   • AOnly to the miner who found the valid block
   • BBased on the number of transactions each miner submitted
   • CEqually to all members regardless of contribution
   • DProportionally to the amount of hashing power each miner contributed
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A developer is choosing between PoS and PoA for a new permissioned blockchain where all validators are known and must be approved by a governing body. Which mechanism is more appropriate?

   • APoS, because it allows any stakeholder to become a validator.
   • BBoth are equally appropriate because they are both energy-efficient.
   • CPoS, because it is more decentralized.
   • DPoA, because it directly maps to the requirement of known and approved validators.
   Reveal Solution Discussion Select an answer first