Mining Techniques BDC Practice Questions (Page 8)

Questions 36–40

1. 36expert · hard

   A blockchain developer is comparing PoW and PoS for a new cryptocurrency that aims to be energy-efficient and resistant to centralization. They are concerned about the 'rich get richer' problem in PoS. Which approach best addresses this concern while still using PoS?

   • AUse DPoS where token holders vote for delegates, ensuring equal representation.
   • BUse PoA with a fixed set of validators to avoid stake-based inequality.
   • CUse a PoS variant with randomized validator selection weighted by stake, but include mechanisms like coin age or slashing to discourage hoarding.
   • DUse pure PoW because it is inherently more decentralized than any PoS variant.
   Reveal Solution Discussion Select an answer first
2. 37foundation · easy

   What is the primary reason individual miners join a mining pool?

   • ATo reduce the difficulty of the cryptographic puzzle
   • BTo increase the block reward amount
   • CTo combine hashing power and receive more consistent, smaller rewards
   • DTo avoid paying transaction fees
   Reveal Solution Discussion Select an answer first
4. 38application · medium

   A miner is building a block and notices that the mempool contains a transaction with a very high fee but also a large size. They also see several smaller transactions with lower fees. What should the miner do to maximize fee revenue?

   • ACompare the fee-per-byte of all transactions and include those with the highest fee-per-byte until the block is full.
   • BInclude all transactions in the mempool to maximize the number of transactions.
   • CAlways include the high-fee transaction first, regardless of size.
   • DInclude only the small transactions because they are easier to validate.
   Reveal Solution Discussion Select an answer first
5. 39foundation · easy

   Why do transaction fees become increasingly important for Bitcoin miners as block rewards halve?

   • ABecause miners are required to include more transactions per block
   • BBecause transaction fees are also halved
   • CBecause the block reward is reduced, so fees make up a larger portion of total miner compensation
   • DBecause the cost of electricity decreases over time
   Reveal Solution Discussion Select an answer first
6. 40application · medium

   A mining farm is considering upgrading from GPUs to ASICs for a SHA-256 coin. They have a contract for cheap electricity. What is the most important factor to evaluate before making the switch?

   • AThe ASIC's ability to mine multiple algorithms.
   • BThe ASIC's hash rate and energy efficiency compared to the current GPU setup.
   • CThe ASIC's compatibility with the existing GPU mining software.
   • DThe ASIC's resale value in case mining becomes unprofitable.
   Reveal Solution Discussion Select an answer first