Proof of Work (PoW) and Its Variations BDC Practice Questions (Page 8)

Questions 36–37

1. 36expert · hard

   A developer is building a blockchain for a financial application that requires finality of transactions. They are comparing PoW and PoS. Which statement accurately describes the trade-off between the two?

   • ABoth PoW and PoS provide the same level of finality, so the choice does not matter.
   • BPoW provides probabilistic finality, meaning transactions become more secure as more blocks are added, while PoS can offer deterministic finality through mechanisms like checkpoints or slashing.
   • CPoS provides probabilistic finality, and PoW provides deterministic finality.
   • DPoW provides deterministic finality because once a block is mined, it is permanently confirmed.
   Reveal Solution Discussion Select an answer first
2. 37foundation · easy

   What is the purpose of the difficulty adjustment in Bitcoin's Proof of Work?

   • ATo keep the average block time around 10 minutes despite changes in network hash rate.
   • BTo prevent miners from using specialized hardware.
   • CTo ensure that only a fixed number of transactions are included in each block.
   • DTo increase the block reward over time.
   Reveal Solution Discussion Select an answer first