Blockchain Consensus Mechanisms BFC Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A central bank is designing a retail Central Bank Digital Currency (CBDC) that must process peak loads of 50,000 transactions per second during holiday shopping. The network must be permissioned, with the central bank as the final authority, but it must also provide deterministic finality so that merchants can trust payments instantly. Which consensus approach is most appropriate?

   • AProof of Work with a high difficulty target
   • BPractical Byzantine Fault Tolerance with a centralized ordering service
   • CDelegated Proof of Stake with a small validator set
   • DProof of Authority with rotating leaders
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   How do consensus mechanisms contribute to the integrity of financial transactions on a blockchain?

   • ABy encrypting transaction data so that only the sender and receiver can view it
   • BBy allowing a central bank to audit all transactions in real time
   • CBy storing transaction data in a separate database for each node
   • DBy ensuring that all nodes agree on the validity and order of transactions, preventing double-spending
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   Which statement best describes the role of consensus in a blockchain network?

   • AIt prevents any node from ever making a mistake
   • BIt speeds up transaction processing by allowing nodes to process transactions independently
   • CIt ensures that all nodes have identical copies of the ledger at all times
   • DIt allows the network to function without a central authority by achieving agreement on the ledger state
   Reveal Solution Discussion Select an answer first
5. 4application · medium

   A group of insurance companies is using a permissioned blockchain to share claims data. They need to ensure that once a claim is recorded, it cannot be altered by any party, including the company that submitted it. Which property of the consensus mechanism provides this guarantee?

   • AImmutability, which is a result of cryptographic hashing and consensus finality
   • BFault tolerance, because it handles faulty nodes
   • CDecentralization, because no single party controls the data
   • DLiveness, because the network continues to operate
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   In the context of blockchain consensus, what does the property of 'safety' refer to?

   • AThe resistance of the network to a 51% attack
   • BThe guarantee that all honest nodes will eventually agree on the same valid history
   • CThe speed at which transactions are confirmed
   • DThe ability of the network to continue producing new blocks even if some nodes fail
   Reveal Solution Discussion Select an answer first