A blockchain-based remittance service is experiencing low transaction throughput and high latency. They are using a Proof of Work (PoW) consensus mechanism. They are considering switching to a Delegated Proof of Stake (DPoS) mechanism. What is the most likely trade-off they will face?

Decreased energy consumption but increased latency

Increased throughput but reduced decentralization

Improved governance but reduced scalability

Increased security but reduced throughput

Which consensus mechanism is most suitable for a private financial network that requires high transaction throughput and immediate finality, but where validators are known and trusted?

Practical Byzantine Fault Tolerance (PBFT)

Delegated Proof of Stake (DPoS)

What is a 51% attack in a Proof of Work blockchain?

An attacker exploits a vulnerability in the smart contract code to steal funds from users.

An attacker sends a large number of transactions to overwhelm the network and cause denial of service.

An attacker gains control of more than half of the network's mining hash rate, allowing them to prevent new transactions from being confirmed and potentially reverse recently confirmed transactions.

An attacker creates multiple fake identities to gain a disproportionate influence in the consensus process.

A blockchain project is planning a hard fork to upgrade its consensus mechanism. The team is concerned about the risk of a chain split and wants to minimize disruption. Which approach is most likely to achieve a smooth upgrade?

Rely on a single developer to implement the change

Coordinate with all node operators and stakeholders

Announce the fork only after implementation

Force the upgrade without community input

A publicly traded company is considering using a Proof of Work blockchain for its supply chain finance platform. The board is concerned about the environmental impact and regulatory scrutiny. Which alternative consensus mechanism would best address these concerns while maintaining a reasonable level of security?

Proof of Work with renewable energy sources

EC-CouncilBlockchain Fintech Certification

Domain 2Objective 6

Challenges in Blockchain Consensus Mechanisms BFC Practice Questions (Page 2)

Part of the Consensus Mechanisms for Financial Systems domain, which makes up ~11% of our current practice bank.

41questions here

9free pages

8concepts

Questions 6–10

6expert · hard
A blockchain-based remittance service is experiencing low transaction throughput and high latency. They are using a Proof of Work (PoW) consensus mechanism. They are considering switching to a Delegated Proof of Stake (DPoS) mechanism. What is the most likely trade-off they will face?
Select an answer first
7foundation · easy
Which consensus mechanism is most suitable for a private financial network that requires high transaction throughput and immediate finality, but where validators are known and trusted?
Select an answer first
8foundation · easy
What is a 51% attack in a Proof of Work blockchain?
Select an answer first
9expert · hard
A blockchain project is planning a hard fork to upgrade its consensus mechanism. The team is concerned about the risk of a chain split and wants to minimize disruption. Which approach is most likely to achieve a smooth upgrade?
Select an answer first
10application · medium
A publicly traded company is considering using a Proof of Work blockchain for its supply chain finance platform. The board is concerned about the environmental impact and regulatory scrutiny. Which alternative consensus mechanism would best address these concerns while maintaining a reasonable level of security?
Select an answer first

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