Challenges in Blockchain Consensus Mechanisms BFC Practice Questions (Page 7)

Questions 31–35

1. 31expert · hard

   A consortium of banks is designing a blockchain for interbank settlements. They need to choose between a permissioned PBFT network with 10 validators and a public PoS network with thousands of validators. The banks prioritize regulatory compliance and transaction finality. Which network is more suitable?

   • APublic PoS
   • BPermissioned PBFT
   • CNeither is suitable
   • DBoth are equally suitable
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   A bank is planning to use a public blockchain for a pilot project. The compliance officer is concerned that the bank cannot identify the parties involved in transactions, which would violate know-your-customer (KYC) regulations. Which consensus-related feature would best address this concern?

   • AUsing a public blockchain with pseudonymous addresses
   • BUsing a Proof of Work consensus with high hash rate
   • CUsing a Proof of Stake consensus with a large validator set
   • DUsing a permissioned blockchain with identity verification for all participants
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   Which regulatory challenge is particularly associated with permissionless consensus mechanisms like Proof of Work or Proof of Stake?

   • AThe need to register the blockchain protocol with a securities regulator before it can be used.
   • BThe obligation to store all transaction data on servers located within the country of operation.
   • CThe requirement to obtain a banking license to operate a node in the network.
   • DThe ability to identify and hold accountable the parties responsible for network operations and transactions.
   Reveal Solution Discussion Select an answer first
5. 34foundation · easy

   Which attack involves a miner or mining pool deliberately withholding mined blocks to gain a competitive advantage and increase their share of rewards?

   • A51% attack
   • BSelfish mining
   • CSybil attack
   • DReplay attack
   Reveal Solution Discussion Select an answer first
6. 35application · medium

   A stablecoin consortium is planning a protocol upgrade that changes the consensus rules from PoW to PoS. They are concerned about community disagreement leading to a split. What is the most effective way to manage this transition and minimize the risk of a contentious hard fork?

   • ALet each node operator decide independently without coordination
   • BForce the upgrade by having the core developers unilaterally change the code
   • CAnnounce the upgrade on social media and activate it immediately
   • DPropose the upgrade through an on-chain governance vote with a supermajority threshold and a defined activation period
   Reveal Solution Discussion Select an answer first