Which consensus mechanism is known for high transaction throughput and low latency but requires a known set of validators, making it suitable for permissioned networks?

Practical Byzantine Fault Tolerance (PBFT)

Delegated Proof of Stake (DPoS)

A startup is building a blockchain for a decentralized exchange (DEX) and wants to minimize the risk of a 51% attack while also keeping transaction costs low. They are considering PoW and PoS. Which factor is most important in their decision?

The cost of acquiring a majority of hashing power or staked tokens

The number of nodes in the network

A blockchain project is considering a move from PoW to PoS to reduce energy consumption. However, they are concerned about the 'nothing at stake' problem and the potential for validators to vote on multiple forks. Which mechanism or feature would best mitigate this concern?

Requiring validators to lock up tokens for a short period

Slashing conditions that penalize validators who vote on conflicting blocks

A large financial exchange is designing a blockchain for post-trade settlement. They have two competing requirements: (1) transactions must be final within seconds to reduce counterparty risk, and (2) the network must remain operational even if several nodes are compromised. They are evaluating PBFT and a variant of PoS with slashing. Which approach best satisfies both requirements?

PoS with slashing and a large validator set

PBFT with a permissioned validator set

DPoS with a small set of elected delegates

A regulatory body is evaluating a blockchain proposal that uses PoS. They are concerned about the potential for a 'long-range attack' where an attacker creates a competing chain from the genesis block. Which feature of PoS is most effective in mitigating this risk?

Checkpointing at regular intervals

Requiring validators to run on high-performance hardware

EC-CouncilBlockchain Fintech Certification

Domain 2Objective 5

Choosing the Right Consensus for Blockchain Systems BFC Practice Questions (Page 2)

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

33questions here

7free pages

5concepts

Questions 6–10

6foundation · easy
Which consensus mechanism is known for high transaction throughput and low latency but requires a known set of validators, making it suitable for permissioned networks?
Select an answer first
7application · medium
A startup is building a blockchain for a decentralized exchange (DEX) and wants to minimize the risk of a 51% attack while also keeping transaction costs low. They are considering PoW and PoS. Which factor is most important in their decision?
Select an answer first
8expert · hard
A blockchain project is considering a move from PoW to PoS to reduce energy consumption. However, they are concerned about the 'nothing at stake' problem and the potential for validators to vote on multiple forks. Which mechanism or feature would best mitigate this concern?
Select an answer first
9expert · hard
A large financial exchange is designing a blockchain for post-trade settlement. They have two competing requirements: (1) transactions must be final within seconds to reduce counterparty risk, and (2) the network must remain operational even if several nodes are compromised. They are evaluating PBFT and a variant of PoS with slashing. Which approach best satisfies both requirements?
Select an answer first
10expert · hard
A regulatory body is evaluating a blockchain proposal that uses PoS. They are concerned about the potential for a 'long-range attack' where an attacker creates a competing chain from the genesis block. Which feature of PoS is most effective in mitigating this risk?
Select an answer first

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