Which consensus model requires participants to solve computationally intensive puzzles to propose new blocks?

Practical Byzantine Fault Tolerance (PBFT)

Delegated Proof of Stake (DPoS)

A bank is considering moving its internal payment system from a centralized database to a permissioned blockchain. The bank's primary goal is to reduce the risk of a single point of failure while maintaining regulatory oversight. Which consensus model best balances these needs?

A centralized database with a single administrator

PoW with a public validator set

PBFT with a fixed set of known validators

A DeFi lending protocol is considering switching from a permissioned consensus model to a permissionless one to increase decentralization. What is the primary trade-off they will face?

Greater censorship resistance but slower finality

Simpler governance but higher energy use

Easier regulatory compliance but less trust

Higher throughput but lower security

A blockchain-based remittance service is experiencing high latency because the PoW consensus requires multiple confirmations. The team wants to reduce latency while maintaining security. Which consensus model change would be most effective?

Use a centralized database instead

Switch to a PoS model with deterministic finality

EC-CouncilBlockchain Fintech Certification

Domain 2Objective 3

Consensus Models in Financial Systems BFC Practice Questions (Page 1)

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

35questions here

7free pages

5concepts

Questions 1–5

1foundation · easy
Which consensus model requires participants to solve computationally intensive puzzles to propose new blocks?
Select an answer first
2expert · hard
A bank is considering moving its internal payment system from a centralized database to a permissioned blockchain. The bank's primary goal is to reduce the risk of a single point of failure while maintaining regulatory oversight. Which consensus model best balances these needs?
Select an answer first
3application · medium
A consortium of banks uses a permissioned blockchain with PBFT. A new member is added, increasing the number of nodes from 10 to 13. What is the new maximum number of faulty nodes the network can tolerate?
Select an answer first
4application · medium
A DeFi lending protocol is considering switching from a permissioned consensus model to a permissionless one to increase decentralization. What is the primary trade-off they will face?
Select an answer first
5application · medium
A blockchain-based remittance service is experiencing high latency because the PoW consensus requires multiple confirmations. The team wants to reduce latency while maintaining security. Which consensus model change would be most effective?
Select an answer first

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