Which of the following is a major disadvantage of Proof of Work (PoW) in financial systems?

It cannot achieve finality because blocks are never confirmed

It requires a central authority to validate transactions

It has high energy consumption due to intensive computational competition

It allows only a small group of pre-selected validators to create blocks

What is the core principle of Practical Byzantine Fault Tolerance (PBFT)?

Nodes compete to solve a mathematical puzzle

Nodes vote for delegates to produce blocks

Nodes exchange messages in multiple phases to reach agreement even if some nodes are faulty

Nodes rely on a trusted central server to order transactions

In Proof of Stake (PoS), how is a validator typically chosen to propose a new block?

By the order in which nodes joined the network

By a central committee that votes on the most qualified candidate

By solving a computationally intensive puzzle

By a deterministic process that weighs the validator's stake, often with randomization

A government agency is deploying a permissioned blockchain for inter-departmental record sharing. The network has only 10 known nodes, and the agency requires immediate transaction finality and resistance to a few faulty or malicious nodes. Which consensus mechanism is most appropriate?

Delegated Proof of Stake (DPoS)

Practical Byzantine Fault Tolerance (PBFT)

A financial institution wants a consensus mechanism that provides high transaction throughput and low energy consumption, but is willing to accept a smaller set of validators. Which mechanism is most aligned with these priorities?

Delegated Proof of Stake (DPoS)

Practical Byzantine Fault Tolerance (PBFT)

EC-CouncilBlockchain Fintech Certification

Domain 2Objective 2

Types of Consensus Mechanisms BFC Practice Questions (Page 1)

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

23questions here

5free pages

8concepts

Questions 1–5

1foundation · easy
Which of the following is a major disadvantage of Proof of Work (PoW) in financial systems?
Select an answer first
2foundation · easy
What is the core principle of Practical Byzantine Fault Tolerance (PBFT)?
Select an answer first
3foundation · easy
In Proof of Stake (PoS), how is a validator typically chosen to propose a new block?
Select an answer first
4application · medium
A government agency is deploying a permissioned blockchain for inter-departmental record sharing. The network has only 10 known nodes, and the agency requires immediate transaction finality and resistance to a few faulty or malicious nodes. Which consensus mechanism is most appropriate?
Select an answer first
5foundation · easy
A financial institution wants a consensus mechanism that provides high transaction throughput and low energy consumption, but is willing to accept a smaller set of validators. Which mechanism is most aligned with these priorities?
Select an answer first

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