Types of Consensus Mechanisms BFC Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   When selecting a consensus mechanism for a financial application, which trade-off is most directly associated with Proof of Work (PoW)?

   • AHigh scalability and energy efficiency at the cost of centralization
   • BHigh decentralization and security at the cost of low scalability and high energy use
   • CComplete privacy and anonymity at the cost of regulatory compliance
   • DLow latency and high throughput at the cost of low security
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   Which of the following is a correct categorization of common consensus mechanisms?

   • ACryptographic mechanisms (e.g., SHA-256) and network mechanisms (e.g., TCP/IP)
   • BStorage-based mechanisms (e.g., PoS) and computation-based mechanisms (e.g., PBFT)
   • CCentralized mechanisms (e.g., PoW) and decentralized mechanisms (e.g., Raft)
   • DProof-based mechanisms (e.g., PoW, PoS) and voting-based mechanisms (e.g., PBFT, Raft)
   Reveal Solution Discussion Select an answer first
4. 8expert · hard

   A central bank is designing a digital currency for retail payments. The system must handle millions of transactions per day with immediate finality, but it also must be resilient to a small number of compromised nodes. The bank is willing to sacrifice decentralization for performance. Which consensus mechanism is most appropriate?

   • ADelegated Proof of Stake (DPoS)
   • BProof of Work (PoW)
   • CProof of Stake (PoS)
   • DPractical Byzantine Fault Tolerance (PBFT)
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   What is a key limitation of Practical Byzantine Fault Tolerance (PBFT) in large-scale public blockchains?

   • AIt does not tolerate any faulty nodes
   • BIt cannot provide finality for transactions
   • CIt requires a massive amount of computational power
   • DIt has high communication overhead because every node must communicate with every other node
   Reveal Solution Discussion Select an answer first
6. 10foundation · easy

   What is the primary role of a consensus mechanism in a distributed blockchain network?

   • ATo enable all nodes to agree on a single, consistent state of the ledger
   • BTo store transaction data in a centralized database for faster retrieval
   • CTo generate private keys for users in the network
   • DTo encrypt all transactions before they are added to the ledger
   Reveal Solution Discussion Select an answer first