C4 Mining & Consensus Mechanisms 2

Question 1

In Proof of Stake, what primarily determines a validator's probability of being chosen to propose a new block?

Accepted Answer

The amount of cryptocurrency staked as collateral

Answer

In PoS, validators are selected with probability proportional to their staked amount, replacing the computational power competition of Proof of Work.

Question 2

What is 'slashing' in Proof of Stake networks?

Accepted Answer

Penalizing validators by destroying part of their stake for malicious or dishonest behavior

Answer

Slashing is a penalty mechanism that destroys a portion of a misbehaving validator's staked cryptocurrency, deterring double-signing, equivocation, and other attacks.

Question 3

What is Delegated Proof of Stake (DPoS)?

Accepted Answer

A consensus mechanism where token holders vote for delegates who validate transactions on their behalf

Answer

DPoS allows token holders to elect a limited set of delegates (block producers) who are responsible for validating transactions, improving throughput at the cost of some decentralization.

Question 4

Which foundational computer science problem does blockchain consensus primarily aim to solve?

Accepted Answer

The Byzantine Generals Problem

Answer

Blockchain consensus mechanisms were designed to solve the Byzantine Generals Problem — achieving reliable agreement among distributed parties who may be unreliable or actively malicious.

Question 5

What is a 51% attack?

Accepted Answer

When a single entity controls over half the network's consensus power and can manipulate recent transactions

Answer

A 51% attack occurs when an entity gains majority control of a network's consensus power, enabling double-spending and selective transaction censorship.

(C4) CryptoCurrency Certification Consortium Practice Test

(C4) CryptoCurrency Certification Consortium Practice Test

C4 Mining & Consensus Mechanisms 2