CBCP Cryptocurrency and Digital Assets 2

Question 1

Which consensus mechanism does Ethereum currently use after 'The Merge' in 2022?

Accepted Answer

Proof of Stake

Answer

Ethereum transitioned from Proof of Work to Proof of Stake via 'The Merge' in September 2022, reducing energy consumption by ~99.95%.

Question 2

What is a 'hard fork' in the context of cryptocurrency?

Accepted Answer

A protocol change that is not backward compatible, creating a permanent divergence

Answer

A hard fork is a permanent, backward-incompatible protocol change that splits the blockchain into two separate chains if not all nodes upgrade.

Question 3

What is the primary purpose of a cryptocurrency 'mempool'?

Accepted Answer

A temporary holding area for unconfirmed transactions awaiting inclusion in a block

Answer

The mempool (memory pool) is a node's staging area for valid but unconfirmed transactions, ordered by fee priority for miners/validators.

Question 4

Which of the following best describes a 'stablecoin'?

Accepted Answer

A digital asset pegged to a stable reference asset such as fiat currency or commodities

Answer

Stablecoins maintain a stable value by pegging to reference assets like USD, gold, or through algorithmic mechanisms.

Question 5

What is 'slippage' in the context of cryptocurrency trading?

Accepted Answer

The difference between the expected trade price and the actual executed price

Answer

Slippage is the gap between expected and actual execution prices, typically caused by low liquidity or large order sizes relative to the market.

CBCP - Certified Blockchain Professional Practice Test