Practice Test Geeks(CCE) Certified Cryptocurrency Expert Practice Test
← All CCE Flashcard Decks

Cryptocurrency Mining Principles Flashcards

7 cards from real CCE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Cryptocurrency Mining Principles flashcards as text

  1. What is a '51% attack' and how does mining centralization enable it?

    Answer: When an entity controls majority hash rate and can double-spend or reorg the chain

    Controlling over 50% of network hash rate allows an attacker to reverse recent transactions and perform double-spends on the blockchain.

  2. Which hashing algorithm does Bitcoin use for its Proof of Work mining?

    Answer: SHA-256d (double SHA-256)

    Bitcoin applies SHA-256 twice (double SHA-256) to block headers during the mining process.

  3. What is 'Proof of Capacity' (PoC) mining and which storage medium does it use?

    Answer: Mining where pre-computed plot files stored on hard drives determine block rights

    PoC (used by coins like Chia/Burst) pre-computes hash solutions (plots) on HDDs and miners scan them to find valid block solutions.

  4. What is 'FPGA mining' and how does it differ from ASIC mining?

    Answer: FPGAs are reprogrammable chips offering flexibility; ASICs are fixed-function and more efficient for specific algorithms

    FPGAs can be reprogrammed for different mining algorithms, whereas ASICs are optimized for a single algorithm and cannot be repurposed.

  5. What does 'PROP' (Proportional) payout method mean in mining pools?

    Answer: Miners receive rewards proportional to their shares submitted in the round when a block is found

    Under PROP, the block reward is split among miners based on the fraction of total shares each submitted during that round.

  6. What is 'RandomX,' and which major cryptocurrency uses it?

    Answer: A CPU-optimized Proof of Work algorithm designed to resist ASICs; used by Monero

    RandomX uses random code execution and memory-hard techniques to favor general-purpose CPUs over specialized ASICs, and Monero adopted it in 2019.

  7. What is the 'mempool' and how does it influence miner behavior?

    Answer: A waiting area of unconfirmed transactions from which miners select based on fees

    The mempool (memory pool) holds pending transactions, and miners typically prioritize high-fee transactions to maximize block reward earnings.