CCE Cryptocurrency Mining Principles 2

Question 1

What is the primary purpose of the 'nonce' field in a Bitcoin block header during mining?

Accepted Answer

To iterate through values until a valid hash is found

Answer

To store the miner's wallet address

Answer

To record the block timestamp

Answer

To encode transaction fees

Question 2

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

Accepted Answer

Proof of Stake

Answer

Proof of Work

Answer

Delegated Proof of Stake

Answer

Proof of Authority

Question 3

In Bitcoin mining, what happens to the block reward approximately every 210,000 blocks?

Accepted Answer

It halves

Answer

It doubles

Answer

It remains constant

Answer

It is distributed to all nodes

Question 4

What does 'orphan block' (stale block) refer to in cryptocurrency mining?

Accepted Answer

A valid block that is not included in the longest chain

Answer

A block with no transactions

Answer

A block mined by an unknown entity

Answer

A block with corrupted data

Question 5

What is 'selfish mining' in the context of cryptocurrency networks?

Accepted Answer

Withholding discovered blocks to gain competitive advantage

Answer

Mining without contributing to a pool

Answer

Mining multiple cryptocurrencies simultaneously

Answer

Using excessive electricity for mining

Question 6

Which algorithm does Litecoin use for its Proof of Work mining?

Accepted Answer

Scrypt

Answer

SHA-256

Answer

Ethash

Answer

X11

Question 7

What is the 'extranonce' used for in Bitcoin mining pools?

Accepted Answer

Additional nonce space to expand the search range for pool workers

Answer

Extra transaction fees paid to the pool

Answer

A secondary wallet address for pool payouts

Answer

An encryption key for pool communications