CCE Cryptocurrency Mining Principles 3

Question 1

What metric measures the total computational power of a cryptocurrency network?

Accepted Answer

Hash rate

Answer

Hash rate (measured in TH/s, PH/s, or EH/s) represents the total number of hash computations performed per second across the network.

Question 2

In a mining pool, what does 'PPS' (Pay Per Share) mean?

Accepted Answer

Miners receive a fixed payout for each valid share submitted

Answer

PPS pays miners a set amount for every share submitted, transferring block-finding risk to the pool operator.

Question 3

What is the 'target' in Bitcoin's Proof of Work system?

Accepted Answer

A 256-bit number that a valid block hash must be less than or equal to

Answer

The target is a threshold value; a block is valid only if its SHA-256d hash is numerically below this target.

Question 4

Which type of mining hardware offers the highest energy efficiency for Bitcoin mining today?

Accepted Answer

ASICs

Answer

ASICs (Application-Specific Integrated Circuits) are custom chips built solely for mining, offering orders of magnitude better efficiency than general-purpose hardware.

Question 5

What is 'merge mining' (Auxiliary Proof of Work)?

Accepted Answer

Simultaneously mining two compatible blockchains with the same work

Answer

Merge mining allows miners to mine a parent chain and one or more auxiliary chains simultaneously without extra computational effort.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Cryptocurrency Mining Principles 3