Cryptocurrency Mining and Transaction Lifecycle 4

Question 1

What is 'Replace-By-Fee' (RBF) in Bitcoin?

Accepted Answer

A protocol allowing an unconfirmed transaction to be replaced by a new version with a higher fee

Answer

RBF (BIP 125) lets a sender broadcast a replacement transaction with a higher fee to incentivize miners to confirm it faster, before the original is mined.

Question 2

In Ethereum's proof-of-stake, what do validators stake to participate in block creation?

Accepted Answer

32 ETH as a deposit

Answer

Ethereum validators must stake exactly 32 ETH to activate a validator node and participate in block proposal and attestation.

Question 3

What is a 'block reward subsidy' in Bitcoin?

Accepted Answer

The fixed amount of new Bitcoin created and given to the miner per block

Answer

The block subsidy is the newly minted Bitcoin awarded to the miner who successfully adds a block; it halves approximately every four years.

Question 4

What is 'transaction malleability' in the context of Bitcoin?

Accepted Answer

The ability to alter a transaction's ID without invalidating its signature, before confirmation

Answer

Transaction malleability allowed the transaction ID (txid) to be changed by modifying the unlocking script before confirmation, a flaw addressed by SegWit.

Question 5

What does 'hashrate' measure in cryptocurrency mining?

Accepted Answer

The speed at which a miner performs hash computations per second

Answer

Hashrate measures how many hash calculations a mining device or network performs per second, indicating mining power and network security.

Cryptocurrency Practice Test

Cryptocurrency Practice Test

Cryptocurrency Mining and Transaction Lifecycle 4