CBP Bitcoin Mining and Consensus Mechanisms 1 — Questions and Answers
Question 1: What is the primary role of Bitcoin miners in the network?
- To create new Bitcoin addresses
- To validate transactions and add them to the blockchain (Correct answer)
- To regulate Bitcoin prices
- To provide liquidity for Bitcoin exchanges
Correct answer: To validate transactions and add them to the blockchain
Bitcoin miners validate transactions and secure the network by solving complex mathematical problems through the proof-of-work mechanism.
Question 2: Which consensus mechanism does Bitcoin use?
- Proof-of-stake (PoS)
- Proof-of-work (PoW) (Correct answer)
- Delegated proof-of-stake (DPoS)
- Byzantine fault tolerance (BFT)
Correct answer: Proof-of-work (PoW)
Bitcoin relies on the proof-of-work (PoW) consensus mechanism, requiring miners to solve complex mathematical puzzles to validate transactions.
Question 3: What happens when a Bitcoin block is successfully mined?
- The miner receives transaction fees only
- The miner is rewarded with new Bitcoin and transaction fees (Correct answer)
- The network resets
- All pending transactions are canceled
Correct answer: The miner is rewarded with new Bitcoin and transaction fees
When a block is mined, it is added to the blockchain, and the miner is rewarded with newly minted Bitcoin plus transaction fees.
Question 4: Why does Bitcoin mining become more difficult over time?
- More miners make it easier to mine Bitcoin
- Mining difficulty adjusts to keep block times consistent (Correct answer)
- The Bitcoin price affects mining difficulty
- Transaction fees increase difficulty
Correct answer: Mining difficulty adjusts to keep block times consistent
Bitcoin's mining difficulty adjusts automatically to maintain a consistent block creation time of approximately 10 minutes.
Question 5: What is the purpose of Bitcoin's block reward halving?
- To increase miner earnings
- To reduce the rate of new Bitcoin issuance over time (Correct answer)
- To increase transaction fees
- To make transactions faster
Correct answer: To reduce the rate of new Bitcoin issuance over time
Bitcoin halving reduces the number of new bitcoins issued per block, ensuring controlled inflation and scarcity over time.
Question 6: Which of the following best describes the 51% attack in Bitcoin?
- When transaction fees reach 51% of miner rewards
- When one entity controls over 50% of Bitcoin’s mining power (Correct answer)
- When 51% of all Bitcoin is lost
- When Bitcoin supply reaches 51 million
Correct answer: When one entity controls over 50% of Bitcoin’s mining power
A 51% attack occurs when a single entity gains control of more than half of the mining power, allowing it to manipulate transactions.
CBP Bitcoin Mining and Consensus Mechanisms 1
What is the primary role of Bitcoin miners in the network?