CBP Bitcoin Mining and Consensus Mechanisms 1

Question 1

What is the primary role of Bitcoin miners in the network?

Accepted Answer

To validate transactions and add them to the blockchain

Answer

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?

Accepted Answer

Proof-of-work (PoW)

Answer

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?

Accepted Answer

The miner is rewarded with new Bitcoin and transaction fees

Answer

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?

Accepted Answer

Mining difficulty adjusts to keep block times consistent

Answer

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?

Accepted Answer

To reduce the rate of new Bitcoin issuance over time

Answer

Bitcoin halving reduces the number of new bitcoins issued per block, ensuring controlled inflation and scarcity over time.

(CBP) Certified Bitcoin Professional Practice Test