February EOM Acad Quiz

Which of the following is called "the backbone of the cryptocurrency industry":

• Proof of work

• Smart contracts

• Blockchain

• Descentralized Apps

What are the most used consensus mechanisms?

• proof of work and proof of stake

• proof of work and proof of history

• proof of stake and proof of identity

• proof of history and proof of stake

Which of the following statements best defines Proof of Work?

• a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency

• an algorithm used with blockchains that delivers comparatively fast transactions through a consensus mechanism based on identity as a stake

• A system for validating cryptocurrency transactions that relies on powerful computer hardware to solve complex cryptographic puzzles

• a sequence of computation that can provide a way to cryptographically verify passage of time between two events

Which of the following is an advantage of the proof of work mechanism?

• significantly faster than PoS

• environmently friendly

• It's affordable for minners

• eliminates double-spend, which is when the same funds are spent more than once.

Which of the following is an disadvantage of the proof of work mechanism?

• scalability and lengthy process

• it requires incredibly powerful hardware, which isn’t cheap to acquire or cheap to run

• impact it has on the environment

• All of the above

Which one is an example of Proof of Work

• Bitcoin

• Ethereum 1.0

• Dogecoin

• All of the above are correct

What is the biggest disavantage of Proof of Stake?

• It's less secure than PoW.

• user tokens are “locked” into the system for a certain period of time.

• Is bad for the environment, because it consumes too much energy.

• Governance, because if people acquire a large amount of tokens they can influence on the project.

Why do cryptocurrencies need proof of stake?

• faster and more efficient in terms of its energy consumption

• everyone who joins a network has equal opportunity to be rewarded for their efforts

• The entry barrier isn’t as high.

• All of the above.

Which of the following sentence is correct:

• Staking is a system to validate blocks in blockchain

• Staking helps contribute to the efficiency and security of the cryptocurrency project you’ve invested

• Staking is a system to facilitate the exchange of different cryptpcurrencies

• Staking helps you to buy different assets only on Dapps

Which of the following is a staking system:

• Single-sided staking pool

• Liquidity pool

• First two answers are correct

• Group financial staking pool