ABC of Mining - Proof-Of-Work | Blockchain Central

The video explains the proof of work (PoW) consensus mechanism used in Bitcoin and other blockchains. It highlights the differences between permissioned and unpermissioned blockchains, detailing how PoW ensures data integrity in a decentralized network. The video describes the components of a block, the hashing process, and the computational effort required for mining. It concludes with a discussion on the energy-intensive nature of PoW and the exploration of alternative mechanisms.

What is the primary purpose of the proof of work mechanism in permissionless blockchains?

• To allow only selected nodes to validate transactions

• To ensure all nodes agree on the same data

• To increase the speed of transactions

• To reduce the energy consumption of the network

In the Bitcoin network, where are transactions collected before validation?

• In the transaction ledger

• In the blockchain

• In the mempool

• In the miner's pool

What is a nonce in the context of blockchain?

• A type of transaction fee

• A timestamp of a transaction

• A random number used in hashing

• A digital fingerprint of a block

What determines the difficulty of finding a Bitcoin hash?

• The amount of transaction fees

• The size of the mempool

• The number of leading zeros required

• The number of transactions in a block

What happens when a miner successfully finds the correct nonce?

• The block is added to the blockchain

• The miner is penalized

• The transaction fees are refunded

• The block is discarded

Why is the proof of work process considered energy-intensive?

• It requires a lot of computational resources

• It needs constant network connectivity

• It involves multiple transaction verifications

• It uses a complex algorithm for encryption

What reward does a miner receive for successfully adding a block to the blockchain?

• A percentage of the total network transactions

• A combination of block reward and transaction fees

• A fixed amount of transaction fees

• A bonus from the blockchain developers