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EC-COUNCIL EC-Council Blockchain Fintech CertificationB|FC exam Sample Questions (Q16-Q21):

NEW QUESTION # 16
A________in a new chain and requires clients to upgrade in order to participate on the new blockchain.

A. Sharding
B. Soft fork
C. Sub chain
D. Hard fork

Answer: D

Explanation:
Ahard forkoccurs when there is a fundamental change in a blockchain's protocol, resulting in the creation of a new chain that is incompatible with the previous one. After a hard fork, nodes must upgrade to the new version of the blockchain's software to continue participating in the network. A hard fork can be used to implement new features, fix security issues, or change core aspects of the blockchain.
Key Details:
* Differences from Soft Forks: Unlike a soft fork, which is backward-compatible and allows nodes on the previous version to still participate, a hard fork splits the blockchain into two distinct paths, with the upgraded path requiring new software.
* Examples: Notable hard forks include Bitcoin Cash from Bitcoin and Ethereum Classic from Ethereum. These forks occurred due to disagreements within the community on how to handle certain protocol changes, leading to the creation of separate blockchains.
* Upgrade Requirements: Participants on the blockchain who wish to continue on the new chain after a hard fork must update their software. Those who do not upgrade remain on the original chain, which continues as a separate, incompatible blockchain.
Thus, the correct answer isHard fork (A), as it directly refers to a blockchain split that requires client upgrades for participation.

NEW QUESTION # 17
Ethereum uses_____ as Proof of Work (PoW) whereas Bitcoin uses____based PoW.

A. PoW PoB
B. PoB BoW
C. ETHASH SHA-256
D. SHAZ56 ETHASH

Answer: C

Explanation:
Ethereum uses Ethashas its Proof of Work (PoW) algorithm, whileBitcoin uses SHA-256for its PoW algorithm. Both are used to secure their respective networks, but they differ in terms of computational complexity and memory requirements.
Key Details:
* Ethash (Ethereum): Ethash is a memory-hard hashing algorithm designed to be resistant to ASIC mining, favoring GPU miners instead. It requires substantial memory, which helps to ensure a higher degree of decentralization.
* SHA-256 (Bitcoin): Bitcoin's SHA-256 is a highly secure hashing algorithm that supports ASIC mining. It is computationally intensive but less memory-demanding compared to Ethash.
* Purpose in PoW: Both algorithms enable miners to validate transactions and secure the network by solving complex puzzles. Ethash's design helps Ethereum maintain a decentralized network, whereas SHA-256 allows Bitcoin to achieve high levels of security with specialized mining equipment.
Therefore,D. ETHASH SHA-256is the correct answer, as these are the specific PoW algorithms used by Ethereum and Bitcoin, respectively.

NEW QUESTION # 18
According to a study be Deloitte, which of the following are benefits of blockchain for the insurance industry (pick two)?

A. More efficient claims processing
B. Supporting strategic initiatives
C. Comprehensive interoperable health records
D. Lower costs

Answer: A,D

Explanation:
According to studies conducted by Deloitte and other industry research, blockchain offers several benefits for the insurance industry, particularly inmore efficient claims processingandlower costs. Blockchain's capabilities in data immutability, transparency, and automation play key roles in streamlining insurance processes and reducing operational expenses.
Key Details:
* Efficient Claims Processing: Blockchain enables quicker verification and processing of claims by automating workflows through smart contracts. This reduces paperwork, minimizes errors, and speeds up the claims process, improving customer satisfaction.
* Lower Costs: By reducing intermediaries and leveraging automation, blockchain lowers administrative costs. It minimizes the need for manual verification and fraud detection, which traditionally consume significant resources in the insurance industry.
* Transparency and Fraud Reduction: Blockchain provides an immutable and transparent record of all transactions. This helps prevent fraud, as all stakeholders have access to the same data, reducing discrepancies and the need for extensive audits.
In conclusion,A. More efficient claims processingandD. Lower costsare the correct answers, as these are key benefits of blockchain for the insurance industry identified in Deloitte's research.

NEW QUESTION # 19
_______uses a Trusted Execution environment (TEE) to provide randomness and safety in the leader election process via a guaranteed wait time.

A. PoA
B. PoD
C. PoET
D. Pol

Answer: C

Explanation:
Proof of Elapsed Time (PoET)is a consensus mechanism that uses a Trusted Execution Environment (TEE) to ensure randomness and safety in the leader election process by enforcing a guaranteed wait time.
Developed by Intel, PoET is particularly used in permissioned blockchain networks where a TEE can securely run code to determine which node is elected to propose the next block. This mechanism is efficient in terms of energy consumption and provides a fair method for selecting a leader without requiring intensive computational power.
Key Details:
* Role of TEE in PoET: The TEE ensures that nodes wait for a random period before being eligible to propose a new block. This waiting period is verified by the TEE, which acts as a trusted third party to confirm that nodes have adhered to the assigned wait time.
* Randomness and Security: PoET provides randomness in the leader selection process, reducing the chances of any node gaining an unfair advantage. It also promotes security by leveraging the TEE, which is designed to prevent tampering with the waiting time calculations.
* Use Cases: PoET is mainly used in permissioned blockchain environments like Hyperledger Sawtooth, where nodes are pre-approved, and there is a need for a scalable yet secure consensus mechanism.
In summary, PoET is the correct answer as it directly refers to a consensus mechanism that utilizes a Trusted Execution Environment for leader election.

NEW QUESTION # 20
________can support up to 10-14 transactions per second.

A. Dapps
B. Ethereum
C. Zcash
D. Bitcoin

Answer: B

Explanation:
Ethereumcurrently supports a transaction throughput of approximately10-14 transactions per second (TPS)
. This transaction speed is a result of Ethereum's design, which balances decentralization and security, albeit at the cost of scalability. This TPS rate is consistent across the Ethereum network prior to its upgrade to Ethereum 2.0, which aims to increase scalability through sharding and Proof of Stake.
Key Details:
* Limitations of Current Throughput: Ethereum's TPS rate is due to limitations in its consensus mechanism (formerly Proof of Work, now Proof of Stake) and block size, which prioritize security over transaction speed.
* Comparison with Other Networks: Bitcoin, for example, supports around 3-7 TPS, while other networks like Solana or Binance Smart Chain support significantly higher TPS. Ethereum's TPS may increase as Ethereum 2.0 is fully implemented, which aims to improve its scalability.
* Impact on Decentralized Applications (DApps): Ethereum's transaction capacity impacts DApps running on the network, as higher usage can lead to congestion and increased transaction fees(gas fees).
The upcoming upgrades are intended to alleviate these issues and enhance performance.
Therefore,D. Ethereumis the correct answer, as it supports approximately 10-14 TPS in its current form.

NEW QUESTION # 21
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