Certified Bitcoin Professional Practice Exam

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Prepare for the Certified Bitcoin Professional Exam. Tackle multiple-choice questions, accompanied by hints and explanations, to master the principles of Bitcoin and blockchain technology. Enhance your readiness and confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How does the Bitcoin network reach consensus?

Through a central authority
By majority voting
By using a protocol called Proof of Work
By mutual agreement of all users

The correct answer is: By using a protocol called Proof of Work

The Bitcoin network reaches consensus through a protocol called Proof of Work. This method involves miners solving complex mathematical problems to validate transactions and create new blocks in the blockchain. The first miner to solve the problem gets to add the next block to the chain and is rewarded with newly minted bitcoins and transaction fees. This process ensures that the network operates in a decentralized manner, as there is no single central authority dictating the state of the blockchain. Instead, it relies on the collective effort of miners who compete against each other, which enhances security and prevents malicious actors from easily manipulating the system. Additionally, Proof of Work requires an investment of computational power, which helps to secure the network against attacks. It also serves as a means of establishing trust among participants, as the work put in by miners to validate transactions assures users that the network is functioning correctly. Therefore, the utilization of Proof of Work is fundamental in maintaining the integrity and reliability of the Bitcoin network.