Assessment 1

Students must receive a score of 4/5 to proceed. All questions are multiple choice questions.

1. What happens to the network when nodes leave or are disconnected?

   1. Nothing. ✓

   2. It can fracture the small world network.

   3. If enough nodes leave at the same time the network could stall.

   4. The network becomes less efficient.

2. Why do nodes spontaneously form a Small World Network?

   1. The result of asymmetrical game theory.

   2. It helps them to quickly propagate transactions and blocks. ✓

   3. The rules force them to or they will be disconnected from the network.

   4. It makes the network more decentralised.

3. The requirement to ______ in order to submit a block creates a fair barrier to participation in the consensus process, since only _____ can impact the network rules.

   1. collect and organize transactions, valid transactions

   2. validate transactions, nodes

   3. show proof-of-work, valid blocks ✓

   4. be a node, blocks

4. What role does altruism play in the network?

   1. None. ✓

   2. It forms the basis for some of the incentives.

   3. The sharing of block data is mutually beneficial.

   4. It is the basis for many of the incentives.

5. Which are strong incentives for a node to build very low latency connections to the nodes that are most likely to find a block (select all that apply)?

   1. The First Seen Rule. ✓

   2. To be able to share and spread block information readily. ✓

   3. Minimising the potential to waste proof-of-work on already surpassed previous block hashes. ✓

   4. Reducing the number of orphan blocks. ✓