Proof of Work Assessment 1

1.What can those with hashpower use it for other than providing proof-of-work in the block building process and how does that benefit them?

Hashpower provides owners of hashing machinery the ability to vote for nodes they believe are most capable at gathering and timestamping events making for a more profitable network.

Hashpower provides owners hashing machinery the ability to hack into critical public infrastructure thereby providing access to critical information or financial gain.

Hashpower provides the ability to force network changes to provide more profit to the hashing machinery owner.

Hashpower now has other uses besides providing proof-of-work making Bitcoin nodes an in demand service external to the network.

2.The implementation of Bitcoin’s distributed ________ i) uses __________ ii) to give nodes the ability to demonstrate their willingness to __________ iii) via the hashing competition.

i) ledger, ii) timestamping, iii)build blocks

i) network, ii) blocks, iii) mine transactions

i) timestamp, ii) hash based proof-of-work, iii) invest in network infrastructure

i) proof-of-work, ii) hashing, iii) spend resources to earn more bitcoins

3.What does Proof-of-Work signal to other nodes in the Bitcoin network?

Proof-of-work is used to identify a node to the other nodes in a network as a means of projecting authority.

Proof-of-work is used as a signal from one node to another that they are a capable and dedicated player on the network whose block solutions deserve consideration for insertion into the chain.

Proof-of-work signals that the node holds a large stake of Bitcoins.

None of the above.

4.Which statements are true? (only one correct selection is necessary to proceed)

Proof-of-work is used as a signal from the user to a node that the transaction is an honest transaction.

The cost of a node participating in the network by receiving and validating a block from another node is minimal.

Bitcoin’s usage of proof-of-work solves the Byzantine Generals problem which has long stood in the way of the implementation of distributed computing networks that do not require a central governance system.

Bitcoin is the first usage of proof-of-work.

5.The proof of work process involves taking __________ i) which is arranged in a pre-defined format and using it plus ________ ii) as the message to be hashed. The node passes out block headers containing _________ iii) of all the transactions the block includes plus a ___________ iv) hash machines whose hashing power is being applied to solving its block.

i) a block-header, ii) a ‘nonce’ value, iii) a hashed record, iv) timestamp and a unique identifier to

i) a ‘nonce’ value, ii) all transactions, iii) a timestamp, iv) wallet address for

i) a timestamp, ii) a block-header, iii) a hashed record, iv) a ‘nonce’ value from the

i) timestamp, ii) a blockheader, iii) a hashed record, iv) IP address for

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