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EC-COUNCIL EC-Council Blockchain Fintech CertificationB|FC exam Sample Questions (Q48-Q53):

NEW QUESTION # 48
What is a DEX

A. A cryptocurrency exchange such as coinbase
B. A decentralized exchanged that allows users to exchange cryptocurrency directly
C. A distributed exchange that covers multiple nationalities
D. A Decentralized finance app or DApp

Answer: B

Explanation:
ADecentralized Exchange (DEX)is a platform that allows users to trade cryptocurrencies directly with one another without the need for a central intermediary or custodian. On a DEX, trades are facilitated using smart contracts on a blockchain, which automate transactions and ensure transparency. This decentralized model allows for peer-to-peer trading, often providing users with greater privacy and control over their funds compared to centralized exchanges.
Key Details:
* Functionality of DEXs: DEXs enable users to connect their wallets and trade assets directly from their accounts. There is no central authority controlling the funds, reducing the risk of hacks and giving users full control over their private keys.
* Examples of DEXs: Popular DEXs include Uniswap, SushiSwap, and PancakeSwap, which are commonly built on blockchain networks like Ethereum and Binance Smart Chain. These platforms operate through automated market makers (AMMs) or order book systems, which facilitate trading without centralized management.
* Comparison with Centralized Exchanges (CEXs): Unlike centralized exchanges, which act as intermediaries and hold user funds, DEXs do not hold custody of funds. This reduces the risk of theft and enables users to trade directly from their wallets.
Therefore, the correct answer isC. A decentralized exchange that allows users to exchange cryptocurrency directly.

NEW QUESTION # 49
Proof of work algorithms are best described as being used for what?

A. Bitcoin mining
B. Executing transactions
C. Proof that adequate computational resources have been sent.
D. Proving the user has invested enough in the system

Answer: C

Explanation:
Proof of Work (PoW)algorithms are primarily used to demonstrate that sufficient computational resources have been expended by a participant to validate transactions and add them to the blockchain. In PoW, miners compete to solve a cryptographic puzzle, which requires significant computational power. This effort helps secure the network by making it prohibitively expensive for any individual or group to alter the blockchain's history.
Key Details:
* Mechanism of PoW: The essence of PoW is to prove that a certain amount of computational work has been performed. This "work" is measured by the effort miners invest in solving the cryptographic puzzle. The process requires miners to find a nonce that, when hashed with the block's data, results in a hash that meets the network's difficulty requirements.
* Security and Integrity: By proving computational work, PoW ensures that miners cannot simply fabricate or alter transactions without a significant investment of resources. This mechanism deters attacks and makes blockchain networks resistant to tampering and double-spending.
* Association with Bitcoin Mining: Although PoW is often associated with Bitcoin mining (as miners expend computational resources to validate and record transactions), its broader purpose is to establish a cost for participation in the network, ensuring that all entries to the blockchain are trustworthy and secure.
Therefore, PoW is best described as a mechanism for proving that adequate computational resources have been expended, aligning with the correct answer B.

NEW QUESTION # 50
_______implements the interledger protocol, which facilitates interoperability across different distributed and non-distributed ledger networks.

A. Caliper
B. Quit
C. Composer
D. Cello

Answer: B

Explanation:
The answer is(C) Quilt.
Hyperledger Quilt is a Java implementation of the Interledger Protocol (ILP). ILP is designed to transfer value across different ledgers, whether they are distributed ledgers (like blockchains) or traditional non-distributed ledgers.
Here's why the other options aren't the best fit:
* Composer:Hyperledger Composer was a tool for building blockchain applications, but it has been deprecated.
* Cello:Hyperledger Cello aims to provide a modular blockchain platform, making it easier to deploy and manage blockchain networks.
* Caliper:Hyperledger Caliper is a benchmarking tool used to measure the performance of different blockchain implementations.
Quilt's primary function is to enable interoperability between different ledger systems, which is crucial for the broader adoption and integration of blockchain technology.

NEW QUESTION # 51
________is used to split up the tasks into multiple chunks that are then processed by multiple nodes.

A. Fragmenting
B. Partitioning
C. Parsing
D. Sharding

Answer: D

Explanation:
Shardingis a scalability technique that splits tasks or data into smaller, more manageable pieces called
"shards." These shards are then processed in parallel by multiple nodes in a network. By dividing the workload, sharding can significantly enhance the efficiency and speed of blockchain networks, which is especially beneficial for handling large transaction volumes and complex computations.
Key Details:
* Purpose of Sharding: The main goal of sharding is to address blockchain scalability issues. By enabling the network to process transactions and data in parallel, it reduces the load on individual nodes, thus increasing the overall throughput of the blockchain.
* How Sharding Works: In a sharded blockchain, each node only needs to process a portion of the total data rather than every single transaction on the network. Each shard is responsible for a subset of data and transactions, and only nodes within a particular shard need to validate its transactions.
* Relevance in Blockchain: Sharding is crucial in large-scale blockchain networks like Ethereum, where high transaction volumes can lead to congestion. Ethereum 2.0, for example, incorporates sharding as a core feature to improve its scalability and transaction processing capacity.
Sharding is, therefore, the correct answer, as it directly refers to the method of dividing tasks for parallel processing in a distributed environment.

NEW QUESTION # 52
A____does not result in a new chain and does not require client nodes to upgrade.

A. Side chain
B. Hard fork
C. Soft fork
D. Dependent chain

Answer: C

Explanation:
Asoft forkis a change to a blockchain protocol that is backward-compatible, meaning it does not result in the creation of a new chain and does not require all client nodes to upgrade. Nodes that do not upgrade can still participate in the network, although they may not have access to all new features introduced by the soft fork.
Key Details:
* Backward Compatibility: In a soft fork, updated nodes enforce the new rules, while non-updated nodes continue to follow the older protocol but remain part of the same blockchain. This contrasts with hard forks, where incompatibility leads to the creation of a new chain.
* Use Cases: Soft forks are commonly used to implement protocol upgrades or adjustments that do not fundamentally alter the structure of the blockchain, such as increasing block size limits or adding new features that are optional.
* Examples: An example of a soft fork is the Segregated Witness (SegWit) update on the Bitcoin blockchain, which was implemented to increase block capacity without splitting the chain.
Thus,B. Soft forkis the correct answer, as it refers to a backward-compatible update that does not require a new chain or mandatory upgrades from all nodes.

NEW QUESTION # 53
......

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100% 312-82 Exam Coverage, 312-82 Excellect Pass Rate

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EC-COUNCIL EC-Council Blockchain Fintech CertificationB|FC exam Sample Questions (Q48-Q53):

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