50 Questions
What type of consensus algorithm is Ethereum moving to?
Proof-of-Stake
What is the mainnet consensus protocol that Ethereum has been using?
Proof-of-Work
What must users stake to become a validator in Ethereum's proof-of-stake system?
32 ETH
What disadvantage is associated with Proof-of-Stake systems according to the text?
Wealth concentration
How are validators selected in Ethereum's proof-of-stake system?
Randomly (higher probability with more stake)
What is the main benefit of using a proof-of-stake consensus algorithm in blockchain technology?
Reduced centralization risks
How can someone become a validator in a blockchain that uses proof-of-stake?
By sending a special transaction that locks up their coins
What is one significant advantage of proof-of-stake over proof-of-work in terms of securing a blockchain?
Reduced electricity consumption
How does proof-of-stake aim to discourage 51% attacks compared to proof-of-work?
By making 51% attacks economically expensive through penalties
In terms of returns, how does proof-of-stake handle different amounts of staked coins?
$10 million of coins offers 10 times higher returns than $1 million of coins
What is the vision of Ethereum?
To create a decentralized world computer for running smart contracts
How does Ethereum differ from Bitcoin in terms of functionality?
Ethereum does distributed data storage and computations, unlike Bitcoin
What can the Ethereum client software do on your computer?
Create new transactions, explore Ethereum's blockchain, run smart contracts, and mine for new blocks
Which aspect is NOT a benefit of Ethereum?
Centralized Data Storage
What does Ethereum aim to create through its blockchain framework?
A decentralized world computer for executing smart contracts
What is Ethereum primarily known for?
Running smart contracts exactly as programmed
Which component of Ethereum acts as the execution runtime for the network?
Ethereum Virtual Machine (EVM)
In Ethereum, what is Ether used for?
Executing smart contracts
What does Proof of Work refer to in the context of Ethereum?
A consensus algorithm used by Ethereum
Who are the primary users of ethers in the Ethereum ecosystem?
Developers who create smart contracts
What is the consensus algorithm that Ethereum is moving towards?
Proof-of-Stake
How much ETH does a user need to stake in order to become a validator in Ethereum's Proof-of-Stake system?
32 ETH
What disadvantage is associated with Proof-of-Stake systems according to the text?
Wealth concentration
What is the main advantage of using a proof-of-stake consensus algorithm in blockchain technology?
Reduced centralization risks and ability to use economic penalties to deter attacks.
What phenomenon may result from rewards tied to stake in a Proof-of-Stake system?
Rich get richer
How does proof-of-stake differ from proof-of-work in terms of energy consumption?
Proof-of-stake does not require large quantities of electricity to secure the blockchain.
What is the primary underlying mechanism that takes users who deposit enough stake as validators in Ethereum's Proof-of-Stake system?
Proof-of-Stake
What is the potential impact on coin issuance in a proof-of-stake system?
It may be possible to have negative net issuance over time.
What is a major difference between Ethereum's current Mainnet and the Beacon Chain?
Mainnet uses Proof-of-Work, Beacon Chain uses Proof-of-Stake
How does proof-of-stake handle different amounts of staked coins in terms of returns?
$10 million of coins will yield exactly 10 times higher returns than $1 million of coins.
What risk does proof-of-stake aim to discourage with economic penalties?
51% attacks are made vastly more expensive to carry out.
How does proof-of-stake combat economies of scale compared to proof-of-work?
Reduced centralization risks as economies of scale have less impact.
What is the primary purpose of Ethereum?
To run smart contracts that execute exactly as programmed without any downtime, censorship, fraud, or third-party interference.
What key feature distinguishes Ethereum from traditional systems in terms of executing contracts?
The ability to run smart contracts without the possibility of downtime, censorship, fraud, or third-party interference.
What is the Ethereum Virtual Machine (EVM) primarily responsible for?
Providing an environment to execute code written in smart contracts.
In the context of Ethereum, what is Proof of Stake (PoS) used for?
To enforce negotiation between two parties exchanging smart contracts.
What is the key benefit of using a Proof of Stake consensus algorithm in blockchain technology?
To discourage 51% attacks compared to Proof of Work.
What type of consensus algorithm is Ethereum transitioning towards?
Proof of Stake.
What is the main difference between Ethereum and Bitcoin in terms of block time?
Ethereum's block time is shorter.
What is the Proof-of-Work mining challenge called in Ethereum?
Ethash.
What is Ethereum's plan regarding the consensus protocol to move away from electricity-expensive mining?
Move to a more energy-efficient Proof-of-Stake protocol.
What is the native cryptocurrency of Ethereum?
ETH.
What is the timeframe for block creation in Ethereum compared to Bitcoin?
Around 12-14 seconds in Ethereum, much shorter than Bitcoin's ~10 minutes.
What type of consensus algorithm is Ethereum planning to transition to for more energy efficiency?
Proof-of-Stake.
Describe the vision of Ethereum.
To create an unstoppable, censorship-resistant, self-sustaining, decentralized world computer that can run smart contracts.
What does Ethereum aim to achieve with its blockchain framework?
Ethereum aims to enable faster results and settlements, facilitate global and remote participation, and ensure the integrity of recorded votes through immutable records.
How does Ethereum differ from Bitcoin in terms of functionality?
While Bitcoin focuses on distributed data storage, Ethereum goes beyond that by also enabling distributed data storage plus computations.
What is the primary benefit of using a proof-of-stake consensus algorithm in blockchain technology?
One significant advantage is the energy efficiency compared to proof-of-work algorithms.
How can someone become a validator in a blockchain that uses proof-of-stake?
Users can become validators by staking their own coins as collateral in the network.
What must users stake to become a validator in Ethereum's proof-of-stake system?
Users must stake Ether, the cryptocurrency native to the Ethereum network.
Learn about how the blockchain keeps track of validators and the benefits of proof-of-stake consensus algorithm. Explore the process of becoming a validator and securing a blockchain without consuming large quantities of electricity.
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