Digital Wallets (CYBERUS) Lecture 6 – Blockchain: Technical Basics and Mythbusting

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What is the maximum number of Bitcoins that can be created or mined?

21 million

What is the process of validating a block on the Bitcoin network known as?

Bitcoin mining

What are miners competing against each other to solve in Bitcoin mining?

Complex hash puzzles

How are the blocks of encrypted data permanently linked to each other in the blockchain?

Chained Signup and view all the answers

What does the SHA-256 algorithm do to the stored transactions on a blockchain?

Encrypts them Signup and view all the answers

Who is the lecturer for the module 'Blockchain: Technical Basics and Mythbusting'?

Dr. Muriel Frank, Dr. Johannes Sedlmeir Signup and view all the answers

What is the date for the lecture on 'Ethereum and Smart Contracts'?

Tuesday, 10/24/23 Signup and view all the answers

What is the duration of the lecture on 'Privacy and Compliance: The Case of CBCDs'?

90m Signup and view all the answers

When is the Question & Answer Session scheduled to take place?

Tuesday, 12/05/23 Signup and view all the answers

What is the duration of the Oral exams?

6h Signup and view all the answers

What are the factors that could cause the energy consumption of PoW blockchains to decrease in the long run?

Halving events, exponential increase in Bitcoin price, and cumulative transaction fees increasing by two orders of magnitude in the long run. Signup and view all the answers

Why is a higher hashrate considered to enhance the security of the Bitcoin network?

A higher hashrate makes it increasingly unlikely for an attacker to control over 50% of the hashrate, thus increasing the network's strength and security. Signup and view all the answers

What is the myth debunked about the energy consumption of all blockchains?

Only PoW consensus is very energy-intensive, while all other consensus mechanisms require only a fraction of the energy of a central system. Signup and view all the answers

What is the primary reason for the increasing energy demand in the Bitcoin network?

The increasing energy demand is primarily due to the growing hashrate, which in turn increases the network's security. Signup and view all the answers

What is the condition that would make an attack on the Bitcoin network increasingly unlikely as the hashrate increases?

An attack on the Bitcoin network becomes increasingly unlikely as the hashrate increases because a potential attacker would require more and more computing capacity, which it would be unlikely to provide on its own over an extended period of time. Signup and view all the answers

What are the bounds for PoW blockchains' electricity consumption?

Lower bound, Upper bound Signup and view all the answers

How are hash rates measured in a blockchain network?

In terms of hashes (guesses) per second (h/s) Signup and view all the answers

What percentage of the worldwide electricity consumption does the energy consumption of proof-of-work blockchains account for?

Approximately 0.07% Signup and view all the answers

What factors determine the energy consumption of proof-of-work blockchains?

Amount of reward for miners, electricity prices Signup and view all the answers

Is the energy consumption of PoW blockchains proportional to their throughput or complexity?

No Signup and view all the answers