Curious about Actual Eccouncil EC-Council Blockchain Fintech Certification (B|FC) (312-82) Exam Questions?

Correct : B

Proof of Burn (PoB) is a consensus mechanism where users permanently destroy (or 'burn') a certain quantity of cryptocurrency, such as Bitcoin, to gain the right to mine or acquire an altcoin. This process proves commitment to the network and secures it by effectively sacrificing one asset to obtain another.

Key Details:

Burning Process: In PoB, participants send a certain amount of cryptocurrency to an unspendable address, effectively removing it from circulation. This act serves as proof that they have invested in the network by reducing the supply of the original cryptocurrency.

Purpose and Use Cases: PoB is used by networks that want to incentivize long-term commitment and reduce total supply. It is often seen in new blockchain projects that allow miners or users to trade value in established currencies like Bitcoin for the native token of the new network.

Security: By requiring participants to destroy value, PoB helps prevent spam attacks and promotes network stability.

Therefore, B. Proof of Burn is the correct answer, as it describes the method where users destroy a certain amount of cryptocurrency to receive or mine another asset.

Correct : A

Augur is a decentralized, blockchain-based predictions market built on the Ethereum network. It enables users to create and participate in markets based on the outcome of real-world events, using smart contracts to automate the process and secure transactions.

Key Details:

Ethereum-Based: Augur utilizes the Ethereum blockchain to facilitate the creation and settlement of prediction markets. It leverages Ethereum's smart contracts to ensure transparency, immutability, and trustless interactions.

Decentralized Prediction Market: In Augur, users can bet on the outcome of various events, ranging from sports to elections. The decentralized nature of the platform ensures that no central authority controls the markets, providing a level of censorship resistance.

Token Usage: Augur uses a token called REP (Reputation) that holders use to report and dispute outcomes of events on the platform. This ensures that the market outcomes are validated in a decentralized manner.

Thus, A. Augur is the correct answer, as it is a blockchain-based prediction market built on Ethereum.

Correct : B

Hyperledger Cello is designed to facilitate the deployment and management of blockchain networks. It provides an easy-to-use framework for creating, managing, and scaling blockchain networks, making it suitable for rapid deployment and operation. Although the term 'bloodchains' might be a typo or intended for 'blockchains,' Cello indeed simplifies the blockchain setup process for various applications.

Key Details:

Deployment and Management: Cello offers a suite of tools that automates blockchain deployment, operation, and monitoring, making it accessible for businesses looking to adopt blockchain technology with minimal effort.

Modular Approach: It supports various blockchain frameworks, including Hyperledger Fabric, and is aimed at reducing the complexity involved in blockchain management.

Use Cases: Hyperledger Cello is useful for enterprise blockchain applications, as it allows administrators to manage blockchain networks with tools that support configuration, monitoring, and scaling.

Thus, B. Cello is the correct answer, as it simplifies blockchain deployment and management.

Correct : D

Ethereum uses Ethash as its Proof of Work (PoW) algorithm, while Bitcoin uses SHA-256 for its PoW algorithm. Both are used to secure their respective networks, but they differ in terms of computational complexity and memory requirements.

Key Details:

Ethash (Ethereum): Ethash is a memory-hard hashing algorithm designed to be resistant to ASIC mining, favoring GPU miners instead. It requires substantial memory, which helps to ensure a higher degree of decentralization.

SHA-256 (Bitcoin): Bitcoin's SHA-256 is a highly secure hashing algorithm that supports ASIC mining. It is computationally intensive but less memory-demanding compared to Ethash.

Purpose in PoW: Both algorithms enable miners to validate transactions and secure the network by solving complex puzzles. Ethash's design helps Ethereum maintain a decentralized network, whereas SHA-256 allows Bitcoin to achieve high levels of security with specialized mining equipment.

Therefore, D. ETHASH SHA-256 is the correct answer, as these are the specific PoW algorithms used by Ethereum and Bitcoin, respectively.

Correct : A

FinCEN requires money transmitters and companies involved in virtual currency (CVC) transmission to report suspicious transactions as part of their anti-money laundering (AML) responsibilities. This is in addition to maintaining an effective AML program and registering as a money service business (MSB).

Key Details:

AML Program: The program must be reasonably designed to detect and prevent the use of financial services for money laundering or terrorist financing.

Reporting Suspicious Activity: FinCEN mandates that companies must file Suspicious Activity Reports (SARs) for any transactions that appear to be potentially suspicious or indicative of illegal activities.

Regulatory Compliance: This requirement ensures that businesses adhere to federal regulations, contributing to a secure financial system by monitoring and reporting illicit activity.

Therefore, A. Report suspicious transactions is the correct answer, as this is a key requirement for companies under FinCEN's regulations regarding money transmission and virtual currencies.