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BlockChain CBSA : BTA Certified Blockchain Solution Architect Exam Dumps

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Latest 2024 Updated BlockChain BTA Certified Blockchain Solution Architect Syllabus
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CBSA Test Center Questions : Download 100% Free CBSA exam Dumps (PDF and VCE)

Exam Number : CBSA
Exam Name : BTA Certified Blockchain Solution Architect
Vendor Name : BlockChain
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CBSA Exam Format | CBSA Course Contents | CBSA Course Outline | CBSA Exam Syllabus | CBSA Exam Objectives


This exam is a 70 question multiple-choice exam that lasts 1.5 hours (90 minutes) and is performance-based evaluation of Solution Architect skills and knowledge. Performance-based testing means that candidates must answer questions to reflect what they must perform on the job. Internet access is not provided during the exam, nor is any course material or study guides.



Scores and Reporting

Official scores for exams come immediately following the exam from Pearson VUE. A passing score is 70%. Exam results are reported PASS/FAIL and you will be provided your percentage. Blockchain Training Alliance does not report scores on individual items, nor will it provide additional information upon request.



The Certified Blockchain Solution Architect (CBSA) exam is an elite way to demonstrate your knowledge and skills in this emerging space. Additionally, you will become a member of a community of Blockchain leaders. With certification comes monthly industry updates via email and video.



The CBSA exam is a 70 question multiple-choice exam that lasts 1.5 hours and is a performance-based evaluation of Solution Architect skills and knowledge. Internet access is not provided during the exam, nor is any course material or study guides.



A person who holds this certification demonstrates their ability to:

- Architect blockchain solutions

- Work effectively with blockchain engineers and technical leaders

- Choose appropriate blockchain systems for various use cases

- Work effectively with both public and permissioned blockchain systems



This exam will prove that a student completely understands:

- The difference between proof of work, proof of stake, and other proof systems and why they exist

- Why cryptocurrency is needed on certain types of blockchains

- The difference between public, private, and permissioned blockchains

- How blocks are written to the blockchain

- Where cryptography fits into blockchain and the most commonly used systems

- Common use cases for public blockchains

- Common use cases for private & permissioned blockchains

- What is needed to launch your own blockchain

- Common problems & considerations in working with public blockchains

- Awareness of the tech behind common blockchains

- When is mining needed and when it is not

- Byzantine Fault Tolerance

- Consensus among blockchains

- What is hashing

- How addresses, public keys, and private keys work

- What is a smart contract

- Security in blockchain

- Brief history of blockchain

- The programming languages of the most common blockchains

- Common testing and deployment practices for blockchains and blockchain-based apps



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BlockChain Blockchain study help

 

Can blockchain help Baltimore with its vacant property problem?

Time has long been the enemy of those doing battle with Baltimore’s thousands of vacant properties.

In the past, it was not uncommon for two to three years to elapse as city officials waded through the legally arduous process of foreclosing on a vacant home. Today, officials hope they have shortened that window to four to five months with the help of expedited in rem foreclosures.

Still more time passes, however, as Baltimore awaits title searches, a process needed to make sure a property’s ownership history is clear and to satisfy title insurance companies. In the case of Baltimore’s thousands of vacant homes, multiple title searches are needed for every house — one for each step in the process of acquiring, rehabbing and selling.

The time consumed by those searches is something Baltimore’s residents can scarcely afford. Each passing day attracts more crime, vermin and hazardous conditions in vacant homes.

Now, however, Baltimore officials are hopeful that they have a solution to recuperate some of that time lost, too.

This month, the city’s spending board agreed to a $225,000 contract to kick off an effort to use blockchain technology to record the city’s vacant properties. Over the three-year pilot, Medici Land Governance will input records for the city’s roughly 13,600 vacant properties into a blockchain, building a database more secure than the system currently used by the city and also more efficient.

The system will contain an immutable record of the chain of custody for each property, eliminating the need for subsequent title searches, explained Ebony Thompson, Baltimore’s solicitor and self-appointed blockchain specialist. With fewer title searches needed, Baltimore’s most demanding properties can zip much more quickly through changes in ownership, getting into the hands of the developers needed to rehabilitate them and eventually the city’s residents.

“We could certify it much quicker,” Thompson said. “That’s music to my ears.”

Baltimore’s foray into blockchain began on Thompson’s first day on the job. It was Jan. 31, 2022, and days earlier, the city had been devastated by the loss of three firefighters. The three were killed when a vacant home that they entered to fight a fire collapsed violently inward. Scott held a news conference that day to announce Baltimore would undertake a review of efforts to mitigate the stubborn vacant problem.

Thompson, who had joined the city from private practice Venable, already had an idea in mind. During her time at the firm, she had taken a class at Massachusetts Institute of Technology on the use of blockchain. The intersection of the technology with the world of real estate had piqued her interest, in particular the possibilities for speeding up and securing the transfer of properties.

“What I heard was the illiquidity of real estate is the biggest problem,” Thompson said. “Even if you’re good at it, it takes too long.”

Two vacant homes sit on the 2400 block of Annapolis Road. (Karl Merton Ferron/Staff Photo) Two vacant homes sit on the 2400 block of Annapolis Road. (Karl Merton Ferron/Staff Photo)

Potential buyers of real estate face numerous barriers from intermediaries, Thompson said. People are shut out of purchasing because they don’t qualify for loans offered by banks. Baltimore has a notorious history of redlining, the racially motivated denial of loans and other services to communities considered less desirable. The city is routinely referred to as the birthplace of redlining.

“I started thinking about how blockchain could remove some of those intermediaries, make it more efficient, make it more liquid and make it more accessible to people who have been shut out,” Thompson said.

Other cities like New York City, where the demand for property is high, have experimented with blockchain as a means to prevent people from fraudulently claiming ownership of properties. Baltimore would be the first to use the technology to specifically target unwanted properties.

“What if as the birthplace of redlining, this could also be the birthplace for allowing the people that had to suffer through that, giving them the accessibility to actually revitalize and have a part of revitalizing their own neighborhoods?” Thompson added.

Synonymous with cryptocurrency, blockchain is a broader technology that can be used to decentralize data and allow secure transactions.

Here’s how Johns Hopkins University Magazine described it: Blockchain is a system of validation and encryption for a digital token (a block). Each block has its own unique fingerprint (a hash). Once someone makes a change to the information contained within the original block — say, to add the transaction of a sale — a new, unique block is created and receives its own hash. These blocks are linked to one another, forming a chain, allowing users to review how and by whom the information was edited along the way.

Because the information contained within the blockchain is decentralized, that makes it much more difficult to hack than traditional databases. Blockchains have multiple nodes. Even if a hacker gains access to the database via one of the nodes, it can’t be changed. Alterations would be immediately recognizable when compared to all other copies of the chain and rejected.

While the technology was designed to record financial transactions, its use has grown in other fields such as real estate where data storage and tracking assets are required. Baltimore’s pilot, led by contractor Medici Land Governance, will use blockchain to record the transaction histories of its vacant properties.

When any property is sold, a title search of public records is conducted to confirm its rightful owner. The searches reveal any claims or liens against a property that could impact its purchase. That information is provided to title insurance companies, that secure an owner’s rights to a property. While title insurance isn’t required, it’s best practice, and lenders like to see it to ensure they’re making secure investments.

For Baltimore, title searches have been time-consuming and, in some cases, take months, Thompson said. Worse, the search has to be repeated each time a property changes hands.

With the blockchain technology, however, the city will create an “immutable” ledger of each vacant property’s history. Based on conversations Medici has had with large title insurance companies, that record would be enough to satisfy the title search requirement moving forward, CEO Ali El Husseini told the Board of Estimates recently.

Insurance companies have also said the cost of title insurance could be lowered as a result, he said. Reduced costs will benefit not just the city but the eventual buyers of homes, making them more attractive to developers and people who will live in them.

“Blockchain is the first step,” El Husseini said. “The second step … is making the ability and the purpose of the blockchain to be useful.”

Katherine Pinkard, the president of Pinkard Properties, has studied the intersection of blockchain and real estate. Baltimore’s proposal has potential to increase transparency for the city and other users of the system. Plans call for Baltimore’s database to be public-facing, but it will have a private layer so that only the city can add to it.

“It creates a level of efficiency that we’ve not had before,” she said. “You would be able to pull up a piece of property and very clearly see through these blocks on the chain when it has changed hands and with whom and why and at what cost. All that data and information is there stored in one place.”

Still, Pinkard warned, blockchain is not a panacea. It’s only as strong as the data input into the system, she said.

Thompson said the city will continue to use traditional title searches to compile the information for the database. Information from those searches is already honored by title insurance companies, and it’s the most reliable option, she said.

The blockchain will run parallel to the Maryland Department of Assessments and Taxation’s digital SDAT system, which the city will continue to use, Thompson said.

The blockchain system offers the added benefit of improved security against a cybersecurity attack, a threat that is still fresh on the minds of Baltimore officials in the wake of a 2019 ransomware attack. Although the city’s property records were not damaged during the attack, property sales were completely halted for a period that year as the city struggled to regain access to its mainframe system. Other data was permanently lost.

Construction of the blockchain will begin early next year and is expected to take three years. If successful, the possibilities for expanding Baltimore’s use of blockchain are numerous. Thompson said she sees potential for a citywide property database, but also using the technology for smart contracts that would automatically award payments to subcontractors when primary vendors are paid.

Pinkard said there’s potential for the “tokenization” of real estate, allowing fractional ownership shares of properties. City residents who perhaps couldn’t qualify for a mortgage outright would have the potential to buy a fractional share of their home or apartment building. The system would allow owners to maintain their shares both when buying and selling.

“Having the city take the lead, I think is the lynchpin that’s going to help make that happen,” Pinkard said. “If the city creates a supportive environment around experimenting with blockchain, that I think is the first domino that needed to fall.”

Vacant homes sit on the 900 block of W. Franklin Street. (Karl Merton Ferron/Staff Photo) Vacant homes sit on the 900 block of W. Franklin Street. (Karl Merton Ferron/Staff Photo)

Bybit Web3 Unveils Comprehensive Guide to Navigating the Crypto Wallet Landscape

DUBAI, UAE, Jan. 4, 2024 /PRNewswire/ -- Bybit, the world's third largest crypto exchange by volume, proudly unveils an in-depth study that navigates the complex landscape of cryptocurrency wallets, focusing on the user's perspective. As the crypto industry continues to mature, our study sheds light on the development cycle, types, future prospects, key factors for selection, and a personalized guide to choosing the right crypto wallet.

Bybit Web3 Unveils Comprehensive Guide to Navigating the Crypto Wallet Landscape

This in-depth guide delves into the development cycle of crypto wallets, dissects various types available, and sheds light on their future prospects, empowering users of all levels to make informed decisions about their digital asset storage.

"We believe that navigating the world of crypto wallets shouldn't be a daunting task," says Ben Zhou, Co-founder and CEO at Bybit "This study aims to bridge the knowledge gap and provide users with the resources they need to make informed decisions about their digital assets. We want to empower everyone, regardless of their experience level, to confidently participate in the exciting world of web3."

Full report can be found in here:https://learn.bybit.com/web3-experts/types-of-crypto-wallets/

Three Key Findings from the Report:

Key Finding 1: Welcome to Wallet 3.0 – where mastering multichain, multi-asset capabilities is the name of the game.

The report traces the fascinating journey of crypto wallets, mirroring the dynamic evolution of blockchain technology. From their humble beginnings as basic Bitcoin storage units to their current status as sophisticated platforms facilitating interaction with decentralized applications (DApps) and emerging web3 initiatives, the study charts the three distinct stages of wallet development:

1.0 Era (2009-2013): Simple tools for storing and transferring Bitcoin. 2.0 Era (2014-2020): More complex platforms enabling interaction with DApps and the DeFi ecosystem. 3.0 Era (2021-present): Multichain, multi-asset management platforms with a focus on user experience and interactive features.

Key Finding 2: In the ongoing battle of Security versus Convenience, your choice of a Web3 Wallet speaks volumes about your priorities.

Understanding that users prioritize convenience, ease of use, and security, our study provides a comprehensive guide to help users evaluate wallets effectively. Factors such as internet connectivity, control over accounts, and specific use cases are analyzed, ensuring users make informed decisions based on their preferences and requirements.

Key Finding 3: Double up! All users should wield a dynamic duo of wallet types for a savvy and secure crypto journey.

Recognizing that user experience is paramount, the study guides users through the process of selecting the perfect wallet for their individual needs and expertise. It offers insightful advice for:

Beginners: Seeking a straightforward and uncomplicated entry point. Intermediate Users: Eager to explore DeFi, staking, and NFTs. Advanced Users: Actively involved in trading, yield farming, and other advanced blockchain activities.

User Profile

Suitable Crypto Wallet Types

Key Features

Reason for Suitability

Recommended Wallets

Beginners

●       Software wallets (EOA)

●       Mobile wallets

●       User-friendly

●       Basic security

●       Supports various cryptocurrencies

Ideal for ease of use and straightforward crypto management

 

●       Bybit Wallet

●       Trust Wallet

Intermediate Users

●       Multichain wallets

●       Web3 wallets

●       DeFi/NFT integration

●       Enhanced security

●       Multichain support               

Great for expanding into DeFi, NFTs and multichain assets

●       Bybit Wallet

●       MetaMask

●       Exodus

Advanced Users

●       Hardware wallets

●       Advanced software wallets (MPC, AA wallets)

●       High-level security

Wide crypto range

●       Advanced features (e.g., decentralized identity)    

Perfect for extensive crypto activities and advanced security needs

●       Bybit Wallet

●       Ledger Nano X

●       Argent

"As the web3 landscape evolves, so do the tools we need to navigate it. But one constant remains: the critical need for secure and reliable storage for your digital assets," said Ben. "At Bybit, we embrace this responsibility with profound commitment. Our relentless efforts are focused on advancing and fortifying our Wallets, broadening the spectrum of security measures and enhancing the user experience. Our goal is to provide a safer and more convenient platform for users to store and leverage their Web3 and crypto assets."

#Bybit / #TheCryptoArk

About Bybit

Bybit is a top-three cryptocurrency exchange by volume with 20 million users established in 2018. It offers a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One's reigning Constructors' and Drivers' champions: the Oracle Red Bull Racing team.

For more details about Bybit, please visit Bybit Press. For media inquiries, please contact: media@bybit.comFor more information, please visit: https://www.bybit.comFor updates, please follow: Bybit's Communities and Social Media

Discord | Facebook | Instagram | LinkedIn | Reddit | Telegram | TikTok | X (Twitter) | Youtube

Photo - https://mma.prnewswire.com/media/2311076/Bybit.jpg

Logo - https://mma.prnewswire.com/media/2311075/Bybit_Web3_Logo.jpg


 




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exam-11

Blockchain CBSA Practice Test Questions and Answers, Blockchain CBSA Exam Dumps - Killexams

All Blockchain CBSA certification exam dumps, study guide, training courses are Prepared by industry experts. PrepAway's ETE files povide the CBSA BTA Certified Blockchain Solution Architect practice test questions and answers & exam dumps, study guide and training courses help you study and pass hassle-free!

Blockchain 101

14. Launching your blockchain

What is needed to launch your own blockchain? Let's talk about this now before we get started. Let's talk about why perhaps we want to build a blockchain. Now there are a lot of good reasons to just go ahead and decide. Maybe none of the platforms meet our requirements for one reason or another. We may want to go ahead and deploy a project where we build our own blockchain. We may have specific DA requirements that aren't being met. We may want to have additional cryptocurrency requirements, token requirements, or whatever it is that we need to meet.

We need to look at, you know, why we want to build this blockchain in the first place. So, for example, we may need to have flexibility. And as part of that, we may want to examine our consensus, select our own consensus, and select our own platform, hardware, or software. We may want to choose security features as well, choose a programming language or languages that we use, and control our own code base and updates. One disadvantage of using a pre-existing blockchain, whether permissionless or permissioned, is that you will have updates that are not under your control, but rather under the control of the consortium or the vendor. It also gives you additional flexibility in how you handle, for example, additional features, functions, or users for that matter. The main thing is, for example, is the protocol that you're using open source or not? For example, you might want to consider a fork of another blockchain. Who knows, it might solve some of the problems.

But anyway, you want to control features, which is another good excuse. Now, when it comes to steps for building a blockchain, we want to think about it from the perspective of establishing a use case. We need to go out there and determine why we want a blockchain. In the first case, for example, not every application out there needs a blockchain. If you need speed or high performance, blockchains are not a good use case for that. So you may want to take that off the table. On the other hand, if you need mutability, you need to have even more transparency in some cases, depending on the type of blockchain you're going to use. That may be a great, great use case. If you're already programming, Hyperledger might make the most sense. You want to design your nodes, your services, your APIs, your testing, and then you want to put it all together and release it to production.

Again, the main focus of the exam, which I believe we want to ensure you understand, is to understand some of the reasons why you might not choose an already existing blockchain in production, such as Ethereum Hyperledger, for a quarter. You may want to go with some other hybrid or fork of a blockchain, or just go out and create your own. So whatever that use case comes down to, you need to look at whatever the trade-offs are, right? For example, some of the measures of performance are going to be the transaction time, the volume, and the cost per transaction. Maybe this can't be met by what's on the market right now; who really knows? Another thing is scalability or decentralization. Maybe things just don't match up.

Whatever the trade-offs are, they will almost always be a trade-off between decentralization, security, and scalability, as well as performance. With that said, just realise that on the exam, you just want to understand why you may have to build your own blockchain, and generally, it's because there isn't one that meets your use case. And for the exam, do you understand the process for building a blockchain? Which one of these would be considered the first step, and again, go and look at the practise questions and determine why it is a use case? In this case, D would be the best answer, but let's go and move on to the next module.

15. Segwits and Forks

This is the goal. Let's go ahead and talk about why Segwitz and Forks are areas on the exam you might want to know about. Now when it comes to blockchains, generally, forks are going to be a result of a public blockchain or blockchain such as ethereum or bitcoin that is going to basically split the blockchain, and we'll talk about what exactly that is, the benefits, the pros, and the cons, and why this occurs. Typically, in the cryptocurrency world, This does not happen in the world of permission-based blockchain. So that's not really something that you need to worry about in the private world. This is more or less exclusive to cryptocurrencies. So let's go ahead and talk more about this. What exactly is a fork? Well, a fork is really a change to the software of the digital currency that creates two separate versions of the blockchain and will have a shared history as well.

Typically, one of the histories will be dominant. Now, this can be a permanent or temporary fork; really, most of the forks are going to be permanent, basically. For example, we had bitcoin, bitcoin, cash, ethereum, ethereum, and classic—these are all examples of forks. Essentially, the fork will occur at a specific block height, which is typically when it occurs. And basically, two, it will be as a result of what is known as "snapshot days," and some blockchains, such as Ethereum, may also be referred to as such. But basically, the snapshot is going to occur at a block number, and this will essentially result in a new currency as well. For example, bitcoin, bitcoin, cash, ethereum, ethereum, and classic are two of the most common ones. Now, what is a hard fork, and what is a soft fork? One of the things on the exam you're going to want to definitely make sure you get is the difference between a hard fork and a soft fork is.

So let's talk about a hard fork first. A hard fork is a term that's going to describe a major change to the protocol. Basically, this is going to make all the previously invalid blocks or transactions valid. And the way this works is that basically what will happen is that you'll have competing mining interests in a lot of cases, and one group of miners will go one way, and then another group of miners will go another way. Essentially, this is a method of creating a new coin.

And this is essentially what a hard fork means now: there will be a situation in which miners, for example, will need to upgrade their hardware. So, for example, switching from an ASIC or GPU to a CPU, or vice versa, depending on the situation. But basically, there's going to be an upgrade. More hash power, processing power, memory, or whatever the requirements are, will be required to accommodate. A soft fork is entirely different.

This is really a backward-compatible fork. Basically. For example, you could have a one-meg block that only allows 500K blocks. A change to the software protocol, for example, is where previously valid blocks are now made invalid. Basically, software needs to have a majority of hash power in the network as well. So here's an example of why a software bug could occur in a hard fork. I think the main thing to know and understand is that a soft fork is basically going to be a major upgrade. Or is it a hard fork that's a major upgrade? Is software backwards compatible, or is a hard drive backwards compatible? This is the main area of the exam. I just want to make sure that you understand and appreciate my taking it. And this is an example of a soft fork versus a hard fork. If you haven't taken a look at it, take a look at it. It's on Investopedia as well. Now let's talk about some examples. So for example, a theorem classic, one of the more, I guess, well-known ones, would be a theorem classic. This is a split from Ethereum.

Basically, this occurred after a hard fork. Monero is another good example where there was a hardfork to introduce an upgrade, and as part of that upgrade, it was required to help implement what is called the RCT, which is called ring confidential transactions. This is to improve privacy, and another well-known hard fork is bitcoin cash. This is a hard fork again, orchestrated by part of the community, whereas some of the bitcoin is from bitcoin miners, I should say, who decided to maintain the status quo, whereas others decided to go their own way. Basically, they want to increase the block size.

Soft fork examples BIP 66 This is a fork of the bitcoin signature validation protocol. And then we have the P and the S. This is the software that enables multisignature on the bitcoin network as well. These are examples of soft forks. Now on the exam, I'm going to just advise you to make sure you know these. You'll likely get a question that's going to ask you which one is going to be a soft fork versus a hard fork. So you might want to spend some time figuring out which one is which. Now segway. What exactly is a segway? This is again another term that's really used to sort of describe a scenario where basically the community just decided it was time to create some efficiencies, and as part of that, segregated witness was used in the bitcoin community to help separate transaction signatures. Now why would they want to do that? Because it really enabled better capacity and therefore allowed the miners to add more transactions to the chain, and when they added more transactions, that increased their profitability as well.

Now again, SegWit removes signatures; it creates efficiency; but as part of that, it does what? It increases the security threat. So if you remove the signatures, there's the possibility that that transaction or those transactions in that block could be compromised. Some of the advantages will be similar in both the segment and the exam. Why would we want to have a segment in Bitcoin? Because it will increase scalability, decrease transaction times, enable off-chain protocols, and improve transaction security by reducing malleability. Now again, if you're able to reduce the footprint of your vulnerabilities' capabilities, or actually your vulnerabilities' sort of footprint, I guess, then that should reduce some of the malleability that can occur. Now again, this is a tricky subject and again, themain thing to get out of segue and forks isusually forks and segments are going to occur. In a scenario where you want to, for example, create a segue, you might want to create what's called efficiencies in the block weight. This is basically where you're going to take a mashup of the block size without all the SIG data and then cap it at so many megabytes. Again, this is really done, for example, in Bitcoin, but it's also done in Litecoin.

Litecoin actually was the first to go with SegWit, which was, I believe, a few months before Bitcoin. So, with that said, it's just really difficult to approach a scaling problem, especially when Bitcoin was producing two to three times as many transactions as it was 16 or 17 years ago, for example. But with that said, segwood is really about efficiency; forks are about efficiency as well. And it all comes down to, for example, how do you reduce those transaction times? How do you enable protocols? How do you just, you know, create efficiencies? OK, so I think that's enough about SegWit and forks. You'll absolutely see questions on Segawood and Forks—probably two to three on the exam. As a result, I strongly advise you to get to know them. There are some practise questions as well in this area, and I encourage you to make sure you understand the answers.

16. Objective – When is mining needed and when it is not

This objective. Let's talk about when mining is needed and when it is not. Generally, when we talk about mining, we want to just realise that mining is really focused on processing transactions. That's really what it's all about. Now when it comes to mining, for example, in the world of bitcoin, we're going to have miners that are going to be connected to the network, and these miners are going to use their computers to look for transaction requests. And then, when they get these transaction requests, they're going to start assembling a list of valid transactions.

Then what will happen is that it'll start processing these transactions when the requests start coming in. And the miners are again going to check for a few things, of course, as well. The first thing is that they're going to check to make sure that the digital signature is valid. And the second thing I'm going to check for is to make sure that you haven't spent your inputs. Basically, the inputs are actually what's in your wallet. In other words, if you have five bitcoins, you can't spend one bitcoin. Right?

Again, the goal is to prevent double spending. Now in the world of bitcoin mining, again, it's the process of adding transactions to the ledger. And again, these miners are searching for transactions. They're going to be checking for what? They're going to be checking for two things. The first thing they're going to check is the digital signature. The second thing is that you haven't double spend. So again, there's a lot more to this from a mining perspective, but we just want to clarify why we need mining and how it works.

The first thing, too, when it comes to having a requirement for mining is that we want to prevent double spending. That's really what it's all about. The last bullet point pretty much sums it up: it will try to prevent attempts to respend coins that have already been spent. That's your double-spending issue. Now, bitcoin mining is called mining because it's doing hard work. Now, basically, it's an exertion of resources that's occurring on the bitcoin network by the miners. They're using an insane amount of electricity and computing resources to process transactions. It's basically a marathon between the computers on the network, and bitcoin does use what's called the hash-cash proof-of-work algorithm.

Now, once again, when it comes to the processing of transactions, basically, as we spoke about on the earlier slide, if everything matches up, if the check is good, or, in other words, if the check basically says the signature is good and they haven't double spent and they have the funds to send, then what's going to happen is that the miner will go ahead and complete a block. So the miner is going to go ahead and say, "Okay, this looks good." They're going to go ahead and basically select the valid transactions. Then it will add those transactions to a block, which will then be added to the official blockchain.

Again, a lot more mining is required for this exam. You don't need to understand how the nonsense works or how the Merkel tree works in all of this, but you should understand that we need mining to avoid double spending. Now for the mining rewards. So rewards are given whenever a block is discovered. The discoverer may also award themselves a certain number of bitcoins, which is also agreed upon by everyone in the network, as a reward. Basically, there's a bounty of 25 bitcoins, and this is going to be cut in half every 210,000 blocks.

Now the miners are awarded the fees that are also paid by the users sending the transactions as well.So that's the transaction fee you're paying to send those bitcoins, for example, as well as the fees and added incentive to the miner to try to add that to the blockchain as soon as possible. And here is an additional question as well. Let's move on and go to the next module.

17. Genesis Mining

What I like to do is discuss how mining as a service works and show you an example of how you can participate in a mining as a service solution such as Genesis Mining. I'm currently mining in the Unsol in Genesis. Now, Genesis Mining is located in Iceland, and interestingly enough, they're one of the first professionally built and laid out data centres that have specialised mainly in cryptocurrency mining. And for you to participate in a solution such as this, you would simply create an account and then proceed to set up your mining allocation. In this example, you can see that I have bitcoin mining, ether mining, and manero mining as well. Now, you can also participate in other forms of mining, such as litecoin, dash, and cash. One of the things about these services, such as Genesis, is that some of the cryptocurrency mining capacity fills up quickly, so it's pretty limited.

So what you need to do is look for openings. Like, for example, I could go here to buy hash power, and you could see that everything is out of stock. So, unfortunately, there is no way for you to participate in the recording at this time. But if we go back here to mining allocation, you can see that you can also change your allocation if that's available. You can see bitcoin mineral mining, for example, here. And then I could go over here to payouts, where it shows me the amount of bitcoin, ether, and monero that I'm making per day. And it also tells you the payouts for that as well. And you can buy what's called "hash power." And again, that's something you can participate in. So this is called Genesis mining. This is mining as a service. This is a way for the average person to participate in cryptocurrency mining without having to go out and purchase your own mining rig, get additional alcohol and power, and increase network capacity. And you can participate as little or as much as you want in most cases. But this is just one example. SS Mining.

18. Objective – Byzantine Fault Tolerance

This objective. Let's talk about Byzantine fault tolerance. Now, with Byzantine fault tolerance, this is a technical challenge in the IT world, and it revolves around what was originally known as the Byzantine general's problem. Now, the Byzantine general's problem is essentially where you have, for example, before communications, like radios and even radar to figure out who's who and where they're coming from, telephones, et cetera. How did a bunch of armies coordinate an attack on a castle or a city, for example? And how did General One, General Two, and General Three coordinate? Well, back before we had radios and telephones, there weren't really many options.

You might have had smoke signals or messengers. Now, the challenge with messengers is how they could get captured. The message could be misunderstood by the receiving party. There are numerous difficulties. So basically, the generals have to coordinate the attack, and if they don't do it correctly, then what can happen is that they could lose the battle. Now, when we talk about computers, basically one of the challenges we have is that when we talk about computers, we like to refer to a computer as a node.

And that node is doing what? It's processing some kind of data in the blockchain world; it's processing the blockchain network; is there any activity on that ledger? Basically, if you have a decentralised network, there are challenges because no two nodes can basically guarantee that everything is the same, right? So this is a challenge, and Satoshi Nakamoto solved this issue with what's called the Proof of Work Consensus algorithm. Now, Byzantine fault tolerance is known as a problem in distributed computing. Essentially, you want to have pre-selected generals who will be the ones validating the transactions. Basically, Pvft runs really efficiently. It has high throughput. Hyperledger is a good example. Ripple and Stellar all use a form of BFT as well. When we talk about a Byzantine node, we are referring to a node that may be rogue in the sense that it is not forwarding packages as they should be.

In other words, this is where you might have a messenger, let's say in the Byzantine general issue, that might be relaying the wrong message for whatever reason, could have been hijacked, could have been captured, whatever. But basically, it is really not a good idea to have a Byzantine node, and you need to have a consensus mechanism to prevent that. Hyperledger Fabric does have one, but it doesn't provide that right out of the box. You need to go ahead and deal with your own consensus on how to handle that. Now, Hyperledger does of course have a form of PBFT with Hyperledger, and we'll talk a lot more about Hyperledger in the modules for that specific blockchain. There are some options on whether you want to use a solo approach, which is more for development, or if you want to use a cascade-based approach as well. For example, Indy does have what's called "plenty-based PBFT" as well, so just be aware. But basically, in PBF, each node maintains internal storage. When a node receives a message, it's signed by the node, which then verifies the format. And here are some practise questions as well. Let's go ahead and move on to the next one.

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