Blockchain Developer Certification Practice

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Prepare for the Blockchain Developer Certification. Master blockchain concepts with flashcards and multiple choice questions. Explanation-based learning for your success!

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What type of consensus model does Ethereum currently utilize?

Proof of Stake
Nakamoto Consensus
Delegated Proof of Stake
Round Robin Consensus

The correct answer is: Nakamoto Consensus

Ethereum currently utilizes the Proof of Stake consensus model. This transition from the earlier Proof of Work model to Proof of Stake was officially implemented with the Ethereum 2.0 upgrade, known as "The Merge," which took place in September 2022. The Proof of Stake mechanism allows validators to create new blocks and validate transactions based on the amount of cryptocurrency they hold and are willing to "stake" as collateral. This approach significantly improves the network's energy efficiency, scalability, and security while reducing the risks of centralization that are often associated with energy-intensive mining processes. The alternatives, such as Nakamoto Consensus, which underlies Bitcoin's Proof of Work, focus on solving cryptographic puzzles and are less energy-efficient. Delegated Proof of Stake involves a voting system for selecting validators, which is distinct from the participation model in Ethereum’s current structure. Round Robin Consensus, while a valid concept in other contexts, is not utilized by Ethereum. Thus, Ethereum's reliance on Proof of Stake reflects its goals of creating a more sustainable and scalable blockchain network.