ITPEC FE Morning April 2023 Question 71
ITPEC FE Morning April 2023 — Question 71 of 80
Cryptocurrency Mining — identify the definition of blockchain-based mining.
Mining is the process of validating and recording transactions on a blockchain by solving computational puzzles. Participants (miners) are rewarded with cryptocurrency for this work.
This matches (c): obtaining cryptocurrency as a reward for participation in checking or record calculation of transactions.
Why not others:
- (a) — describes using crypto for payments in physical stores, not mining
- (b) — describes trading crypto for capital gains, not mining
- (d) — describes transferring money via crypto, a basic transaction
Key rule: Mining = verifying/recording transactions on blockchain → earning crypto as reward.
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