Bitcoin Consensus Mechanism Upgrades Quiz

1. What is the primary focus of the paper `Analyzing Bitcoin Consensus: Risks in Protocol Upgrades`?

• Evaluating the environmental impact of Bitcoin mining
• Discussing the historical development of Bitcoin technology
• Analyzing Bitcoin`s consensus mechanisms and stakeholder risks
• Exploring Bitcoin`s price volatility and market behavior

2. How does Bitcoin`s consensus mechanism make it difficult to change?

• New features can be added without any restrictions or processes.
• The default is no change, and any significant change needs to pass a hurdle.
• The consensus mechanism allows changes to occur instantly and easily.
• Changes are made by majority vote of all users on the network.

3. What are the six distinct stakeholder groups in Bitcoin`s consensus mechanism?

• Investors, Traders, Analysts, and Coders.
• Forks, Validators, Exchanges, and Auditors.
• Merchants, Regulators, Programmers, and Investors.
• Miners, Developers, Users, and Nodes.

4. What is the concept of `State of Mind` in the context of Bitcoin`s consensus mechanism?

• The State of Mind affects the degree that stakeholders engage in the process of finding consensus.
• The State of Mind governs the mining difficulty adjustments in the network.
• The State of Mind determines the maximum block size in Bitcoin transactions.
• The State of Mind dictates the rewards miners receive for their efforts.

5. What is a Flag Day activation in Bitcoin network upgrades?

• A Flag Day activation involves setting a specific future date or block height at which the new rules automatically come into effect.
• A Flag Day activation allows ongoing changes until a specific consensus is reached.
• A Flag Day activation is an event that requires majority voting from users prior to activation.
• A Flag Day activation occurs randomly throughout the year without prior notice.

6. What are the advantages of using a Flag Day activation?

• Advantages include random activation times, undefined rules, and chaos among miners during the transition.
• Advantages include lack of transparency, unpredictable outcomes, and requiring immediate consensus from all stakeholders.
• Advantages include simplicity, ease of implementation, and predictability with a fixed timeline for the upgrade.
• Advantages include increased complexity, unnecessary delays, and dependency on multiple stakeholders for validation.

7. What are the risks and considerations of using a Flag Day activation?

• Risks include guaranteed compatibility with older versions.
• Risks include potential chain splits due to non-upgraded nodes.
• Risks include enhanced security through flexible upgrades.
• Risks include increased speed without requiring consensus.

8. How did BIP34 introduce an upgrade path for versioned transactions and blocks?

• BIP34 implemented an automatic block size increase without any conditions.
• BIP34 introduced an upgrade path by incrementing the version number in the block header.
• BIP34 used a fixed version number and would not allow changes.
• BIP34 mandated all nodes to upgrade immediately with no transition period.

9. What is the mechanism for activating BIP65 and BIP66 upgrades?

• These upgrades were activated through community voting mechanisms before implementation.
• These upgrades were activated solely based on miner agreement without any rule changes.
• These upgrades were activated with BIP34, which had short grace periods for nodes on the network to upgrade.
• These upgrades were activated by immediate network consensus without a grace period.

10. How does BIP9 differ from BIP34?

• BIP9 only permits a single upgrade without multiple signalling options.
• BIP9 requires all nodes to upgrade simultaneously without signaling.
• BIP9 allows miners to signal for multiple upgrades using version bits.
• BIP9 activates upgrades based solely on user consensus without miner input.

11. What is the significance of CheckSequenceVerify (BIP68, BIP112, BIP113) in Bitcoin upgrades?

• CheckSequenceVerify allows for time-locked transactions in Bitcoin, enhancing flexibility and functionality.
• CheckSequenceVerify restricts transaction sizes to prevent network congestion during upgrades.
• CheckSequenceVerify enforces stricter miner penalties for non-compliance during upgrades.
• CheckSequenceVerify eliminates the necessity for miners during upgrades, streamlining the process.

12. What is the purpose of User Activated Soft Forks (BIP8)?

• BIP8 allows for imposition of new transaction fees across the network.
• BIP8 is solely for increasing transaction speeds in Bitcoin.
• BIP8 focuses on enhancing the privacy of Bitcoin transactions.
• BIP8 includes a mechanism to reduce miner vetoes in protocol upgrades.

13. What are the advantages of BIP8?

• Ensures all nodes operate on the same version
• Increases transaction fees and slows down upgrades
• Simplifies mining processes and enhances security
• Prevents miner veto and offers flexibility

14. What are the risks and considerations of BIP8?

• Risks include potential chain splits and lack of flexibility.
• Risks include increased mining costs and guaranteed upgrades.
• Risks include loss of transaction data and faster block processing.
• Risks include improved network speed and security concerns.

15. What does `immutable` imply in the context of blockchain?

• It means transactions cannot be altered once recorded.
• It allows for deletions of transaction history.
• It means every transaction is anonymous and hidden.
• It indicates transactions can be easily modified.

16. What are the benefits of blockchain technology?

• Limited access and poor reliability.
• Enhanced security, transparency, and traceability.
• Reduced efficiency and slow transactions.
• Increased costs and hidden fees.

17. What is the term used for a blockchain split?

• Splitter
• Fork
• Merge
• Chainbreak

18. How do protocol upgrades work on the Internet Computer?

• Protocol upgrades on the Internet Computer involve submitting a proposal in the Network Nervous System (NNS) to change the configuration of the registry. If a majority of voters accept the proposal, the registry is changed accordingly. Each subnet runs multiple nodes, and the consensus protocol is divided into epochs to avoid forks.
• Protocol upgrades are scheduled in advance, with all nodes in the network required to upgrade their software in synchronization without any voting involved.
• Protocol upgrades on the Internet Computer occur automatically without the need for proposals or voting by stakeholders, ensuring immediate changes to the system.
• The Internet Computer implements protocol upgrades through a centralized decision-making process where only developers can enforce changes on the network.

19. What triggers a protocol upgrade on the Internet Computer?

• Changing the block height
• Restarting the nodes manually
• Submitting a proposal in the NNS
• Voting on the proposed code

20. How do nodes coordinate during a protocol upgrade on the Internet Computer?

• Nodes coordinate by querying the NNS registry for updates and switching to the new version at the epoch boundary.
• Nodes automatically upgrade without any user intervention or registry checks.
• Nodes receive instructions via email and implement changes independently at their own pace.
• Nodes upgrade by randomly selecting points during the day to switch versions.

21. What is the role of the Replica and Orchestrator in a subnet during a protocol upgrade?

• The Replica maintains the blockchain software stack, while the Orchestrator downloads and manages the Replica software.
• The Replica processes transactions in real-time, while the Orchestrator scans for network errors.
• The Replica manages the nodes of the subnet, while the Orchestrator handles external communications.
• The Replica handles data storage, while the Orchestrator updates network protocols.

22. How are epochs used in protocol upgrades on the Internet Computer?

• Epochs are used to randomly distribute nodes across the network for better performance.
• Epochs are used to ensure all nodes coordinate and switch their version at the same block height, avoiding forks.
• Epochs are used to assign different roles to nodes based on their capabilities.
• Epochs are used to increase the speed of transaction processing during upgrades.

23. What is the significance of the first block in each epoch during a protocol upgrade?

• The first block triggers a rollback to the previous version if issues arise.
• The first block ensures all nodes synchronize their version before upgrading.
• The first block marks the end of the current epoch for all nodes.
• The first block signifies a complete reset of the network settings.

24. How does the Internet Computer handle protocol upgrades to avoid forks?

• The Internet Computer requires every node to independently decide when to upgrade the protocol.
• The Internet Computer implements upgrades through random selection of nodes.
• The Internet Computer handles protocol upgrades by dividing the consensus protocol into epochs and ensuring all nodes switch their version at the same block height.
• The Internet Computer uses a single block height for all upgrades without epochs.

25. What is the purpose of the registry in the Internet Computer`s protocol upgrade process?

• The registry ensures the security of peer-to-peer connections on the Internet Computer.
• The registry manages the user accounts and balance information of the Internet Computer users.
• The registry stores all the configuration of the Internet Computer, including the desired protocol version, list of nodes, and cryptographic key material.
• The registry tracks transaction histories for all smart contracts on the Internet Computer.

26. How are proposals submitted and voted on in the Internet Computer`s NNS?

• Votes are conducted through private messaging among users.
• Only developers can submit proposals for voting.
• Proposals are submitted to the NNS and voted on by staked ICP holders.
• Proposals are automatically accepted without votes.

27. What happens if a majority of voters reject a proposal in the Internet Computer`s NNS?

• The registry remains unchanged, and no protocol upgrade occurs.
• A supermajority is required for further proposals.
• The proposal is automatically accepted with minor changes.
• The voters initiate a new proposal immediately.

28. What is the benefit of using a versioning system for configuration in the Internet Computer?

• The benefit is that it eliminates the need for proposals, making upgrades automatic without any governance.
• The benefit is that it reduces the overall size of the blockchain data, allowing for more efficient storage.
• The benefit is that it requires significantly less communication between nodes during an upgrade, speeding up the process.
• The benefit is that each mutation to the configuration shows up as a new version in the registry, allowing for clear tracking and management of changes.

29. How do subnets manage different configurations in the Internet Computer?

• Subnets only rely on the main network to manage their configurations without any updates.
• Subnets operate independently and cannot change configurations based on the registry updates.
• Subnets may actually be running one of the older configurations, but they can switch to the new version once the registry is updated.
• Subnets are fixed in their configurations and must remain unchanged at all times.

30. What is the role of the Orchestrator in managing the Replica software?

• The Orchestrator configures the mining hardware for efficient performance.
• The Orchestrator oversees the financial transactions of the nodes in the network.
• The Orchestrator downloads and manages the Replica software, ensuring it is updated according to the latest registry version.
• The Orchestrator validates all network transactions before they are processed.