Blockchain Developer Certification Practice Exam 2025 – All-In-One Guide to Master Your Certification!

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What does the term 'mining' refer to in the context of blockchain?

The process of creating new cryptocurrencies

The process of validating transactions and adding them to a blockchain

In the context of blockchain, the term 'mining' primarily refers to the process of validating transactions and adding them to a blockchain. This involves miners solving complex mathematical problems using their computational power. When a miner successfully solves these problems, they validate the transactions contained in a block and ensure that all the transactions are accurate and adhere to the rules of the blockchain protocol.

By adding a new block of validated transactions to the blockchain, miners not only maintain the integrity and security of the blockchain but also contribute to the decentralized consensus mechanism that underpins the entire system. This process is crucial as it prevents double-spending and ensures that the same digital currency is not used multiple times.

In addition to validation, miners often receive rewards in the form of cryptocurrency for their contributions, such as newly minted coins and transaction fees from users. This incentivizes them to continue mining and maintaining the network, ensuring its stability and functionality over time.

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The process of deleting outdated blocks

The process of designing blockchain protocols

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