Certified Bitcoin Professional Practice Exam

What is a critical factor in ensuring Bitcoin transaction security?

1. The amount of data in the blockchain

2. The hash power of the network

3. The number of users on the platform

4. The efficiency of the coding language used

The correct answer is: The hash power of the network

The hash power of the network is a critical factor in ensuring the security of Bitcoin transactions because it directly relates to the amount of computational power being contributed to the network. Higher hash power means that more miners are actively participating in the process of validating and confirming transactions. This increased competition among miners makes it exceedingly difficult for any single entity to manipulate or attack the network. When hash power is adequate, it helps to secure the network against double-spending attacks. A higher hash rate implies that any potential attacker would need to control a majority of the hashing power (51% attack) to successfully alter transactions or create false blocks. Achieving this would require significant resources and determination, making malicious actions economically unfeasible for most. This is fundamental to the decentralized nature of Bitcoin, ensuring that no one party can override the consensus required for transaction validation. Hence, the security of the Bitcoin network is heavily reliant on its hash power, ensuring that transactions are securely recorded and resistant to fraud.