CFA Level I · CFA Level I Exam · Introduction to Digital Assets
Compared with a permissionless network, a permissioned network is most likely to offer which advantage?
A permissioned network most likely offers faster governance decisions and rule changes, because a known, limited group controls it and can agree on updates quickly. Censorship resistance and anonymity are typical strengths of permissionless networks, which lack a central controlling authority.
- AGreater censorship resistance
- BFaster governance decisions and changes to rulesCorrect
- CStronger guarantee of anonymity for all validators
Explanation
Because a known group controls the permissioned network, rule changes and disputes can be resolved by a central or consortium authority more quickly. Censorship resistance and validator anonymity are strengths of open permissionless networks, not permissioned ones.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to Digital Assets shows your real accuracy, how long you take and where you lose marks.
More Introduction to Digital Assets questions
- A proof-of-work cryptocurrency's miners face rising electricity costs, and many unprofitable miners shut down, reducing the network's comput…
- Compared with investing in a spot cryptocurrency directly, an investor who buys shares of an exchange-traded product that holds the cryptocu…
- Compared with a centralized exchange, a decentralized exchange (DEX) that uses smart contracts most likely:
- An investment manager wants to hold digital assets for clients while minimizing the risk of online hacking. The storage approach most likely…
- Compared with a centralized exchange, a decentralized exchange (DEX) most likely:
- Which feature most likely distinguishes a stablecoin that is fiat-collateralized from an algorithmic stablecoin?