The "Nothing-At-Stake" Problem That Could Be Realized by Proof of Stake

question 59

Multiple Choice

The "Nothing-at-Stake" problem that could be realized by Proof of Stake networks would be caused by what?

• A) If all of the validator nodes are taken offline
• B) If validator nodes reject all transactions
• C) Validator nodes approving all transactions on old and new software after a hard fork occurs
• D) All of the above

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Definitions:

Profits

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Total Profit

Total profit is the financial gain a business achieves after subtracting total costs from total revenue.

AVC

Average Variable Cost, which is the cost a company incurs to produce each additional unit of product, excluding fixed costs.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.