FINA Final
What does it mean when fiat currency is referred to as "Legal Tender"? It is convertible into a specific commodity It has a fixed exchange rate It is accepted for payment of debts It is backed by a physical reserve
It is accepted for payment of debts.
Startup "EcoWave" is planning to launch an Initial Coin Offering (ICO) to fund its new renewable energy platform. The founders are discussing the regulatory aspects and benefits of an ICO compared to traditional fundraising methods. Which of the following statements about EcoWave's potential ICO is INCORRECT? By conducting an ICO, EcoWave can sell a portion of its cryptocurrency to early backers in exchange for fiat money or other cryptocurrencies An ICO would provide a regulated method for EcoWave to crowdsource funding from the public Launching an ICO allows EcoWave to bypass stringent capital-raising processes typically mandated by venture capitalists or banks An ICO does not require EcoWave to involve investment banks to manage paperwork and orchestrate the offering
An ICO would provide a regulated method for EcoWave to crowdsource funding from the public
What is Aave? A decentralized lending platform built on top of the Ethereum network A blockchain that maintains the supply of two cryptocurrencies: LUNA and UST A digital currency that is pegged to the price of USD A digital currency that is pegged to the price of Bitcoin
A decentralized lending platform built on top of the Ethereum network
Which of the following would be considered a stablecoin? A digital currency that is pegged to the price of Ethereum A digital currency that is pegged to the price of Bitcoin A digital currency that is pegged to the price of Dogecoin A digital currency that is pegged to the USD
A digital currency that is pegged to the USD
In the context of money, what does "unit of account" mean? Facilitating barter transactions A standard measure for pricing goods and services Earning interest on savings Convenient storage of value
A standard measure for pricing goods and services.
What is role of an automated market maker in Decentralized Finace (DeFi) apps? All of the above A system that ensures there is always enough liquidity to make trades A protocol that automatically makes trades for a user A code function that automatically lists new markets on an exchange
A system that ensures there is always enough liquidity to make trades
Your team is building a decentralized gaming platform where players earn rewards by completing tasks. You decide to launch an ICO to fund the project. Question: What blockchain would you choose to launch the ICO, and why? A) Ethereum - It has the most robust smart contract functionality. B) Solana - It offers fast transaction speeds and lower fees. C) Bitcoin - It's the most recognized cryptocurrency. D) Polkadot - It offers cross-chain compatibility and is designed forscalability.
A. or B.
How does Aave's liquidity pool work? It promises one UST redeemable for $1 worth of LUNA, and vice versa It promises one UST redeemable for $1 worth of BTC, and vice versa It promises one UST redeemable for $1 worth of ETH, and vice versa Anyone in the world can add and subtract cash from a money pool in exchange for interest
Anyone in the world can add and subtract cash from a money pool in exchange for interest.
When a customer makes a purchase with a Credit Card, certain steps are followed. What is the correct sequence of the main steps in this payment process? Approval→ Authorization → Clearing → Settlement Clearing → Authorization → Approval → Settlement Approval→ Authorization → Settlement → Clearing Authorization→ Approval → Clearing → Settlement
Authorization→ Approval → Clearing → Settlement
Fiona observes that Chainlink has an increasing NVT ratio over several months, while transaction volumes remain constant. What might this trend suggest about Chainlink's market valuation? A) Chainlink is becoming undervalued and may be a good buy. B) Chainlink might be overvalued, as market capitalization is growing faster than transaction volume. C) The network is experiencing higher utility and adoption. D) The NVT ratio is unreliable and shouldn't influence investment decisions.
B.) Chainlink might be overvalued, as market capitalization is growing faster than transaction volume.
You've launched an ICO, but a bug in the smart contract prevents token distribution to some investors. Question: What could be a solution to this issue if the smart contract is immutable? A) Wait for the blockchain to fix the problem. B) Deploy a new contract and manually distribute the tokens. C) Refund all the investors and cancel the ICO. D) Manually alter the existing smart contract code.
B.) Deploy a new contract and manually distribute the tokens.
You are designing a new cryptocurrency (token) for a decentralized marketplace. You must decide between a fixed supply or a mintable token supply. Question: What would be the main advantage of a fixed supply token? A) It allows you to create more tokens when needed to incentivize users. B) It creates scarcity, potentially increasing the token's value overtime. C) It allows easier integration with other blockchains. D) It prevents any losses from failed transactions.
B.) It creates scarcity, potentially increasing the token's value over time.
Bianca is analyzing Ripple using the stock-to-flow (S2F) model. She finds that the existing stock is 10 million coins, and the annual new supply (flow) is 500,000 coins. She calculates the S2F ratio. What does a high S2F ratio indicate about Ripple according to this model? A) It is less scarce and likely to decrease in value. B) It is more scarce and may be considered valuable due to its scarcity. C) It has a high inflation rate, making it less attractive. D) The S2F ratio is insignificant and should be ignored.
B.) It is more scarce and may be considered valuable.
A multinational corporation frequently faces counterparty risk and delays when making international payments through traditional banking systems.Which fintech solution is specifically designed to address this problem? A. Venmo for business transactions. B. Ripple's XRP and RippleNet for cross-border payments. C. Using credit cards with international capabilities. D. Implementing biometric payments for authentication.
B.) Ripple's XRP and RippleNet for cross-border payments.
Which of the following best explains how mobile payment systems like M-PESA address economic frictions in developing countries? A. They require advanced smartphones and internet access. B. They eliminate the need for traditional banking infrastructure. C. They use biometric authentication to secure transactions. D. They provide high-interest savings accounts for users.
B.) They eliminate the need for traditional banking infrastructure.
You are developing a platform for real estate transactions using smart contracts. The contract will execute once all terms are met, such as the transfer of payment and legal approval. Question: What is one potential risk of using smart contracts? A) If the smart contract is not coded correctly, it may fail to execute even if all conditions are met. B) Legal systems are fully prepared to handle disputes involving smart contracts. C) Smart contracts are manually controlled, making them prone to human error. D) The platform may reject fiat currency, limiting potential buyers.
A.) If the smart contract is not coded correctly, it may fail to execute even if all conditions are met.
Carlos notices that Solana has a market capitalization of $2 billion and a daily transaction volume of $100 million. He calculates the Network Value to Transactions (NVT) ratio and finds it to be 20. If the average NVT ratio for similar cryptocurrencies is 50, what might this suggest about Solana? A) It is undervalued compared to its transaction volume and may be a good investment opportunity. B) It is overvalued and likely to decrease in price. C) It has no active users, indicating low network utility. D) The NVT ratio is too low to make any meaningful conclusion.
A.) It is undervalued compared to its transaction volume and may be a good investment opportunity.
In the aftermath of a natural disaster, the banking system in a region is crippled. Community leaders suggest adopting digital currencies. Which of the following supports this suggestion? They eliminate intermediaries, lowering transaction fees Digital currencies can operate when traditional systems are down They reduce dependence on unstable banks. All of the above
All of the above
What are the benefits of a liquidity pool in a decentralized finance ecosystem? Lower transaction fees compared to traditional banking systems Faster transaction times compared to traditional banking systems Reduced volatility relative to unpegged cryptocurrencies like Bitcoin All of the above
All of the above
What does Decentralized Finance (DeFi) involve? Decentralized exchanges (DEX) Executing smart contracts Lending and borrowing assets to and from other users All of the above
All of the above
Smart Contract characteristics DO NOT include Fast and cost-effective Alterable A high degree of accuracy Transparency
Alterable
Maria works as an engineer in Country A and regularly sends money to her family in Country B. She notices that international money transfers through traditional banks are slow, taking several days to complete, and incur high fees due to multiple intermediaries and unfavorable exchange rates. She wishes there were a faster and more cost-effective way to send money home. Question: Which technological solution could best address Maria's problem by enabling quicker and cheaper cross-border transactions? A) Using a Central Bank Digital Currency (CBDC) issued by Country A's central bank B) Utilizing a cryptocurrency like Bitcoin C) Sending money orders through international postal services D) Opening a joint bank account with her family members in Country B
B.) Utilizing a cryptocurrency like Bitcoin
Emma prefers using decentralized exchanges (DEXs) for trading cryptocurrencies due to security concerns. How do DEXs like the one Emma uses ensure the security of her funds? By allowing her to trade directly from her personal wallet without depositing funds By requiring deposits into a centralized wallet managed by the exchange By implementing multi-signature authentication for all transactions By storing funds in cold storage to prevent hacking
By allowing her to trade directly from her personal wallet without depositing funds.
How does the Byzantine Generals Problem simulate the challenge of unreliable nodes in a distributed network? By introducing cryptographic algorithms By assuming some nodes may behave maliciously or fail By incorporating random number generators By implementing fault-tolerant routing protocols
By assuming some nodes may behave maliciously or fail
How does money act as a store of value in economic systems? By holding wealth in a readily exchangeable form By facilitating barter transactions By serving as a unit of account By earning interest over time
By earning interest over time
Alice sets out to transform the local artisanal pottery industry, she decides to implement blockchain technology in her supply chain management. What primary benefit does Alice expect to achieve? By enhancing data security and transparency, Alice can ensure that her pottery pieces are authentic and traceable By speeding up the production process, Alice can meet the increasing demand for her pottery products By reducing the need for inventory tracking, Alice can focus more on creative design aspects By eliminating intermediaries in logistics, Alice can streamline the production process and reduce costs
By enhancing data security and transparency, Alice can ensure that her pottery pieces are authentic and traceable.
Bob ventures into the world of online retail, aiming to disrupt traditional payment systems by integrating blockchain technology. What significant advantage does Bob hope to achieve? By centralizing control over financial transactions, Bob can maintain full autonomy over his online store By increasing transaction fees and processing times, Bob can generate more revenue from each sale By limiting access to financial services for unbanked populations, Bob can target high-value customers By reducing the risk of fraud and chargebacks, Bob can build trust and loyalty among his customers
By reducing the risk of fraud and chargebacks, Bob can build trust and loyalty among his customers.
How does a decentralized network prevent double spending in digital currencies? Through the use of smart contracts By relying on consensus mechanisms like Proof of Work or Proof of Stake By involving a central authority in all transactions By requiring users to confirm their identity
By relying on consensus mechanisms like Proof of Work or Proof of Stake
How do participants in a Proof of Work system contribute to the network? By voting on transactions By validating user identities By solving complex mathematical puzzles By holding a stake of cryptocurrency
By solving complex mathematical puzzles
Daniel wants to trade cryptocurrencies directly with other individuals without intermediaries. How do decentralized exchanges facilitate this peer-to-peer trading? By requiring users to physically meet and exchange cryptocurrencies By using centralized order matching engines By relying on third-party escrow services to secure transactions By using smart contracts to automate order matching and settlement
By using smart contracts to automate order matching and settlement.
You want to create a crowdfunding campaign using Smart Contracts. Funds will only be released if a certain funding goal is met by a specific deadline. Question: How would you structure the smart contract to refund investors if the goal is not met? A) Transfer the funds directly to the team regardless of the goal. B) Allow manual control over the funds to decide later if refunds should be issued. C) Set up the contract to hold the funds and automatically refund if the deadline passes without reaching the goal. D) Release funds in small batches before the goal is reached.
C.) Set up the contract to hold the funds and automatically refund if the deadline passes without reaching the goal.
What happens to the difficulty level of mining in a cryptocurrency network like Bitcoin when more miners join the network? A) The mining difficulty decreases to make mining more accessible. B) The mining difficulty remains constant regardless of the number of miners. C) The mining difficulty increases to maintain a consistent rate of block creation. D) The mining difficulty adjusts randomly without any specific pattern.
C.) The mining difficulty increases to maintain a consistent rate of block creation.
How does the Byzantine Generals Problem relate to real-world applications, such as blockchain technology? It focuses on optimizing data storage in distributed databases It influences cryptography standards It addresses issues of network latency It demonstrates challenges in achieving consensus in a decentralized network
It demonstrates challenges in achieving consensus in a decentralized network.
What makes Terra's UST different from other major stablecoins? It is backed by an algorithm It is backed by a combination of fiat currencies and other cryptocurrencies It is backed by other cryptocurrencies like Bitcoin or Ethereum It is backed by fiat currencies like the U.S. Dollar or Gold
It is backed by an algorithm
Terra is a decentralized marketplace ecosystem, what would be one benefit of using Terra It is based on open-source technology, so it can be used without any investment It is not under a paid license to operate and therefore it is managed better It is tamper-proof, resilient to being shut down and trustworthy due to smart contracts It is relatively cheap due to the use of cryptocurrency and is very accessible
It is tamper-proof, resilient to being shut down and trustworthy due to smart contracts
Why is the concept of a "avalanche effect" important in hash functions? It means small changes in input result in significantly different outputs It limits the number of possible hash values It determines the length of the hash output It ensures a reversible process
It means small changes in input result in significantly different outputs.
Maria is interested in investing in a new blockchain project called "HealthChain" that is launching an Initial Coin Offering (ICO). She downloads the project's whitepaper to learn more. What primary purpose does the whitepaper serve for Maria as a potential investor? It provides a technical explanation of HealthChain's underlying blockchain technology It acts as a legal document outlining the terms and conditions of the ICO It outlines HealthChain's vision, objectives, and development roadmap It details the financial projections and revenue models of HealthChain
It outlines HealthChain's vision, objectives, and development roadmap.
How does Terra's algorithmic stablecoin work? It promises one UST redeemable for $1 worth of ETH, and vice versa It promises one UST redeemable for $1 worth of BTC, and vice versa It promises one UST redeemable for $1 worth of DOGE, and vice versa It promises one UST redeemable for $1 worth of LUNA, and vice versa
It promises one UST redeemable for $1 worth of LUNA, and vice versa.
In the Terra ecosystem, which of the following is true? Both LUNA and UST are the native coins LUNA is the stablecoin and UST is the native coin LUNA is the native coin and UST is the stablecoin Both LUNA and UST are stablecoins
LUNA is the native coin and UST is the stablecoin
What obstacle does one face in implementing blockchain technology in managing supply chains? Lack of scalability Limited data transparency Increased susceptibility to fraud High transaction costs
Lack of scalability
What term describes the process of creating a new block and adding it to the blockchain in a Proof of Work system? Consensus Block validation Mining Hashing
Mining
What is Fiat Money? Money with intrinsic value usually backed by a physical commodity Money without or very little intrinsic value Digital currency used in blockchain transactions Money that can be also consumed
Money without or very little intrinsic value
Can dApps be built on Bitcoin? Of course, it is the most popular blockchain and cryptocurrency No, the bitcoin blockchain does not support smart contracts No, the bitcoin blockchain is too expensive due to the rise in the value of Bitcoin Yes, the Bitcoin blockchain is attack resistant and hence the best blockchain for smart contracts
No, the bitcoin blockchain does not support smart contracts
When a record is submitted in a blockchain, how can you alter it? You need the public and private key to modify the record Once submitted, records cannot be altered Only smart contracts have the right to modify the record Only a miner has the right to modify a record in a certain timeframe
Once submitted, records cannot be altered
What do dApps work like? Ordinary apps Correct answer Desktop based applications Legally binding contracts Web-based applications
Ordinary apps
You are creating a governance token for a decentralized autonomous organization (DAO). Token holders can vote on decisions for the project.Question: What is a potential drawback of using governance tokens? A) Token holders might be inactive, leaving decisions in the hands of a few. B) Governance tokens can never be traded. C) Token holders can't vote anonymously. D) Voting power cannot be adjusted based on the number of tokens held
A.) Token holders might be inactive, leaving decisions in the hands of a few.
What role do miners play in a Proof of Work blockchain? Voting on network upgrades Adding transactions to the ledger Deciding on consensus rules Creating new cryptocurrency
Adding transactions to the ledger.
How do Zelle, Venmo, Paypal make money if peer-to-peer money transfer is free? All of the above They earn an interchange fee on international transactions A fee is charged from the merchant in case of commercial transactions They earn a fee from providing marketers with consumer spending behavior
All of the above
What is faster PoW or PoS?
Proof of Stake is generally faster than Proof of Work. Bitcoin: 10 min, Ethereum: 12-25 seconds.
During a discussion, Brian mentions investing in Dogecoin. How is Dogecoin best categorized? A "meme" coin or altcoin. A non-fungible token (NFT). A stablecoin A fiat currency
A "meme" coin or altcoin
Blockchains can perform user transactions _____ intermediary. With the help of a third party Without involving any authentication Without involving any third party Without involving any ownership
Without involving any third party
When is a blockchain permissioned?
A blockchain is permissioned when its participants are pre-selected or subject to gated entry based on satisfaction of certain requirements or on approval by administrator. A permissioned blockchain may use a consensus protocol for determining what the current state of a ledger should be, or it may use an administrator or sub-group of participants to do so.
When is a blockchain permissionless?
A blockchain is permissionless when anyone is free to submit messages for processing and/or be involved in the process of reaching consensus. While a permissionless blockchain will typically use a consensus protocol to determine what the current state of the blockchain should be, a blockchain could equally use some other process to update the ledger.
What is a Node? An exchange for cryptocurrencies The first block of a blockchain A line in a distributed ledger A computer on a blockchain
A computer on a blockchain.
What is the anatomy of a smart contract?
1.) Identify agreement 2.) Set Conditions 3.) Code the Business Logic 4.) Encryption & Blockchain Technology 5.) Execution and Processing 6.) Network Updates
Mia wishes to transfer money directly to a friend without intermediaries. Which payment method allows for a truly peer-to-peer transaction? Cash Check Credit Card Bank Wire Transfer
Cash
What is a common property of a good cryptographic hash function? Collision resistance Variable output size Reversibility Dependency on the input length
Collision resistance
Which of the following is a stablecoin NOT backed by? Physical commodities like gold or precious metals Fiat currency like USD or EUR Other cryptocurrencies like Bitcoin or Ethereum Commercial real estate
Commercial real estate
Summarize the difference between cryptocurrency vs tokens
Cryptocurrency is like native money (Bitcoin) in its own network. Tokens on the other hand are built on top of another system and can represent anything from in-app currency to rewards or ownership.
In a blockchain, what are the blocks linked together with? Decentralized nodes Physical chains Cryptographic hashes Correct answer Smart contracts
Cryptographic hashes
An artist wants to sell their digital art online and is considering accepting Bitcoin as payment. They're also exploring creating and selling NFTs for their work.Question: What are the benefits of using NFTs over Bitcoin for selling digital art? A) NFTs can authenticate and prove ownership of the artwork, while Bitcoin is just a currency. B) Bitcoin allows instant payments, but NFTs provide more long-term value through royalties. C) NFTs give the artist the ability to set resale royalties, while Bitcoin payments are one-time transactions. D) All of the above.
D.) All of the above.
Which of the following factors primarily determines the speed of a blockchain? A) Block Size - Larger blocks can contain more transactions but maytake longer to process. B) Consensus Mechanism - Proof-of-Work vs. Proof-of-Stake canaffect transaction speed. C) Network Latency - The time it takes for data to propagate acrossthe network nodes. D) All of the above.
D.) All of the above.
What distinguishes a Decentralized Autonomous Organization (DAO) from a traditional corporation? DAOs operate without human intervention, while corporations rely on human management DAOs are regulated entities subject to government oversight, while corporations are not DAOs use blockchain technology and smart contracts to automate decision-making and operations DAOs are governed by a centralized authority, while corporations have decentralized decision-making structures
DAOs use blockchain technology and smart contracts to automate decision-making and operations
Which of the following is NOT a feature of modern payment systems? Decentralized control Instant fund transfers Irreversible transactions Cross-border payment capabilities
Decentralized control
What is the primary function of BitPay in the cryptocurrency ecosystem? Providing cryptocurrency wallets for users Enabling merchants to accept cryptocurrency payments Facilitating peer-to-peer cryptocurrency trading Offering cryptocurrency lending services
Enabling merchants to accept cryptocurrency payments
Smart contracts are legally binding True False
False
ICOs are always used to raise funds for dApps? True False
False (ICOs can raise funds for various projects)
An ICO must take place on the Ethereum blockchain. True False
False (ICOs can take place on various blockchains)
Jacob wants to settle a private debt using his country's fiat currency. Which statement about fiat currency is INCORRECT in this context? Fiat currency is legal tender for public debts only; private debts require other means Fiat currency can be used to pay taxes. Its value is influenced by central bank monetary policy Fiat currency is legal tender for both public and private debts.
Fiat currency is legal tender for public debts only; private debts require other means
What powers the Ethereum Virtual Machine? Bitcoin UST Ethereum Gas
Gas
What does a block in a blockchain consists of? Hash point, time stamp, transaction data Blockchain name, IP of owner, transaction data Hash point, time stamp, IP of owner Hash point, IP of owner, transaction data
Hash point, time stamp, transaction data.
Which of the following is a a challenge associated with Proof of Work but not typically Proof of Stake? Potential for centralization Dependence on token holdings Need for regular software upgrades High energy consumption
High energy consumption
A developer is choosing between Ethereum and Bitcoin for a new application. Which advantages does Ethereum have over Bitcoin? I. It can store and execute code via smart contracts. II. It uses proof-of-stake, reducing resource waste. III. Its blockchain is private, enhancing security. I and II only All of these I only II and III only
I and II only
Why are delays in current payment systems considered beneficial? They facilitate double spending, thereby stimulating economic growth Delayed payment systems afford payers the opportunity to earn additional interest income They enable the detection of fraud and the ability to halt or retract payments. Delays in payment systems are unfavorable as they impede economic activity
They enable the detection of fraud and the ability to halt or retract payments.
Olivia notices a price difference for Bitcoin between two exchanges and considers arbitrage. What significant challenge might Olivia face in executing arbitrage in cryptocurrency markets? Brokers receive uniform pricing, eliminating arbitrage opportunities Time delays in blockchain transaction confirmations may hinder timely arbitrage Arbitrage is impossible because all trades occur on a single exchange. Short selling is prohibited in crypto markets, preventing arbitrage
Time delays in blockchain transaction confirmations may hinder timely arbitrage.
Which of the following is NOT considered a purpose of Finance? To be able to construct portfolios of long-term and short-term funds To be able to buy goods and services To allows savers and borrowers to exchange money To be able to manage one's personal wealth
To be able to construct portfolios of long-term and short-term funds.
In a Proof of Stake (PoS) system, what is at stake for participants in terms of network security? Voting rights Token holdings Mining equipment Computational power
Token holdings
Sophia is evaluating the drawbacks of using decentralized exchanges. Which of the following is a notable disadvantage she should consider? Past transactions can be altered via consensus Funds can be lost if the exchange is hacked Smart contracts prevent the use of automated trading strategies Trading fees depend on blockchain "gas fees," which can be high.
Trading fees depend on blockchain "gas fees," which can be high.
What is a smart contract? Offline contract stored on a special USB drive Online contracts stored in a digital wallet Digital contracts stored on a protected website Programs stored on a blockchain that run when predetermined conditions are met
Programs stored on a blockchain that run when predetermined conditions are met.
What is the purpose of a private key in blockchain cryptography? Encrypting data on the blockchain Verifying transactions on the network Providing access and control over digital assets Generating new blocks
Providing access and control over digital assets
Which of the following is NOT a possible use case for DeFi Automated market making of less traded digital assets Combining various financial products via financial engineering Providing an easy to use bank account for everyone irrespective of their location Eliminating the need for financial intermediaries such as investment banks
Providing an easy to use bank account for everyone irrespective of their location
How does the concept of transparency manifest in blockchain networks? Providing open and verifiable access to data Concealing transaction details Restricting access to authorized nodes only Allowing private data access
Providing open and verifiable access to data.
What is the difference between a public key and a private key in a crypto wallet? Public keys are used for sending digital assets, while private keys are used for accessing them Public keys and private keys have no difference Public keys are used for accessing digital assets, while private keys are used for sending them Public keys are used for signing transactions, while private keys are used for verifying transactions
Public keys are used for sending digital assets, while private keys are used for accessing them.
What is the main function of dApps (Decentralized Apps) Run smart contracts in the user interface of a standalone application Support applications that run on multiple cloud providers with a single user interface Run smart contracts on a peer-to-peer (P2P) network Manage cryptocurrencies
Run smart contracts on a peer-to-peer network
Smart Contracts can be executed without human intervention once deployed. True False
True (Smart contracts execute automatically once conditions are met)
Who created Bitcoin?
Satoshi Nakamoto
FinTech Innovations" plans to launch an ICO but is concerned about regulatory challenges that could impact both the company and its investors. Which regulatory challenge poses the greatest risk to participants in FinTech Innovations' ICO? Taxation laws related to cryptocurrency transactions Compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements Intellectual property rights infringement claims by third parties Securities regulations governing the offering and sale of tokens
Securities regulations governing the offering and sale of tokens
What is coin "burning"? A way to transfer cryptocurrencies to financial exchanges Sending coins to an address that doesn't exist Removing the coins from the blockchain by a consensus mechanism Redeeming coins for cash like USD
Sending coins to an address that doesn't exist
What is the name of the language used within Ethereum to implement smart contracts? Python Solidity Java C++
Solidity
Which of the following features distinguishes Central Bank Digital Currencies (CBDCs) from Cryptocurrencies like Bitcoin? Programmability Anonymity Decentralization Stability
Stability
OpenSource DAO" operates as a Decentralized Autonomous Organization on a blockchain network. They are planning to issue new tokens to adjust the supply. Who has the authority to decide on issuing or redeeming tokens in OpenSource DAO? An external regulatory body Senior management executives. Stakeholders using a Proof-of-Stake consensus protocol The organization's Board of Directors
Stakeholders using a Proof-of-Stake consensus protocol
A blockchain startup consults a legal expert to determine if their token offering might be considered a securities offering under U.S. law. What test will the legal expert apply to make this determination? The SEC Cryptocurrency Evaluation The Token Compliance Assessment The Turing Test The Howey Test
The Howey Test
After years of cinematic exploration, countless movie nights, and heated debates with friends, Nils's favorite movie of all time remains a mystery. Legend has it that Nils's journey began with a VHS tape of a certain action-packed blockbuster. However, as fate would have it, he stumbled upon a hidden gem. Nils found himself inexplicably drawn to the characters, especially the leaders. So, what is Nils's favorite movie of all time? The Big Short The Godfather The Wolf of Wall Street The Lord of the Rings: The Fellowship of the Ring
The Wolf of Wall Street
In blockchains that use a Proof-of-Stake protocol, the staking rewards are usually paid out in: Ethereum (ETH) Tether (USDT) Bitcoin (BTC) The cryptocurrency being staked
The cryptocurrency being staked
Lisa invests in tokens during an ICO for a new decentralized application platform. She wants to understand what factors will influence the future value of her tokens. Which factor is most likely to determine the value of the tokens Lisa purchased? The future profitability of the platform and dividends paid to token holders The platform's usage level and the token's popularity on other platforms The initial price set by an investment bank during the ICO The present value of future cash flows according to traditional valuation principles
The platform's usage level and the token's popularity on other platforms.
Which of the following statements are correct about Proof-of-Stake? Proof of Stake systems are less energy efficient and are less costly but more proven The probability of validating a new block is determined by how large of a stake (number of coins) a miner possesses The probability of validating a new block is determined by how much computational work is done by the miner To add each block to chain, miners must compete to solve difficult puzzles using their computer processing power
The probability of validating a new block is determined by how large of a stake (number of coins) a miner possesses.
How does the relationship between a public key and a private key work in a cryptographic system? The public key encrypts, and the private key decrypts Both keys are used for decryption The private key encrypts, and the public key decrypts Both keys are used for encryption
The public key encrypts, and the private key decrypts.
Which of the following is NOT correct according to the definition of the Hash Function? From Hash(X) you can't determine X There can be an X and Y where Hash(X)=Hash(Y) From Hash(X) and part X you can't find X Small change in X and Hash(X) changes significantly
There can be an X and Y where Hash(X) = Hash(Y)
What is the primary benefit of using smart contracts? They are self-executing They are cheap to create They are legally binding They are easy to modify
They are self-executing
A merchant uses BitPay, which converts fiat to crypto and back to fiat. What is the primary risk in this payment process? Scalability issues due to system complexity Changes in fiat currency value due to interest rates Slow transaction speeds causing delays Volatility of the cryptocurrency during the transaction
Volatility of the cryptocurrency during the transaction
