FIN6457C.final

What is the difference between a coin and a token? There is no difference, these two words can be used indifferently in the blockchain/crypto industry A coin does not have a use case, unlike tokens A token does not have a use case, unlike coins A token is a crypto asset that lives on a smart contract blockchain, unlike coins A coin is a crypto asset that lives on a smart contract blockchain, unlike tokens

A token is a crypto asset that lives on a smart contract blockchain, unlike coins

Which of the following is the most accurate description of a non-fungible token (NFT)? A coin offering used to raise funds for start-ups A token linked to shares in a company A token that represent unique collectibles in the physical or digital world A token promised to funders that are redeemable and interchangeable

A token that represent unique collectibles in the physical or digital world

Which of the following is the most accurate description of a non-fungible token (NFT)? ◦ A token promised to funders that are redeemable and interchangeable ◦ A token linked to shares in a company ◦ A token that represent unique collectibles in the physical or digital world ◦ A coin offering used to raise funds for start-ups

A token that represent unique collectibles in the physical or digital world

Why do people buy NFTs? ◦ NFTs have generated billions of dollars ◦ They gain the rights to the unique token on the blockchain ◦ Due to urging price of Bitcoin and distrust in the US dollar ◦ All of the above

All of the above

What does an NFT look like? ◦ Similar to Ethereum ◦ Similar to Bitcoin ◦ Anything like digital art, music, painting and more

Anything like digital art, music, painting and more

Which of the following is needed if you want to query something like an account balance at block #1? All nodes store can perform this task Full node Light client node Archive node

Archive node

Which of the following stores a complete history of the Ethereum blockchain states? Full node Archive node All nodes store the full history Light client node

Archive node

Why do we need blockchain or decentralized distributed ledgers for NFTs? ◦ Because Bitcoin is the new gold ◦ Because Dogecoin is going to the moon ◦ Because blockchain is a distributed database that allows parties to transact in a trustless and seamless way

Because blockchain is a distributed database that allows parties to transact in a trustless and seamless way

What are controlled by smart contracts that are executed by the Ethereum Virtual Machine? Contract accounts Archive nodes Full nodes Light nodes

Contract accounts

What is the advantage of the ERC-1155 over former NFT standards on the Ethereum blockchain? ERC-1155 has historically been the NFT gold standard Unlike former Ethereum standards, ERC-1155 standard is exclusively compatible, focused, and specialized on non-fungible tokens ERC-1155 eliminates gas fees, making each transaction cheaper ERC-1155 standard includes a function that checks whether a transaction is valid or not

ERC-1155 standard includes a function that checks whether a transaction is valid or not

Which standard covers the tokenization of fungible assets on Ethereum? • ERC-725 • ERC-721 • ERC-20 • ERC-987

ERC-20

What is the largest unit of Ether? Finney Einstein Ether Wei

Einstein

A crypto project features 100,000,000 tokens and these tokens are currently sold at $0.20 at a private sale. The tokens are scheduled to be sold at $1 at the ICO in 1 year. The team & advisors own 20% of the original supply of tokens, subject to a 4-year linear annual vesting schedule starting at present time. What is the current fully diluted market capitalization (FDMC) of the project? - FDMC = $0 because the token is not traded yet - FDMC = $20M - FDMC = $100M - FDMC = $2M - FDMC = $10M

FDMC = $20M

Ethereum is the only token that uses the Ethereum blockchain? (T/F)

False

In exchange for using their computing power to add a new block to the blockchain, a miner is rewarded with newly-minted ether only. (T/F)

False

Regarding the Bitcoin blockchain, the emission schedule of BTC is stochastic (random): (T/F)

False

With Ethereum, all transactions are confidential. (T/F)

False

What is not a benefit of proof of stake? Less energy consumption Higher entropy for randomness Higher throughput Reducing the risk of geographical centralization

Higher entropy for randomness

When did the Ethereum network go live? ◦ January 3rd, 2009 ◦ July 30th, 2015 ◦ June 30th, 2014 ◦ November 15th, 2008

July 30th, 2015

All things being equal, a crypto project that has received institutional (VC for example) or angel investor funding is generally considered: As an interesting business opportunity relative to a similar project that has already received funding As an undiscovered gem that will soon attract institutional funding Less risky than a similar project that has not already received funding Riskier than a similar project that has not already received funding

Less risky than a similar project that has not already received funding

Which of the following is not a known risk of NFTs? ◦ Carbon emissions ◦ Money laundering ◦ Market impact ◦ Scamming

Market impact

What is an NFT marketplace? ◦ Marketplace where you can discover exclusive digital collectibles and their non-fungible tokens ◦ An online crypto store ◦ Both of the above ◦ None of the above

Marketplace where you can discover exclusive digital collectibles and their non-fungible tokens

What is the maximum supply of Ether on the Ethereum blockchain? 21 million Ether 210 million Ether 210,000 million Ether 210,000,000 million Ether No maximum supply

No maximum supply

What does the acronym NFT stand for? ◦ New-Financial Token ◦ Non-Fungible Token ◦ New-Fungible Token ◦ Non-Financial Token

Non-Fungible Token

Which of the following is not a known risk of NFTs? Money laundering Scamming Being subject to high gas fees Operational Risk

Operational Risk

What does the ownership of an NFT not necessarily grant? ◦ The right to be recorded as the owner of the token ◦ Ownership of the physical asset ◦ The right to sell the tokens ◦ The right to monetize the value of the NFT

Ownership of the physical asset

This consensus mechanism was the first choice of early Ethereum architects: ◦ Proof-of-Work (PoW) ◦ Proof-of-Authority (PoA) ◦ Proof-of-Stake (PoS) ◦ Proof-of-Transaction (PoT)

Proof-of-Work (PoW)

If a transaction is taking too long to confirm, what method could be used to fix that? ◦ Same nonce of the transaction with higher gas price ◦ Increment nonce of the transaction with same gas price ◦ Broadcasted transactions cannot be replaced ◦ Increment nonce of the transaction with higher gas price

Same nonce of the transaction with higher gas price

What is sharding in Ethereum Consensus Layer? ◦ A way to send funds to more than one party in one transaction ◦ Splitting up the blockchain in smaller sub-chains ◦ Splitting the transactions within a block amongst different nodes ◦ The proper way to do double spending on a blockchain

Splitting up the blockchain in smaller sub-chains

What does the ownership of an NFT not necessarily grant? The right to be recorded as the owner of the token The right to modify the digital asset Ownership of the digital asset The right to monetize the value of the asset

The right to modify the digital asset

Which of the following is NOT a focus of the Ethereum Foundation? ◦ Promotion and outreach ◦ Transaction approval ◦ Education ◦ Protocol research

Transaction approval

In general, it is faster and easier to design and create an ERC-20 token relative to a coin: (T/F)

True

When it comes to early-stage crypto project funding, grants are generally considered to be a weaker positive signal than institutional funding. (T/F)

True

With Ethereum, all transactions are transparent. (T/F)

True

How does NFT work? ◦ Using a distributed public ledger ◦ Using dark web ◦ Using non-digital objects ◦ None of the above

Using a distributed public ledger

What is the smallest unit of Ethereum? Finney Satoshi Ether Wei

Wei

A contract's fallback function is triggered when ... ◦ A transaction data field does not match any of the contract's receiving addresses ◦ An exception is triggered while processing a transaction ◦ A transaction with data is sent to an account without contract node ◦ A particular contract receives plain Ether without any other data associated with the transaction

A particular contract receives plain Ether without any other data associated with the transaction

How many Wei is 1 Ether? ◦ 1,000,000,000 (1 Billion) ◦ Depends on the token decimals ◦ 21,000,000 (21 millions) ◦ 1,000,000,000,000,000,000 (18 0s)

1,000,000,000,000,000,000 (18 0s)

What year was the Ethereum "White Paper" published? ◦ 2010 ◦ 2013 ◦ 2015 ◦ 2017

2013

A crypto project features 100,000,000 tokens and these tokens are currently sold at $0.10 at a private sale. The tokens are scheduled to be sold at $1 at the ICO in 1 year. The team & advisors own 20% of the original supply of tokens subject to a 4-year linear annual vesting schedule with a 2-year cliff starting at present time. How many tokens will be unlocked for sale to the team & advisors in 3 years? - 0 token - 5,000,000 tokens - 20,000,000 tokens - 100,000,000 tokens - $20,000,000

5,000,000 tokens