CBC Tokenization & Digital Assets 1

Question 1

What is tokenization in the context of blockchain technology?

Accepted Answer

Converting rights to a real-world or digital asset into a blockchain-based digital token

Answer

Tokenization converts ownership rights or asset value into a blockchain-based digital token, enabling assets to be transferred, tracked, and managed on a distributed ledger.

Question 2

Which Ethereum token standard defines a common interface for fungible tokens?

Accepted Answer

ERC-20

Answer

ERC-20 is the Ethereum standard that defines a common interface for fungible tokens, ensuring interoperability between tokens and decentralized applications.

Question 3

What is the primary characteristic of a utility token?

Accepted Answer

It provides access to a product or service within a specific blockchain ecosystem

Answer

Utility tokens grant holders access to a product, service, or platform within a specific ecosystem and are not intended as investment instruments.

Question 4

Asset-backed tokenization primarily differs from cryptocurrency in that it:

Accepted Answer

Represents a claim on an underlying tangible or financial asset

Answer

Asset-backed tokenization creates digital tokens that represent ownership claims on underlying real-world assets such as real estate, commodities, or financial instruments.

Question 5

What factor most commonly causes a token to be classified as a security under US law?

Accepted Answer

Investors expect profits primarily from the efforts of others

Answer

Under the Howey Test, a token is a security if investors put money into a common enterprise expecting profits derived primarily from the efforts of a third party.

(CBC) Certified Blockchain Consultant Practice Test

(CBC) Certified Blockchain Consultant Practice Test

CBC Tokenization & Digital Assets 1