CBCP Cryptocurrency and Digital Assets 5

Question 1

What is a 'flash loan' in DeFi?

Accepted Answer

An uncollateralized loan that must be borrowed and repaid within the same blockchain transaction

Answer

Flash loans exploit atomic transaction properties to provide uncollateralized funds that must be returned within the same transaction block, or the entire operation reverts.

Question 2

What is 'tokenomics' and why is it important when evaluating a cryptocurrency project?

Accepted Answer

The economic design of a token including supply, distribution, incentives, and utility that drives its long-term value

Answer

Tokenomics encompasses supply schedules, distribution allocations, incentive mechanisms, and token utility — factors that fundamentally determine a project's economic sustainability and value accrual.

Question 3

Which type of blockchain attack involves an attacker gaining majority control of network hash rate?

Accepted Answer

51% attack

Answer

A 51% attack occurs when a single entity controls the majority of a PoW network's hash rate, enabling transaction reversal and double-spending but not theft of funds from other wallets.

Question 4

What is a 'DAO treasury' in the context of decentralized organizations?

Accepted Answer

A pool of funds collectively owned and managed by token holders through governance votes

Answer

A DAO treasury is an on-chain pool of assets governed by token holder proposals and votes, funding development, grants, and operational expenses without centralized control.

Question 5

What is the primary risk of an 'algorithmic stablecoin' compared to a collateral-backed stablecoin?

Accepted Answer

Susceptibility to 'death spiral' collapse if confidence in the peg mechanism breaks down

Answer

Algorithmic stablecoins rely on market incentives and supply adjustments rather than hard collateral; a loss of confidence can trigger a reflexive collapse, as seen with TerraUST in May 2022.

CBCP - Certified Blockchain Professional Practice Test

CBCP - Certified Blockchain Professional Practice Test

CBCP Cryptocurrency and Digital Assets 5