CBCP Cryptocurrency and Digital Tokens 2

Question 1

Which consensus mechanism does Ethereum currently use after 'The Merge' in 2022?

Accepted Answer

Proof of Stake

Answer

Ethereum transitioned from Proof of Work to Proof of Stake via 'The Merge' in September 2022, reducing its energy consumption by ~99.95%.

Question 2

What is the primary function of a token's 'vesting schedule' in a cryptocurrency project?

Accepted Answer

To release tokens gradually over time to prevent large sell-offs

Answer

Vesting schedules lock tokens and release them incrementally to align team and investor incentives with long-term project health.

Question 3

What distinguishes a 'security token' from a 'utility token' under US regulatory frameworks?

Accepted Answer

Security tokens represent ownership or investment interest and are subject to SEC regulation

Answer

Security tokens pass the Howey Test—representing an investment of money in a common enterprise with expectation of profits—and therefore fall under SEC jurisdiction.

Question 4

In the context of cryptocurrency, what is a 'dust attack'?

Accepted Answer

Sending tiny amounts of crypto to wallets to track and de-anonymize owners

Answer

Dust attacks involve sending negligible amounts of cryptocurrency to wallets to analyze transaction patterns and potentially link addresses to real identities.

Question 5

What does 'tokenomics' primarily refer to?

Accepted Answer

The economic design of a token including supply, distribution, and incentive structures

Answer

Tokenomics encompasses all economic aspects of a token: total supply, emission schedule, allocation, burn mechanisms, and how incentives align stakeholders.

CBCP - Certified Blockchain Professional Practice Test

CBCP - Certified Blockchain Professional Practice Test

CBCP Cryptocurrency and Digital Tokens 2