CBSA Tokenization & Digital Assets 1

Question 1

Which ERC token standard is used for non-fungible tokens (NFTs) on Ethereum?

Accepted Answer

ERC-721

Answer

ERC-721 defines a standard for non-fungible tokens where each token has a unique identifier and cannot be exchanged on a 1:1 basis with another token.

Question 2

What is the primary difference between a utility token and a security token?

Accepted Answer

Utility tokens provide access to a product or service; security tokens represent an investment contract

Answer

Utility tokens grant holders access to a platform or service, while security tokens represent ownership or profit rights and are subject to securities regulations.

Question 3

Which token standard supports both fungible and non-fungible tokens in a single contract?

Accepted Answer

ERC-1155

Answer

ERC-1155 is the multi-token standard that allows a single smart contract to manage multiple token types, including both fungible and non-fungible tokens.

Question 4

In the context of asset tokenization, what does fractional ownership mean?

Accepted Answer

Dividing a real-world asset into multiple digital tokens so multiple parties can own a share

Answer

Fractional ownership through tokenization allows high-value assets like real estate or art to be divided into tokens, enabling multiple investors to own a portion.

Question 5

What regulatory framework in the US classifies a digital asset as a security using the 'Howey Test'?

Accepted Answer

SEC Securities Act

Answer

The SEC applies the Howey Test under the Securities Act to determine if a digital asset qualifies as an investment contract and thus a security.

(CBSA) Certified Blockchain Solution Architect Practice Test

(CBSA) Certified Blockchain Solution Architect Practice Test

CBSA Tokenization & Digital Assets 1