Crypto Jobs Blockchain Fundamentals 1 — Questions and Answers
Question 1: What is blockchain technology?
- A type of database
- A decentralized, distributed digital ledger that records transactions across many computers (Correct answer)
- A cryptocurrency
- A programming language
Correct answer: A decentralized, distributed digital ledger that records transactions across many computers
Blockchain is a distributed ledger where transactions are recorded in blocks, linked together chronologically, and verified by a network of computers rather than a central authority.
Question 2: What is a smart contract?
- A legal contract written by a lawyer
- Self-executing code stored on a blockchain that automatically enforces agreements when conditions are met (Correct answer)
- A contract signed digitally
- A type of cryptocurrency
Correct answer: Self-executing code stored on a blockchain that automatically enforces agreements when conditions are met
Smart contracts are programs that automatically execute predetermined actions when specified conditions are met, eliminating the need for intermediaries.
Question 3: What does DeFi stand for?
- Digital Finance
- Decentralized Finance — financial services built on blockchain without traditional intermediaries (Correct answer)
- Default Finance
- Defined Finance
Correct answer: Decentralized Finance — financial services built on blockchain without traditional intermediaries
DeFi uses blockchain and smart contracts to provide financial services like lending, borrowing, and trading without banks or traditional financial institutions.
Question 4: What is a consensus mechanism?
- A voting system for shareholders
- A method by which a blockchain network agrees on the validity of transactions (Correct answer)
- A type of cryptocurrency
- A governance document
Correct answer: A method by which a blockchain network agrees on the validity of transactions
Consensus mechanisms (like Proof of Work or Proof of Stake) are protocols that ensure all nodes in the network agree on the state of the blockchain.
Question 5: What is an NFT?
- A new form of tax
- A Non-Fungible Token — a unique digital asset verified on a blockchain representing ownership of a specific item (Correct answer)
- A network function tool
- A cryptocurrency coin
Correct answer: A Non-Fungible Token — a unique digital asset verified on a blockchain representing ownership of a specific item
NFTs are unique blockchain tokens that represent ownership of digital or physical items. Unlike cryptocurrencies, each NFT is unique and cannot be exchanged one-for-one.
Question 6: What programming language is most commonly used for Ethereum smart contracts?
- Python
- JavaScript
- Solidity (Correct answer)
- C++
Correct answer: Solidity
Solidity is the primary programming language for writing smart contracts on the Ethereum blockchain, specifically designed for the Ethereum Virtual Machine (EVM).
Crypto Jobs Blockchain Fundamentals 1
What is blockchain technology?