Crypto Jobs Blockchain Fundamentals 1

Question 1

What is blockchain technology?

Accepted Answer

A decentralized, distributed digital ledger that records transactions across many computers

Answer

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?

Accepted Answer

Self-executing code stored on a blockchain that automatically enforces agreements when conditions are met

Answer

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?

Accepted Answer

Decentralized Finance — financial services built on blockchain without traditional intermediaries

Answer

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?

Accepted Answer

A method by which a blockchain network agrees on the validity of transactions

Answer

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?

Accepted Answer

A Non-Fungible Token — a unique digital asset verified on a blockchain representing ownership of a specific item

Answer

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.

Crypto Jobs Practice Test

Crypto Jobs Practice Test

Crypto Jobs Blockchain Fundamentals 1