Smart Contracts and Token Standards Flashcards
6 cards from real Cryptocurrency practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Smart Contracts and Token Standards flashcards as text
What is the ERC-20 token standard?
Answer: A set of rules defining a common interface for fungible tokens on Ethereum
ERC-20 defines a standard interface for fungible tokens on Ethereum, ensuring interoperability between wallets, DEXs, and dApps.
What distinguishes an ERC-721 token from an ERC-20 token?
Answer: ERC-721 tokens are non-fungible, meaning each token is unique and not interchangeable
ERC-721 tokens are non-fungible, meaning each token has unique properties and cannot be exchanged on a 1:1 basis with other tokens.
What is the ERC-1155 token standard?
Answer: A multi-token standard that supports both fungible and non-fungible tokens in one contract
ERC-1155 is a multi-token standard that allows a single contract to manage both fungible and non-fungible tokens, reducing deployment costs.
What is an Initial Coin Offering (ICO)?
Answer: A fundraising method where new tokens are sold to investors in exchange for capital
An ICO is a fundraising mechanism where a project sells newly created tokens to early investors to raise capital for development.
What is token vesting in cryptocurrency projects?
Answer: A schedule that gradually releases tokens to recipients over time
Token vesting is a time-based release schedule that gradually unlocks tokens for founders, team members, or investors to align long-term incentives.
What is the purpose of a token burn mechanism?
Answer: To permanently remove tokens from circulation, often to reduce supply
Token burning permanently removes tokens from circulation by sending them to an unspendable address, often used to create deflationary pressure.