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 an NFT (Non-Fungible Token)?
Answer: A unique digital asset on a blockchain that proves ownership of a specific item
An NFT is a unique blockchain token that certifies ownership and authenticity of a specific digital or physical asset, with each token being distinct.
What is a smart contract audit?
Answer: A security review by experts to identify vulnerabilities in smart contract code before deployment
A smart contract audit is a professional security review that examines code for bugs, vulnerabilities, and logic errors before a contract goes live.
What is the purpose of an oracle in smart contracts?
Answer: To provide smart contracts with real-world external data they cannot access natively
Oracles bridge the gap between blockchains and the real world by feeding smart contracts external data like prices, weather, or sports results.
In the US, how has the SEC generally classified many cryptocurrency tokens?
Answer: As securities subject to federal securities laws
The SEC has argued that many cryptocurrency tokens qualify as securities under the Howey Test, subjecting them to US federal securities regulations.
What is a Layer 2 (L2) solution in blockchain?
Answer: A protocol built on top of a base blockchain to improve scalability and reduce fees
Layer 2 solutions process transactions off the main chain and settle them on-chain, dramatically increasing throughput while inheriting base layer security.
What is a dApp (decentralized application)?
Answer: An application that runs on a decentralized blockchain network using smart contracts
A dApp is an application whose backend logic runs on a decentralized blockchain network via smart contracts, removing reliance on centralized servers.