Cryptocurrency Cryptocurrency 2

Question 1

What is a 'hard fork' in the context of blockchain technology?

Accepted Answer

A permanent divergence creating two separate blockchains

Answer

A hard fork creates a permanent divergence in the blockchain, resulting in two separate and incompatible chains after a certain block.

Question 2

Which consensus mechanism does Ethereum use after 'The Merge' in 2022?

Accepted Answer

Proof of Stake

Answer

Ethereum transitioned from Proof of Work to Proof of Stake during 'The Merge' in September 2022, drastically reducing its energy consumption.

Question 3

What is a 'gas fee' in the Ethereum network?

Accepted Answer

A fee paid to miners for including transactions in a block

Answer

Gas fees are payments made to compensate miners (or validators post-Merge) for the computational energy required to process and validate transactions.

Question 4

What does 'DeFi' stand for in the cryptocurrency space?

Accepted Answer

Decentralized Finance

Answer

DeFi stands for Decentralized Finance, referring to financial services built on blockchain networks that operate without traditional intermediaries like banks.

Question 5

What is an 'NFT'?

Accepted Answer

A non-fungible token representing unique digital ownership

Answer

An NFT (Non-Fungible Token) is a unique cryptographic token on a blockchain that certifies ownership of a specific digital or physical asset.

Cryptocurrency Practice Test

Cryptocurrency Practice Test

Cryptocurrency Cryptocurrency 2