Cryptocurrency NFTs and Digital Assets

Question 1

What does NFT stand for?

Accepted Answer

Non-Fungible Token

Answer

Network Finality Token

Answer

New Financial Technology

Answer

Null-Function Transfer

Question 2

Which Ethereum token standard is most commonly used for NFTs?

Accepted Answer

ERC-721

Answer

ERC-20

Answer

ERC-1400

Answer

ERC-777

Question 3

What makes a token 'non-fungible' as opposed to fungible?

Accepted Answer

Each unit is unique and not interchangeable with another of the same type

Answer

It cannot be transferred between wallets

Answer

It has no monetary value

Answer

It can only be held by one person at a time globally

Question 4

What does 'minting' an NFT mean?

Accepted Answer

Publishing a digital asset on the blockchain as a new token

Answer

Burning an NFT to create cryptocurrency

Answer

Transferring an NFT to another wallet

Answer

Listing an NFT for sale on a marketplace

Question 5

What is the primary purpose of metadata in an NFT?

Accepted Answer

To describe the properties and attributes of the NFT such as image URL and traits

Answer

To store the private key of the owner

Answer

To record every transaction history permanently on-chain

Answer

To set the gas fee for future transfers

Question 6

What is a creator royalty in the context of NFTs?

Accepted Answer

A percentage of secondary sale proceeds automatically sent to the original creator

Answer

A fee paid to the blockchain validator each time an NFT is viewed

Answer

A tax charged by governments on NFT profits

Answer

A fee charged by marketplaces for hosting NFT listings

Question 7

Which of the following best describes a 'digital asset' in the cryptocurrency context?

Accepted Answer

A value-bearing item that exists in digital form and can be owned or transferred on a blockchain

Answer

Any file stored on a personal computer

Answer

A social media account with monetary value

Answer

A software license purchased online