Cryptocurrency NFTs and Digital Assets

Question 1

What does NFT stand for?

Accepted Answer

Non-Fungible Token

Answer

NFT stands for Non-Fungible Token, meaning each token is unique and cannot be exchanged on a one-to-one basis with another token of the same type.

Question 2

Which Ethereum token standard is most commonly used for NFTs?

Accepted Answer

ERC-721

Answer

ERC-721 is the standard that introduced non-fungible tokens on Ethereum, giving each token a unique identifier that distinguishes it from all other tokens.

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

Non-fungible means each token has unique properties and cannot be replaced by an identical unit, unlike fungible assets like Bitcoin where every coin is identical.

Question 4

What does 'minting' an NFT mean?

Accepted Answer

Publishing a digital asset on the blockchain as a new token

Answer

Minting is the process of recording a digital asset on a blockchain, creating a new token with a unique ID that certifies ownership and provenance.

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

NFT metadata contains descriptive information about the token — including the name, description, image URL, and traits — that defines what the NFT represents.

Cryptocurrency Practice Test

Cryptocurrency Practice Test

Cryptocurrency NFTs and Digital Assets