CBC Cryptocurrency & Smart Contracts

Question 1

What is the primary purpose of cryptocurrency?

Accepted Answer

To provide secure and decentralized transactions

Answer

Cryptocurrency is a digital asset that operates on blockchain technology to facilitate secure and decentralized transactions.

Question 2

Which blockchain network is most commonly associated with smart contracts?

Accepted Answer

Ethereum

Answer

Ethereum is the most widely used blockchain for deploying smart contracts, allowing automated transactions without intermediaries.

Question 3

How do smart contracts execute transactions?

Accepted Answer

By automatically executing predefined conditions

Answer

Smart contracts are self-executing programs that trigger transactions when predefined conditions are met, removing the need for intermediaries.

Question 4

Which feature makes cryptocurrency transactions secure?

Accepted Answer

Cryptographic encryption

Answer

Cryptographic encryption ensures that cryptocurrency transactions are secure, tamper-proof, and protected from fraud.

Question 5

What is the main advantage of using smart contracts in financial transactions?

Accepted Answer

They reduce costs and speed up transactions

Answer

Smart contracts eliminate the need for intermediaries, reducing costs and increasing transaction speed and security.

(CBC) Certified Blockchain Consultant Practice Test