FREE Certified Blockchain Professional (CBCP) Cryptocurrency and Digital Tokens Questions and Answers

Question 1

A digital artist wants to issue a limited edition series of 100 unique, provably scarce digital art pieces on the Ethereum blockchain.
Each piece must have a distinct identifier and be individually ownable and transferable.
Which token standard is specifically designed for this purpose?

Accepted Answer

ERC-721

Answer

ERC-20

Answer

ERC-777

Answer

ERC-1155

Question 2

Which of the following best describes the primary characteristic of a fungible token?

Accepted Answer

Each unit of the token is interchangeable and has the same value as any other unit.

Answer

Each token has a unique identifier and metadata.

Answer

It represents ownership of a specific, unique real-world asset.

Answer

It cannot be divided into smaller fractional parts.

Question 3

An organization plans to raise capital by issuing digital tokens that represent ownership shares in the company. This process will be conducted in full compliance with securities regulations, providing investors with rights similar to traditional stockholders, such as dividends and voting rights. What is this type of fundraising event called?

Accepted Answer

Security Token Offering (STO)

Answer

Initial Coin Offering (ICO)

Answer

Initial Exchange Offering (IEO)

Answer

Decentralized Autonomous Organization (DAO) Launch

Question 4

A new stablecoin is being designed to maintain a 1:1 peg with the US dollar. The issuer holds an equivalent amount of actual US dollars and short-term government securities in a fully audited bank account as a reserve. What type of stablecoin collateralization model does this represent?

Accepted Answer

Fiat-collateralized

Answer

Crypto-collateralized

Answer

Algorithmic

Answer

Commodity-collateralized

Question 5

The process of creating a digital representation of a real-world asset on a blockchain, thereby enabling fractional ownership and increased liquidity, is known as:

Accepted Answer

Tokenization

Answer

Decentralization

Answer

Sharding

Answer

Mining

Question 6

A user wants to interact with a decentralized finance (DeFi) protocol. The protocol uses a cryptocurrency that is divisible to eight decimal places and where every unit of the currency is identical and interchangeable with another. Which Ethereum token standard is MOST likely used for this cryptocurrency?

Accepted Answer

ERC-20

Answer

ERC-721

Answer

ERC-1155

Answer

ERC-1400

A digital artist wants to issue a limited edition series of 100 unique, provably scarce digital art pieces on the Ethereum blockchain.Each piece must have a distinct identifier and be individually ownable and transferable.Which token standard is specifically designed for this purpose?

A digital artist wants to issue a limited edition series of 100 unique, provably scarce digital art pieces on the Ethereum blockchain.
Each piece must have a distinct identifier and be individually ownable and transferable.
Which token standard is specifically designed for this purpose?