Web3 Basics

What is a blockchain?

• A type of cryptocurrency

• A digital ledger of transactions

• A decentralized application

• A computer network

What characteristic defines a decentralized application (dApp)?

• It is controlled by a single entity.

• It operates on a peer-to-peer network.

• It can only be used on mobile devices.

• It requires centralized servers to function.

Which of the following is a use case of blockchain technology outside of cryptocurrency?

• Social media

• Supply chain management

• Video games

• All of the above

What is the primary benefit of using cryptocurrency over traditional fiat currency?

• It is always worth more than fiat currency.

• It can be used without the need for banks.

• It is backed by gold.

• It offers slower transaction times.

Which technology underpins most cryptocurrencies?

• Artificial Intelligence

• Quantum Computing

• Blockchain

• Cloud Computing

How does blockchain technology ensure the integrity of data?

• By allowing anyone to alter data retroactively.

• Through centralized data storage.

• By making all transactions public and easily traceable.

• Using cryptographic hashes to link blocks securely.

What is the main advantage of smart contracts in blockchain technology?

• They require third-party intermediaries for execution.

• They automatically execute and enforce the terms of a contract.

• They are less secure than traditional contracts.

• They can only be used for financial transactions.

Which feature is most characteristic of cryptocurrencies?

• Centralized control.

• Unlimited supply.

• Decentralization.

• Physical representation.