Block Chain Technology and NFTs

What is blockchain primarily used for?

• A) Storing digital files

• B) Tracking ownership of physical assets

• C) Recording transactions in a decentralized ledger

• D) Securing online communications

Which of the following best describes a blockchain?

• A) A central database managed by a single authority

• B) A distributed ledger that records transactions across multiple nodes

• C) A system for managing cloud storage

• D) A private network for confidential transactions

How does blockchain ensure the security of data?

• A) By centralizing data storage

• B) Through encryption and decentralized verification by nodes

• C) By restricting access to authorized users only

• D) By using private servers

What makes NFTs different from cryptocurrencies?

• A) NFTs are fungible, while cryptocurrencies are not.

• B) NFTs represent unique digital assets, while cryptocurrencies are identical in value.

• C) NFTs can be physically exchanged, while cryptocurrencies cannot.

• D) NFTs are used for payments, while cryptocurrencies are not.

Which blockchain feature allows for the creation and trading of NFTs?

• A) Anonymity

• B) Smart Contracts

• C) Hashing

• D) Mining

What happens when a new block is added to a blockchain?

• A) The entire blockchain is recalculated.

• B) The new block is linked to the previous block via a cryptographic has

• C) All previous blocks are deleted.

• D) The blockchain is reset to its original state.

Which of the following is a key advantage of blockchain technology?

• A) Centralization

• B) High energy consumption

• C) Immutability of records

• D) Limited scalability

How does the decentralization of blockchain contribute to its security?

• A) By concentrating data in one location

• B) By spreading control across multiple participants (nodes)

• C) By encrypting data only at the central node

• D) By reducing the number of participants

What role does blockchain play in the context of NFTs?

• A) It allows NFTs to be duplicated.

• B) It serves as the underlying technology that verifies and records ownership of NFTs.

• C) It stores the digital content of NFTs.

• D) It acts as a central authority for NFT transactions.

What is a potential disadvantage of using blockchain for NFTs?

• A) Lack of transparency

• B) High transaction costs

• C) Centralized control

• D) Difficulty in creating counterfeit NFTs