Exploring Trustless Systems and Smart Contracts

What is a common security risk associated with smart contracts?

• Reentrancy attacks

• SQL injection

• Phishing attacks

• DDoS attacks

How can reentrancy attacks affect smart contracts?

• Reentrancy attacks have no impact on fund management in smart contracts.

• Reentrancy attacks can allow attackers to exploit vulnerabilities in smart contracts, leading to unauthorized fund withdrawals or state changes.

• Reentrancy attacks are only a concern for centralized systems.

• Reentrancy attacks can enhance the security of smart contracts.

What is the purpose of gas in Ethereum transactions?

• Gas is a type of cryptocurrency used for trading.

• Gas is used to store data on the Ethereum blockchain.

• Gas is a measure of the total supply of Ethereum tokens.

• The purpose of gas in Ethereum transactions is to measure and pay for the computational work required to execute operations.

What feature of the Mist Browser allows users to interact with decentralized applications?

• Blockchain wallet

• Decentralized storage

• Smart contract executor

• Web3 provider

How does the Mist Browser enhance user privacy?

• It uses a unique algorithm to improve search results.

• It enhances privacy by increasing internet speed.

• The Mist Browser enhances user privacy by blocking trackers and using a built-in VPN.

• It automatically deletes browsing history after each session.

What is a trustless system?

• A trustless system is a decentralized network that allows transactions without the need for trust between participants.

• A trustless system requires a central authority to verify transactions.

• A trustless system is a type of financial institution that guarantees trust.

• A trustless system relies on personal relationships between participants.

What advantage do trustless systems provide in transactions?

• They limit transparency by hiding transaction details.

• They provide security and transparency without the need for intermediaries.

• They require multiple intermediaries for verification.

• They increase the time taken for transactions to complete.

How do smart contracts ensure transparency?

• Smart contracts ensure transparency by being recorded on a public blockchain, allowing all participants to view and verify transactions.

• Smart contracts require manual verification by a third party for transparency.

• Smart contracts operate on a private network, limiting access to transactions.

• Smart contracts are only visible to the contract creator.

What is the role of Ethereum in smart contracts?

• Ethereum serves as a platform for deploying and executing smart contracts.

• Ethereum is primarily used for creating decentralized applications without smart contracts.

• Ethereum is a type of blockchain that cannot support smart contracts.

• Ethereum is a cryptocurrency used for trading.

What is a common method to audit smart contracts for security?

• Ignoring external dependencies.

• Using outdated programming languages.

• Manual testing by end-users.

• Formal code review and automated tools analysis.