Blockchain and Smart Contracts module Quiz

A contract is:

• Something that can only be written by lawyers

• Only valid if it is in writing and signed by both parties

• Something that must involve an exchange of money

• An agreement between two parties

What was NOT mentioned as a problem with the contracts?

• Require 3rd parties to enforce

• Contracts are not self-executing

• Only physical signatures are valid in court

• Contracts can be intentionally confusing

Smart contracts can have an advantage over regular contracts because they can self-execute.

• True

• False

What are reasons that smart contracts have advantages over traditional contracts? (select all that apply)

• Remove the need for intermediaries

• Provide a way to legally transfer bitcoin or Ethereum

• Increase security and trust

• Secure record keeping

Which of the following is NOT a benefit using the Ethereum blockchain for smart contracts?

• Immutability

• Tamper proof

• High level of security

• Zero downtime

• All of the above are benefits of Ethereum

Match the components of a legal contract with the description - Mutual consent:

• The contract cannot be supporting illegal activities

• Both sides agree to exchange something of value

  
  

• Both parties that sign a contract must be in what’s known as ‘sound mind’

• Both parties understand and agree to the details of the contract

Match the components of a legal contract with the description - Competence:

• The contract cannot be supporting illegal activities

• Both sides agree to exchange something of value

• Both parties that sign a contract must be in what’s known as ‘sound mind’

• Both parties understand and agree to the details of the contract

Match the components of a legal contract with the description - Consideration:

• Both parties understand and agree to the details of the contract

• The contract cannot be supporting illegal activities

• Both sides agree to exchange something of value

• Both parties that sign a contract must be in what’s known as ‘sound mind’

Match the components of a legal contract with the description - Legal purpose:

• The contract cannot be supporting illegal activities

• Both sides agree to exchange something of value

• Both parties that sign a contract must be in what’s known as ‘sound mind’

• Both parties understand and agree to the details of the contract

Because Ethereum and Bitcoin have a global distribution of network nodes, smart contracts is also considered secure enough for use on a global scale.

• True

• False