Blockchain and Smart contracts Lesson 3

What is the primary purpose of smart contracts?

• To store the rules of a contract or agreement

• To verify that contract terms are being met by both parties

• To automatically execute the payment or transfer of value

• Both A and B

Which of the following is not a benefit of smart contracts over traditional contracts?

• Increased level of security and trust

• Secure recordkeeping

• Decreased transaction times

• Ability to directly interact with customers

What is the main advantage of using the Ethereum blockchain for smart contracts compared to other blockchain platforms?

• Ethereum offers complete freedom for developers to create whatever they want.

• Ethereum has zero downtime.

• Ethereum is the most popular blockchain-based platform in the world.

• Ethereum was designed to handle smart contract applications from the start.

How do smart contracts remove the need for intermediaries in business transactions?

• By allowing businesses and their customers to directly interact with each other

• By automatically executing payments and transfers of value

• By storing the rules of the contract on the blockchain

• By securing the transaction data on an immutable ledger

Which key feature of the blockchain allows smart contracts to be immutable?

• Distributed network of users

• Majority consensus

• Chronological order of transactions

• Both A and B

What programming language is primarily used to build smart contracts on the Ethereum blockchain?

• CSS

• JavaScript

• Solidity

• Python

What is the primary function of smart contracts in terms of contract terms?

• To modify the terms of the contract

• To store the terms of the contract

• To manually execute the contract terms

• To randomly generate the contract terms

Which of the following is a key reason why smart contracts are considered secure?

• They are validated by a central authority.

• They are validated by a single node on the network.

• They are validated by all participating nodes on the network.

• They are validated by a select group of trusted nodes.

What is the main limitation of smart contracts in terms of accessing external information?

• They can only access information stored on the blockchain.

• They can access any information on the internet.

• They can only access information from a single trusted source.

• They can access information from multiple sources but cannot verify its accuracy.

Which of the following is a potential solution to the problem of trusting oracles in smart contracts?

• Requiring a single, centralized oracle to provide the data.

• Allowing smart contracts to directly access external websites.

• Using multiple oracles that must reach a consensus on the data.

• Removing the need for oracles by only using information stored on the blockchain.