Understanding Smart Contracts

What is a smart contract?

• A smart contract is a type of insurance policy for digital assets.

• A smart contract is a physical contract stored in a safe.

• A smart contract is a self-executing contract with the terms of the agreement directly written into code.

• A smart contract is a legally binding document signed by two parties.

Which blockchain platform is

associated with smart contracts?

• Ripple

• Litecoin

• Bitcoin

• Zenchain

What programming language is primarily used for writing Ethereum smart contracts?

• Ruby

• Python

• JavaScript

• Solidity

How do smart contracts ensure trust between parties?

• Smart contracts are only effective in centralized systems.

• Smart contracts require manual execution to ensure compliance.

• Smart contracts rely on third-party intermediaries to enforce agreements.

• Smart contracts ensure trust by being transparent, immutable, and self-executing on a decentralized blockchain.

What is the role of gas in Ethereum smart contracts?

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

• Gas is a protocol for securing Ethereum network transactions.

• Gas is a type of cryptocurrency used for trading on exchanges.

• Gas is used to measure and pay for the computational resources required to execute smart contracts on the Ethereum network.

Can smart contracts be modified after deployment?

• No, smart contracts cannot be modified after deployment unless designed for upgradability.

• All smart contracts are designed to be modified post-deployment.

• Smart contracts can be modified with a simple command after deployment.

• Yes, smart contracts can be easily modified after deployment.

What are the potential risks associated with smart contracts?

• Smart contracts require no coding knowledge.

• Smart contracts eliminate all legal issues.

• Potential risks associated with smart contracts include coding errors, security vulnerabilities, lack of legal clarity, and reliance on external data sources.

• Smart contracts are immune to hacking.

How do smart contracts differ from traditional contracts?

• Smart contracts require a notary for validation.

• Smart contracts are automated and coded, while traditional contracts are manual and legally interpreted.

• Traditional contracts are executed automatically without human intervention.

• Smart contracts are only used in physical transactions.

What is a decentralized application (dApp) in relation to smart contracts?

• A dApp is a software application that operates on a blockchain using smart contracts for decentralized functionality.

• A dApp is a centralized application hosted on a server.

• A dApp is a mobile app that requires internet access.

• A dApp is a type of cryptocurrency wallet.

What is the significance of immutability in smart contracts?

• Immutability allows for easy updates to smart contracts after deployment.

• Immutability increases the cost of deploying smart contracts.

• Immutability makes smart contracts less secure by allowing changes to be made.

• Immutability ensures trust and security in smart contracts by preventing any changes to the contract after deployment.