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WorksheetsUnderstanding Tokens and Smart Contracts
Total questions: 15
Worksheet time: 8mins
What is a token in the context of blockchain technology?
A physical coin used for transactions
A digital representation of an asset or utility on a blockchain
A type of computer virus
A password for accessing a website
Which of the following best describes a smart contract?
A legal document signed by two parties
A self-executing programme with the terms of the agreement directly written into code
A type of cryptocurrency wallet
A physical contract stored in a safe
Which of the following is NOT a type of smart contract?
Escrow contract
Insurance contract
Employment contract
Physical paper contract
Which of the following is a common use case for smart contracts?
Automating insurance claims
Printing physical money
Sending emails
Making phone calls
What is one major security concern with smart contracts?
They can be easily lost in the post
Bugs in the code can be exploited by attackers
They require a notary to be valid
They are only valid for one day
Which of the following is an example of a token?
Bitcoin
Ethereum
ERC-20 token
Pound Sterling
What is the primary function of a smart contract in a blockchain?
To store large files
To automatically enforce the terms of an agreement
To print money
To send text messages
Which of the following is a benefit of using smart contracts?
They require manual intervention to execute
They reduce the need for intermediaries
They are only available in paper form
They are slower than traditional contracts
Which type of smart contract is commonly used in crowdfunding platforms?
Escrow contract
Marriage contract
Rental agreement
Employment contract
What does the term "immutable" mean in the context of smart contracts?
The contract can be changed at any time
The contract cannot be altered once deployed
The contract is written in pencil
The contract is stored on paper
Which of the following is a security best practice when developing smart contracts?
Avoid code reviews
Use well-tested libraries and conduct audits
Write code without comments
Ignore error handling
Which blockchain platform is most commonly associated with smart contracts?
Bitcoin
Ethereum
Ripple
Litecoin
Which of the following is NOT a use case for smart contracts?
Voting systems
Automated supply chain management
Weather forecasting
Decentralised finance (DeFi) applications
What is a key difference between a token and a cryptocurrency like Bitcoin?
Tokens are always physical, cryptocurrencies are digital
Tokens can represent assets or utilities, while cryptocurrencies are primarily used as digital money
Cryptocurrencies are stored in banks, tokens are not
Tokens are only used in video games
Which of the following statements about smart contracts is TRUE?
They require a central authority to function
They execute automatically when conditions are met
They are only valid in the United Kingdom
They must be printed and signed
