CCE Smart Contracts and Ethereum 1 — Questions and Answers
Question 1: Who coined the term 'smart contracts' and first described their concept?
- Nick Szabo in the 1990s (Correct answer)
- Satoshi Nakamoto in 2008
- Vitalik Buterin in 2013
- Charles Hoskinson in 2015
Correct answer: Nick Szabo in the 1990s
Nick Szabo coined the term 'smart contracts' in the 1990s, describing self-executing agreements with terms directly written into code.
Question 2: What programming language is most commonly used to write Ethereum smart contracts?
- Python
- JavaScript
- Solidity (Correct answer)
- Rust
Correct answer: Solidity
Solidity is the primary high-level, statically typed programming language designed specifically for writing smart contracts on the Ethereum blockchain.
Question 3: Which best defines a smart contract?
- A legally binding digital document stored on a server
- A self-executing program on a blockchain that runs when predetermined conditions are met (Correct answer)
- An AI system that negotiates and drafts contract terms automatically
- A digital wallet that automatically sends payments on a schedule
Correct answer: A self-executing program on a blockchain that runs when predetermined conditions are met
A smart contract is a self-executing program stored on a blockchain that automatically enforces and executes agreed-upon terms when predetermined conditions are met.
Question 4: What is the Ethereum Virtual Machine (EVM)?
- A runtime environment on Ethereum nodes that executes smart contract bytecode (Correct answer)
- A virtual mining rig emulator used to test Ethereum mining profitability
- A simulation sandbox for testing transactions before mainnet deployment
- A virtual reality interface for visualizing the Ethereum network
Correct answer: A runtime environment on Ethereum nodes that executes smart contract bytecode
The EVM is a runtime environment embedded in every Ethereum node that executes smart contract bytecode, ensuring deterministic and consistent execution across the entire network.
Question 5: What does 'gas' represent in the Ethereum network?
- A unit measuring computational effort required to execute operations (Correct answer)
- The native cryptocurrency used to reward Ethereum miners directly
- A token standard for utility tokens on the Ethereum blockchain
- The physical energy consumption of Ethereum mining hardware
Correct answer: A unit measuring computational effort required to execute operations
Gas measures the computational effort required to execute specific operations on Ethereum; users pay gas fees (in Ether) to compensate validators for the computation performed.
Question 6: What does 'immutability' mean in the context of a deployed smart contract?
- The developer can silently update the contract's logic at any time
- Once deployed, the contract's code cannot be changed on the blockchain (Correct answer)
- The contract automatically patches itself when vulnerabilities are discovered
- The contract is immune to all forms of exploitation and hacking
Correct answer: Once deployed, the contract's code cannot be changed on the blockchain
Immutability means that once a smart contract is deployed, its code is permanently written to the blockchain and cannot be altered, which enforces trust but makes bugs permanent.
Question 7: What is the purpose of the ABI (Application Binary Interface) in Ethereum smart contract development?
- It defines Ethereum's consensus algorithm and block validation rules
- It specifies how to interact with a contract by defining its functions and data types (Correct answer)
- It manages encrypted communication between Ethereum nodes in the P2P network
- It compresses data stored on the blockchain to reduce storage costs
Correct answer: It specifies how to interact with a contract by defining its functions and data types
The ABI defines the interface for interacting with a smart contract, specifying function signatures, parameter types, and return values so applications can encode calls and decode responses correctly.
CCE Smart Contracts and Ethereum 1
Who coined the term 'smart contracts' and first described their concept?