Tokenization & Digital Assets Flashcards
6 cards from real CBSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Tokenization & Digital Assets flashcards as text
What is a stablecoin collateralization ratio, and why is it critical in DeFi?
Answer: The amount of collateral held relative to the value of stablecoins issued, ensuring solvency
Collateralization ratio measures how much collateral backs each issued stablecoin; ratios above 100% (overcollateralization) protect against price volatility and prevent insolvency.
Which type of oracle is most appropriate for providing real-world asset prices to a token smart contract?
Answer: Decentralized oracle network
Decentralized oracle networks like Chainlink aggregate data from multiple sources, eliminating single points of failure and manipulation when feeding asset prices to smart contracts.
What is the purpose of a token vesting schedule in a blockchain project?
Answer: To gradually release tokens to founders and investors over time, aligning long-term incentives
Vesting schedules release tokens incrementally over a defined period, preventing early holders from dumping all tokens at once and ensuring alignment with project success.
In a security token offering (STO), what is the role of a transfer agent on the blockchain?
Answer: To enforce compliance rules such as KYC/AML whitelists during token transfers
A blockchain-based transfer agent enforces regulatory compliance by checking whitelisted addresses and transfer restrictions embedded in the security token smart contract before any transfer executes.
What is 'wrapping' a token (e.g., Wrapped Bitcoin / WBTC)?
Answer: Creating a new token on a different blockchain that is backed 1:1 by the original asset
Wrapped tokens represent a cross-chain asset, where the original token is locked in a custodian or smart contract and a pegged equivalent is minted on the target chain.
Which architecture pattern best supports a regulated tokenized real estate platform requiring investor accreditation checks?
Answer: ERC-1400 security token standard with permissioned transfers and on-chain compliance modules
ERC-1400 (or ERC-1404) security token standards embed transfer restriction logic on-chain, enabling automated accreditation and jurisdiction checks at the contract level.