NFTs, Tokenization, and Digital Assets Flashcards
6 cards from real CCE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 NFTs, Tokenization, and Digital Assets flashcards as text
What is a stablecoin and what problem does it solve in the cryptocurrency ecosystem?
Answer: A price-stable digital asset pegged to a fiat currency or commodity, solving crypto's extreme volatility
Stablecoins like USDT, USDC, and DAI maintain a stable value (typically $1 USD), enabling everyday transactions, DeFi participation, and value storage without price volatility risk.
How does an algorithmic stablecoin maintain its peg?
Answer: Through smart contract mechanisms that algorithmically expand or contract token supply to maintain the target price
Algorithmic stablecoins use on-chain supply-adjustment mechanisms — minting when price is above peg and burning when below — to maintain price stability without direct collateral.
What is a Central Bank Digital Currency (CBDC)?
Answer: A digital form of a country's fiat currency issued and regulated directly by its central bank
CBDCs are sovereign digital currencies that represent a direct claim on the central bank, differing from cryptocurrencies in that they are centralized and state-controlled.
What is the Metaverse in the context of digital assets?
Answer: A persistent, immersive virtual world where users interact, own digital assets, and transact using cryptocurrency and NFTs
The Metaverse integrates blockchain-based digital ownership (NFTs, tokens) with immersive virtual environments, enabling verifiable ownership of virtual land, items, and identities.
What is a crypto airdrop?
Answer: A distribution of free tokens to wallet addresses, typically to reward early users or promote a new project
Airdrops distribute tokens for free to qualifying wallet addresses as a marketing strategy, community reward, or retroactive recognition of early protocol users.
What is a DAO (Decentralized Autonomous Organization) in the blockchain ecosystem?
Answer: A member-owned organization governed by smart contracts and token-holder voting with no central authority
A DAO encodes its governance rules in smart contracts, allowing token holders to collectively vote on proposals, control treasury funds, and direct the organization without centralized leadership.