CBC Cryptocurrency & Smart Contracts

Question 1

What is the primary purpose of cryptocurrency?

Accepted Answer

To provide secure and decentralized transactions

Answer

To function as a centralized form of currency

Answer

To replace physical cash entirely

Answer

To function only as an investment vehicle

Question 2

Which blockchain network is most commonly associated with smart contracts?

Accepted Answer

Ethereum

Answer

Bitcoin

Answer

Litecoin

Answer

Ripple

Question 3

How do smart contracts execute transactions?

Accepted Answer

By automatically executing predefined conditions

Answer

Through manual human verification

Answer

By relying on traditional banking systems

Answer

By requiring approval from a central authority

Question 4

Which feature makes cryptocurrency transactions secure?

Accepted Answer

Cryptographic encryption

Answer

Publicly visible private keys

Answer

Centralized transaction validation

Answer

Unlimited reversibility of transactions

Question 5

What is the main advantage of using smart contracts in financial transactions?

Accepted Answer

They reduce costs and speed up transactions

Answer

They increase dependence on traditional banks

Answer

They require extensive third-party oversight

Answer

They only function on private blockchains

Question 6

Which factor can impact the scalability of smart contracts?

Accepted Answer

Network congestion

Answer

Decentralized security

Answer

Use of cryptographic hashing

Answer

Blockchain immutability