Table of Contents
Transacting on the Blockchain Week 01 Quiz Answers
Quiz 1: Cryptocurrencies, Protocol Tokens, and Utility Tokens
Q1. Which of the following is an example of a cryptocurrency? Select all that apply.
[expand title=View Answer] Bitcoin, Dash [/expand]
Q2. Which of the following best describes a programmable blockchain asset that provides consumers access to services or resources within a DApp?
[expand title=View Answer] Utility token (app coin) [/expand]
Q3. Which of the following are primarily designed to pay for the computational resources required to execute smart contracts as part of a DApp?
[expand title=View Answer] Utility token (app coin) [/expand]
Quiz 2: Security Tokens, and Natural Asset & Commodity Tokens
Q1. A security token is a digital bearer asset (e.g. stock, bond, dividend, etc.) native to a blockchain.
[expand title=View Answer] True [/expand]
Q2. What is a commodity token?
[expand title=View Answer] A digital token on the blockchain that is backed by a physical commodity (e.g. gold, oil, etc.) [/expand]
Quiz 3: Crypto-collectibles, Crypto-fiat Currencies & Stablecoins
Q1. Which of the following can serve as a crypto-collectible?
[expand title=View Answer]
Virtual artwork
Virtual trading cards (e.g. CryptoKitties)
In-game purchases of unique virtual items (e.g. skins, weapons, property)
[/expand]
Q2. In 2017, Venezuela announced that it was launching a new cryptocurrency called the petro, backed by its vast oil reserves. Why were financial analysts and members of the cryptocurrency community skeptical about the Petro’s credibility?
[expand title=View Answer] All of the above [/expand]
Quiz 4: ICOs
Q1. What does “ICO” stand for?
[expand title=View Answer] Initial Coin Offering [/expand]
Q2. Many have argued that the term “ICO” is a bit of a misnomer. What kind of assets can an “ICO” represent? Select all that apply.
[expand title=View Answer]
ownership in a company
access to a network [/expand]
Quiz 5: Cryptoassets
Q1. What is a crypto asset?
[expand title=View Answer] A crypto asset is a digital asset that uses cryptography, a peer-to-peer network, and a public ledger to regulate the creation of new units, verify transactions, and secure transactions without a middleman. [/expand]
Q2. Utility tokens (or “app coins”) are primarily designed to:
[expand title=View Answer] provide consumers with access to services or resources within a DApp [/expand]
Q3. Zcash and other “privacy coins” are examples of this type of crypto asset:
[expand title=View Answer] Cryptocurrencies [/expand]
Q4. Protocol tokens are primarily designed to:
[expand title=View Answer] Serve as a way for DApps to raise funds [/expand]
Q5. Security tokens are:
[expand title=View Answer] An on-chain representation of an off-chain security [/expand]
Q6. Royal Mint Gold (RMG) was an example of this type of crypto asset:
[expand title=View Answer] Commodity Token [/expand]
Q7. CryptoKitties are a type of:
[expand title=View Answer] Crypto-collectible [/expand]
Q8. How does a stablecoin minimize price volatility?
[expand title=View Answer] By pegging its value to an underlying asset, such as a fiat currency or commodity [/expand]
Q9. Why is the term “Initial Coin Offering (ICO)” a misnomer?
[expand title=View Answer] Because investors aren’t buying “coins” per se, but rather crypto assets or tokens that can represent many different things (e.g. network access, securities, carbon credits, etc.) [/expand]
Q10. What is/is the main benefit(s) of ICOs?
[expand title=View Answer] With no minimum investments, anyone in the world—even the poorest and most remote people—can become a venture capital investor [/expand]
Transacting on the Blockchain Week 02 Quiz Answers
Quiz 1: What Are Smart Contracts?
Q1. Who is the “father” of smart contracts?
[expand title=View Answer] Nick Szabo [/expand]
Q2. What is a smart contract?
[expand title=View Answer] Software that mimics the logic of an agreement and automates the execution of transactions [/expand]
Q3. What is/are the benefits (s) of smart contracts? Select all that apply
[expand title=View Answer]
Smart contracts reduce transaction costs by eliminating the need for intermediaries.
Smart contracts improve the security and privacy of the parties involved.
Smart contracts help enforce the terms of an agreement by automating performance. [/expand]
Quiz 2: Smart Contract Phases
Q1. Consider a vending machine that dispenses drinks. Which of the following statements represents the search phase of the deal cycle?
[expand title=View Answer] None of the above [/expand]
Q2. Using the same vending machine scenario, which of the following statements represents the performance phase of the deal cycle?
[expand title=View Answer] IF sufficient payment is received, THEN the vending machine will dispense the correct drink [/expand]
Q3. Which of the following is/are an example(s) of post-performance incentivization?
[expand title=View Answer] A consumer’s rating of a business
A reputation score on a social network
[/expand]
Quiz 3: Smart vs. Traditional Contracts
Q1. Dry code refers to:
[expand title=View Answer] Software code that is interpreted by a computer [/expand]
Q2. In contrast to traditional legal contracts, smart contracts running on a blockchain are:
[expand title=View Answer]
Automated
Predictable
Global
[/expand]
Quiz 4: Smart Contracts and Law
Q1. What is the relationship between smart contracts and the traditional legal system?
[expand title=View Answer] Smart contracts and traditional contracts are complementary and work best in tandem [/expand]
Q2. How does performance verification code assist in resolving smart contract breaches?
[expand title=View Answer] It detects a failure in execution and will seize the on-chain collateral of whoever breached the contract as payment for damages [/expand]
Quiz 5: Smart Contracts
Q1. A smart contract is:
[expand title=View Answer] Software that mimics the logic of an agreement and automates the execution of transactions [/expand]
Q2. What is/are the benefits (s) of using a smart contract?
[expand title=View Answer] All of the above [/expand]
Q3. A key feature of a smart contract is:
[expand title=View Answer] It cannot be seized, stopped, or redirected to another address once it has been set in motion on a blockchain [/expand]
Q4. What happens during the performance phase of a smart contract deal cycle?
[expand title=View Answer] The smart contract manages the collateral to affect an outcome[/expand]
Q5. Wet code refers to:
[expand title=View Answer] Legal language that is interpreted by a human [/expand]
Q6. How does a smart contract differ from a traditional legal contract?
[expand title=View Answer] A smart contract is executed by impartial technology (e.g. sensor-guided effectors), whereas a traditional contract contains rules and conditions that are subject to human judgment [/expand]
Q7. How do smart contracts fit within the traditional legal system?
[expand title=View Answer] While smart contracts are inspired by and can replace some of the functions of traditional contracts, they are largely complementary [/expand]
Q8. Traditional contracts tend to be biased toward their jurisdiction of origin. Conversely, a smart contract on a blockchain:
[expand title=View Answer] Applies the same rules and logic everywhere around the globe [/expand]
Q9. Which of the following describes a potential application of smart contracts in the insurance industry?
[expand title=View Answer] A smart contract could automate the payout of a parametric contract following a measurable, insured event. [/expand]
Q10. A key strategy for effectively implementing smart contracts in a business is:
[expand title=View Answer] None of the above [/expand]
Answer: None of the above
Transacting on the Blockchain Week 03 Quiz Answers
Quiz 1: Identity and Identifiers
Q1. Which of the following is/are example(s) of identifiers?
[expand title=View Answer] A birth certificate
A student ID
A fingerprint [/expand]
Q2. For some, a birth certificate can be challenging to obtain because it must be created and verified by a licensed hospital or midwife. According to UNICEF, what percentage of all births go unrecorded worldwide?
[expand title=View Answer] 10% [/expand]
Q3. The government of India has implemented a 12-digit digital ID for every resident called a(n):
[expand title=View Answer] Aadhaar [/expand]
Q4. What is/are the problem(s) with government-issued identifiers?
[expand title=View Answer] All of the above [/expand]
Q5. What is/are the challenge(s) associated with storing our identifiers in centralized systems?
[expand title=View Answer] Our data is out of our control; a company may use it for their own economic gain, or sell it to a third party without our knowledge.
Porting our data from one system to another can be complicated and expensive.
If a privacy violation occurs (e.g. a hack, identity theft) the responsibility falls on us to deal with the fallout. [/expand]
Quiz 2: Identity on a Blockchain
Q1. What makes an identity system “self-sovereign?”
[expand title=View Answer] The data you create, and all related rights of privacy, are under your individual control. [/expand]
Q2. What is/are the feature(s) that a self-sovereign identity system must possess?
[expand title=View Answer] It must be free of corporate, government, or third-party control
It must be inclusive. [/expand]
Q3. Which of the following represents a consortium of organizations who are collaborating on the creation of a blockchain-based “identity commons,” including the development of use cases and standards for identity management?
[expand title=View Answer] Sovrin Network [/expand]
Q4. If a user’s device is lost or stolen, this type of smart contract enables users to replace their private keys without having to replace their proxy identifier and all the assets that are associated with it.
[expand title=View Answer] controller contract [/expand]
Q5. What is ERC-725?
[expand title=View Answer] A proposed standard for blockchain-based identity on the Ethereum network [/expand]
Quiz 3: Identity
Q1. Which of the following best describes an identifier?
[expand title=View Answer] All of the above [/expand]
Q2. What is/are the problem(s) with using a birth certificate as an overarching record of existence?
[expand title=View Answer] All of the above [/expand]
Q3. India developed a digital ID for every resident called the Aadhaar. What was problematic about its implementation?
[expand title=View Answer] All of the Aadhaar’s demographic and biometric data was stored in a centralized database, which was hacked. [/expand]
Q4. What is/are the problem(s) with storing identifiers in a centralized system?
[expand title=View Answer] All of the above [/expand]
Q5. Which of the following should not apply to the design of an “identity commons?”
[expand title=View Answer] It must enforce the right to be forgotten. [/expand]
Q6. What does it mean for an identity system to be “self-sovereign?”
[expand title=View Answer] That the data you create, and all related rights of privacy, are under your individual control [/expand]
Q7. Which of the following describes a protocol for verifying that x is true, without knowing what x is or who it involves?
[expand title=View Answer] zero-knowledge proof [/expand]
Q8. What is/are the function(s) of a proxy contract in a blockchain-based identity system?
[expand title=View Answer] All of the above [/expand]
Q9. What is/are the function(s) of a controller contract in a blockchain-based identity system?
[expand title=View Answer] All of the above [/expand]
Q10. Which of the following is a proposed standard for blockchain-based identity on the Ethereum network, issued by Fabian Vogelsteller?
[expand title=View Answer] ERC 725 [/expand]
Transacting on the Blockchain Week 04 Quiz Answers
Quiz 1: Six Inefficiencies in Financial Services
Q1. How does blockchain technology disrupt the process of financial attestation?
[expand title=View Answer] It enables two parties, who neither know nor trust each other, to transact and do business online. [/expand]
Q2. On average, how long does it take for a transaction to clear and settle on the Bitcoin blockchain?
[expand title=View Answer] 10 minutes [/expand]
Q3. What kind(s) of financial risk can blockchain technology help mitigate?
[expand title=View Answer] All of the above [/expand]
Q4. Which of the following refers to a blockchain that that runs in parallel to a primary blockchain (e.g. the Bitcoin blockchain)—leveraging its established network, hardware infrastructure, and security, but having different features and functions from the primary blockchain?
[expand title=View Answer] sidechain [/expand]
Quiz 2: The Golden Eight
Q1. What opportunity(ies) does blockchain technology offer for storing value?
[expand title=View Answer] Individuals will no longer need to rely on banks as the primary stores of value. [/expand]
[expand title=View Answer] sidechain [/expand]
Q2. What opportunity(ies) does blockchain technology offer for lending value?
[expand title=View Answer] All of the above [/expand]
Q3. What opportunity(ies) does blockchain technology offer for exchanging value?
[expand title=View Answer] It will cut settlement times on transactions from days and weeks to minutes and seconds. [/expand]
Q4. What opportunity(ies) does blockchain technology offer for funding and investing?
[expand title=View Answer] All of the above [/expand]
Quiz 3: New Frameworks for Accounting
Q1. Current accounting regimes rely upon managers to swear that their books are in order. Why is this problematic?
[expand title=View Answer] All of the above [/expand]
Q2. In traditional accounting, the practice of recording a debit and a credit for each transaction is called:
[expand title=View Answer] double-entry accounting [/expand]
Quiz 4: Rethinking Finance
Q1. Today’s global financial services industry is:
[expand title=View Answer] All of the above [/expand]
Q2. Blockchain technology promises to mitigate several forms of financial risk. The most significant is _, which blockchain could eliminate completely.
[expand title=View Answer] counterparty risk [/expand]
Q3. In today’s financial services industry, remittances take 3-7 days to settle, stock trades take 2-3 days to settle, and bank loan trades take an average of 23 days to settle. How long does it take a transaction to settle on the Bitcoin Lightning Network?
[expand title=View Answer] milliseconds to seconds [/expand]
Q4. What impact will blockchain have on financial lending?
[expand title=View Answer] Consumers, entrepreneurs, and the unbanked will be able to access loans directly from peers [/expand]
Q5. How will blockchain disrupt global trade (i.e. exchanging value)?
[expand title=View Answer] It will reduce settlement times on transactions. [/expand]
Q6. How will blockchain affect financial investing?
[expand title=View Answer] It will enable new models of peer-to-peer financing through token generation events or Initial Coin Offerings (ICOs). [/expand]
Q7. This system of accounting was invented in 15th century Italy by Luca Pacioli, which gave rise to modern accounting practices.
[expand title=View Answer] double-entry accounting [/expand]
Q8. Why are traditional accounting practices ill-suited to the modern era?
[expand title=View Answer] All of the above [/expand]
Q9. This alternative framework for accounting, originally conceived by Yuji Ijiri, has been reappropriated by some to mean the presence of a shared, cryptographically sealed receipt of transactions on a blockchain.
[expand title=View Answer] triple-entry accounting [/expand]
Q10. What is/are the implication(s) of a “World Wide Ledger” for accounting?
[expand title=View Answer] All of the above [/expand]
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