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Questions and Answers
Blockchain is a centralized ledger system
False
Bitcoin is the only cryptocurrency in existence
False
Smart Contracts are a key component of Blockchain technology
True
Airdrop is a process of distributing free cryptocurrency coins to the general public
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DAO stands for the decentralized autonomous organization
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Blockchain technology is not open and distributed
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Smart contracts have no disadvantages
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Fiat currency is not controlled by a central authority
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ERC-20 is a technical standard for issuing tokens on the Bitcoin blockchain
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DApp stands for decentralized applications that run under the control of a central authority
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Web 3.0 is the 3rd generation of the internet where devices are connected in a centralized network
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ICO stands for Initial Coin Offering used by startups to raise funds by selling tokens
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DYOR stands for 'Do Your Own Research'
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Blockchain technology is not vulnerable to a 51% attack
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Ether is the fuel that powers the distributed Ethereum network
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FUD stands for Fear, Uncertainty, and Doubt
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Study Notes
Blockchain Fundamentals
- Blockchain is a decentralized ledger technology that allows multiple parties to access and verify information without a central authority.
- Smart contracts automate processes and agreements within blockchain systems by executing predefined actions when certain conditions are met.
Cryptocurrency Insights
- Bitcoin was the first cryptocurrency to emerge, paving the way for thousands of others; it is not the only cryptocurrency in existence.
- Airdrop refers to the distribution of free cryptocurrency tokens to users to promote a project or reward loyalty.
Decentralization and Organizations
- DAO stands for Decentralized Autonomous Organization, which operates through smart contracts and community governance without a centralized leadership.
- True blockchain technology is open and distributed, allowing anyone to participate and inspect the ledger.
Token Standards and Raising Funds
- ERC-20 is a standard specifically for tokens on the Ethereum blockchain, not Bitcoin, facilitating the creation of new tokens and interoperability.
- ICO (Initial Coin Offering) enables startups to fund their projects by selling tokens in exchange for cryptocurrencies, resembling an initial stock offering.
Personal Responsibility and Research
- DYOR stands for "Do Your Own Research," encouraging individuals to perform thorough due diligence before investing in cryptocurrencies or projects.
- FUD, which stands for Fear, Uncertainty, and Doubt, refers to negative information deliberately spread to influence opinions against a cryptocurrency or project.
Risks and Utilities
- Blockchain technology can be at risk of a 51% attack, where a single entity gains control of the majority of computing power, potentially undermining the network.
- Ether is the cryptocurrency that fuels transactions and operations on the Ethereum network, enabling the execution of smart contracts.
Misconceptions
- DApps, or decentralized applications, are designed to operate without the intervention of a central authority, contrary to the idea of being controlled by one.
- Web 3.0 is characterized by a decentralized internet structure, enabling increased connectivity and user control over data, shifting away from centralized networks.
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Description
Test your knowledge about blockchain technology, smart contracts, and digital transformation with this quiz. Learn the key terms and concepts of blockchain for a better understanding of its potential impact on the world.
