Blockchain and NFTs Quiz

What is Blockchain?

• A type of computer virus

• A decentralized and distributed digital ledger that records transactions across multiple computers.

• A centralized database

• A type of cryptocurrency

How does Blockchain work?

• Blockchain is a software program that encrypts and stores data on a single computer.

• Blockchain is a decentralized digital ledger that records transactions across multiple computers.

• Blockchain is a physical chain made up of blocks that store transaction data.

• Blockchain is a centralized digital ledger that records transactions on a single computer.

What are NFTs?

• Virtual reality experiences created using blockchain technology

• Physical assets stored in a digital format

• Digital currencies used for online transactions

• Unique digital assets stored on a blockchain

What are the benefits of NFTs?

• Proof of ownership, direct monetization, liquidity, and investment opportunities.

• Enhanced security, global accessibility, and increased market transparency.

• Limited supply, increased demand, and potential for high returns.

• Digital scarcity, increased value over time, and easy transferability.

What are some applications of Blockchain and NFTs?

• Cryptocurrency mining, social media platforms, and healthcare records.

• Digital art ownership, DeFi, supply chain management, gaming, and identity verification.

How does Blockchain ensure security?

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What is the difference between Blockchain and traditional databases?

• Blockchain provides decentralization, immutability, and transparency, while traditional databases are centralized and controlled by a single entity.

• Blockchain is slower and less secure than traditional databases.

• Traditional databases are more scalable than Blockchain.

• Blockchain does not support complex data structures like traditional databases.

What is the role of smart contracts in Blockchain?

• Smart contracts are used to encrypt data in a blockchain.

• Smart contracts are self-executing contracts with the terms of the agreement directly written into code.

• Smart contracts are used to create private blockchains.

• Smart contracts are used to mine new cryptocurrencies.

What is the concept of digital scarcity in NFTs?

• Unlimited supply of unique digital assets

• Limited supply of unique digital assets

• Infinite supply of non-unique digital assets

• Digital assets with no value

How can NFTs be used in the art industry?

• NFTs can be used to create physical artworks.

• NFTs can authenticate and prove ownership of digital artworks, and enable direct sales between artists and collectors.

• NFTs can be used to track the location of artworks.

• NFTs can be used to store and display digital artworks.