Quiz: Creating Coins, NFTs, and Digital Identity

Question 1: What is the primary characteristic that distinguishes fungible tokens from non-fungible tokens (NFTs)?

A. Fungible tokens are unique; NFTs are identical B. Fungible tokens are used in gaming; NFTs are used in finance C. Fungible tokens are non-interchangeable; NFTs are interchangeable D. Fungible tokens are divisible; NFTs are indivisible

Question 2: Which Ethereum token standard is commonly used for creating fungible tokens?

A. ERC-20 B. ERC-1155 C. ERC-721 D. ERC-998

Question 3: What does ERC stand for in Ethereum token standards?

A. Ethereum Resource Code B. Ethereum Request for Comments C. Ethereum Runtime Contract D. Ethereum Regulatory Compliance

Question 4: Which of the following is an example of a non-fungible token (NFT)?

A. Bitcoin B. Ethereum C. CryptoPunk #3100 D. Uniswap's UNI token

Question 5: What is a primary use case for non-fungible tokens (NFTs)?

A. Facilitating decentralized finance (DeFi) transactions B. Serving as a medium of exchange like traditional currencies C. Powering smart contract execution fees D. Representing unique digital assets like art and collectibles

Question 6: How does the ERC-721 standard differ from the ERC-1155 standard?

A. ERC-721 supports multiple token types; ERC-1155 supports only one B. ERC-721 is for single NFTs; ERC-1155 allows for both fungible and non-fungible tokens C. ERC-721 allows batch transfers; ERC-1155 does not D. ERC-721 is for fungible tokens; ERC-1155 is for non-fungible tokens

Question 7: What is a common application of NFTs in gaming?

A. Creating in-game currencies B. Managing game server operations C. Representing unique in-game items or characters D. Enhancing game graphics

Question 8: What does "minting" an NFT refer to?

A. Creating a new NFT on the blockchain B. Destroying a digital asset C. Transferring ownership of a token D. Converting a fungible token into a non-fungible token

Question 9: How can blockchain technology enhance digital identity management?

A. By centralizing user data B. By providing immutable and verifiable records C. By allowing anonymous transactions only D. By eliminating the need for authentication

Question 10: What is a potential benefit of decentralized digital identities?

A. Increased reliance on central authorities B. Simplified data breaches C. Limited access to services D. Enhanced user control over personal data

Question 11: Which blockchain feature ensures that once data is recorded, it cannot be altered?

A. Transparency B. Immutability C. Scalability D. Consensus

Question 12: What is the role of metadata in an NFT?

A. To store the NFT's unique identifier B. To define the NFT's ownership history C. To provide details about the NFT's associated digital asset D. To execute smart contract functions

Question 13: How do NFTs establish ownership of digital assets?

A. Through centralized databases B. By storing ownership records on the blockchain C. By encrypting the digital asset D. By linking to physical certificates