Ethereum Smart Contracts BBLC Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   What is the primary purpose of a smart contract on Ethereum?

   • ATo enable two parties to exchange digital assets without the need for a trusted intermediary.
   • BTo provide a legal framework for resolving disputes between parties in a court of law.
   • CTo store large amounts of data off-chain and provide a backup for traditional databases.
   • DTo mine new Ether tokens and secure the Ethereum network.
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   Which of the following best describes a smart contract on the Ethereum blockchain?

   • AA centralized database that stores transaction records for a single organization.
   • BA program that runs on the Ethereum blockchain and automatically executes the terms of an agreement when predefined conditions are met.
   • CA legal agreement between parties that is stored off-chain and enforced by a court of law.
   • DA type of cryptocurrency that is used to pay for transactions on the Ethereum network.
   Reveal Solution Discussion Select an answer first
4. 8application · medium

   A small business wants to automate royalty payments to artists each time their digital art is resold. They want the process to be transparent and not rely on a central authority. Which approach best uses Ethereum smart contracts?

   • AUse a smart contract to store the art files themselves on the blockchain.
   • BUse a traditional database to record sales and manually transfer royalties.
   • CDeploy a smart contract that tracks ownership and automatically sends a percentage of each resale to the original artist.
   • DCreate a cryptocurrency and require all purchases to be made with it.
   Reveal Solution Discussion Select an answer first
5. 9application · medium

   A consortium of food producers wants to use Ethereum smart contracts to automate payments to suppliers when a shipment is verified as delivered. They also want to reduce disputes by having an immutable record of each delivery. Which smart contract use case best fits this scenario?

   • AA token issuance contract that creates a new cryptocurrency for the consortium.
   • BA governance contract that allows members to vote on supplier contracts.
   • CA decentralized exchange contract for trading food products.
   • DA supply chain contract that releases payment upon a verified delivery event.
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A logistics company wants to automate penalty payments if a shipment is delayed beyond a certain date. They want the process to be transparent and not require manual intervention. How can a smart contract help?

   • ABy using a smart contract to store the shipment's GPS coordinates.
   • BBy storing shipment data in a centralized database and using a web service to send payments.
   • CBy encoding the delivery deadline and penalty amount, and automatically executing the payment when the deadline is missed.
   • DBy creating a new cryptocurrency to pay for shipments.
   Reveal Solution Discussion Select an answer first