Web 3.0 Ecosystem and Components BDC Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   Why is open-source code considered a key characteristic of dApps?

   • AIt ensures the application runs faster.
   • BIt allows the developer to change the rules at any time.
   • CIt allows anyone to audit the code for transparency and trust.
   • DIt prevents users from copying the application.
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   What role do governance tokens play in a DAO?

   • AThey are used to pay transaction fees on any blockchain.
   • BThey provide access to a centralized exchange.
   • CThey serve as a stablecoin pegged to the US dollar.
   • DThey represent voting power in the DAO's decision-making process.
   Reveal Solution Discussion Select an answer first
4. 13expert · hard

   A DAO is being designed to manage a large treasury. The community is split between those who want to minimize the risk of a malicious proposal draining the treasury and those who want to avoid governance gridlock where no proposal can pass. The team is considering a multi-signature wallet for the treasury. What is the most important design decision to balance these concerns?

   • ASet a low threshold (e.g., 3-of-10) to ensure proposals can pass quickly, but this increases the risk of a small group compromising the treasury.
   • BUse a single admin key to manage the treasury for maximum efficiency.
   • CUse a smart contract that automatically executes any proposal that receives a simple majority of votes.
   • DSet a high threshold (e.g., 7-of-10) to require broad consensus, but this may make it difficult to execute legitimate proposals quickly.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A company wants to automate royalty payments to content creators every time their digital art is resold. They want the payment to be enforced without a central authority. Which mechanism should they use?

   • AA database trigger that sends a notification to the creator to request payment.
   • BA legal agreement that requires buyers to manually send royalties to the creator.
   • CA smart contract that includes a royalty fee and automatically transfers a percentage to the creator on each resale.
   • DA centralized payment processor that calculates and sends royalties after each sale.
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A developer is building a decentralized social media platform. User-generated content (images and videos) must be stored in a way that is resilient to censorship and does not rely on a single company's servers. The platform's smart contracts will store only content addresses and metadata. Which storage solution best fits this requirement?

   • AStore the full content directly in the smart contract's state variables.
   • BStore content in a centralized database and only store a hash of the content on-chain.
   • CUse IPFS to store content and record the returned content identifiers (CIDs) in the smart contract.
   • DUse a traditional cloud object store like Amazon S3 and put the URL in the smart contract.
   Reveal Solution Discussion Select an answer first