Web 3.0 Ecosystem and Components BDC Practice Questions (Page 9)

Questions 41–45

1. 41foundation · easy

   What is the primary function of a Web3 wallet?

   • ATo store cryptocurrencies on a centralized exchange.
   • BTo provide a social media profile for users.
   • CTo mine new blocks on the blockchain.
   • DTo manage private keys and enable interaction with decentralized applications.
   Reveal Solution Discussion Select an answer first
2. 42foundation · easy

   How does blockchain technology serve as the foundation for Web3?

   • AIt enables high-speed internet connections for decentralized applications.
   • BIt offers a decentralized ledger that records transactions and data transparently and immutably.
   • CIt replaces the need for any consensus mechanism.
   • DIt provides a centralized database for storing user credentials.
   Reveal Solution Discussion Select an answer first
4. 43foundation · easy

   Which of the following is a Web3 use case in the finance industry?

   • AA centralized credit scoring system used by banks.
   • BA stock exchange that uses a central clearinghouse.
   • CA mobile banking app that requires a central server.
   • DDecentralized finance (DeFi) platforms that offer lending and borrowing without banks.
   Reveal Solution Discussion Select an answer first
5. 44expert · hard

   A dApp requires users to sign a message to prove they own a wallet address before they can access premium features. The team is debating between using a simple signature request and a more complex authentication flow that involves a challenge-response mechanism. What is the main security advantage of the challenge-response approach?

   • AIt eliminates the need for a wallet entirely by using email-based authentication.
   • BIt allows the dApp to store the user's private key on the server for verification.
   • CIt prevents replay attacks by using a unique, time-limited challenge that the user must sign.
   • DIt is faster for the user because it does not require a wallet connection.
   Reveal Solution Discussion Select an answer first
6. 45application · medium

   A team is building a dApp that stores user-generated content. They want the content to be tamper-evident and not dependent on a single hosting provider, while keeping storage costs predictable. They plan to store large files on IPFS and record the content hash on a blockchain. Which additional component is most essential to ensure the files remain available over time?

   • AA smart contract that automatically replicates the content to every node on the network.
   • BA custom DNS record that points a domain to the IPFS gateway.
   • CA pinning service or Filecoin deal to incentivize persistent storage of the IPFS content.
   • DA centralized CDN that caches the IPFS content and serves it to users.
   Reveal Solution Discussion Select an answer first