Ethereum Ecosystem, EVM, and Role in Financial Markets BFC Practice Questions (Page 1)

Questions 1–5

1. 1expert · hard

   A DeFi protocol on Ethereum is experiencing failed transactions during network congestion. The protocol's users are losing money on failed transactions. The team wants to reduce the number of failed transactions without sacrificing security. Which approach is most effective?

   • ASet a higher gas limit for all transactions
   • BIncrease the base fee to prioritize transactions
   • CReduce the block time by forking the network
   • DImplement a transaction simulation feature that estimates the outcome before submission
   Reveal Solution Discussion Select an answer first
2. 2application · medium

   A developer is setting up a local Ethereum development environment to test a smart contract before deployment. They want to simulate the behavior of the Ethereum mainnet, including gas costs and account balances, without spending real Ether. Which tool should they use?

   • AGanache, a personal blockchain for Ethereum development that runs on your local machine.
   • BMetaMask, a browser extension wallet for interacting with Ethereum dApps.
   • CInfura, a hosted Ethereum node service.
   • DRemix IDE, an online compiler for Solidity.
   Reveal Solution Discussion Select an answer first
4. 3application · medium

   A regional bank wants to issue a digital representation of its corporate bonds on Ethereum to enable fractional ownership and secondary trading. The bank's legal team requires that each bond be uniquely identifiable and that ownership records be auditable. Which token standard should the bank use?

   • AERC-20, because it is the most widely supported standard for fungible tokens.
   • BERC-1155, because it supports both fungible and non-fungible tokens in one contract.
   • CA custom standard that combines ERC-20 and ERC-721 interfaces, because no existing standard fits.
   • DERC-721, because each token is unique and can carry distinct metadata.
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   What is the primary role of the Ethereum Virtual Machine (EVM) in the Ethereum ecosystem?

   • ATo provide a runtime environment for executing smart contracts
   • BTo manage user accounts and private keys
   • CTo validate transactions and create new blocks
   • DTo store the entire blockchain state on every node
   Reveal Solution Discussion Select an answer first
6. 5application · medium

   A fintech startup is deploying a tokenized bond issuance platform on Ethereum. The compliance team requires that each bond's coupon payment be executed automatically on a fixed schedule, but the team is concerned about the unpredictability of transaction fees during periods of network congestion. Which approach best addresses the requirement while managing cost risk?

   • ASet a fixed gas price in the smart contract code to cap the fee for every coupon payment.
   • BUse a smart contract with a keeper network that monitors the schedule and submits transactions only when gas prices fall below a configured threshold.
   • CDeploy the coupon payment logic as a smart contract and rely on users to trigger payments manually when gas prices are low.
   • DMove the entire bond logic to a centralized server that calls the smart contract only during off-peak hours.
   Reveal Solution Discussion Select an answer first