Ethereum Smart Contracts Quiz

1. What mechanism in Ethereum smart contracts ensures their execution is trustworthy?

• Centralization
• Transparency
• Decentralization
• Immutability

2. What feature of Ethereum smart contracts allows participants to verify contract terms independently?

• Centralization
• Anonymity
• Transparency
• Complexity

3. How does the decentralized nature of Ethereum enhance the reliability of smart contracts?

• The decentralized nature allows multiple nodes to verify contract execution.
• The centralized control simplifies the contract execution process.
• The lack of peer verification increases risks of failure.
• Smart contracts only rely on a single authority for their operations.

4. What programming languages are primarily used to create smart contracts on Ethereum?

• Python
• JavaScript
• Solidity
• C++

5. In what way does the Ethereum blockchain guarantee the permanence of smart contracts?

• Smart contracts only exist while the network is online but can be altered when it goes down.
• The immutability of smart contracts on Ethereum means they cannot be changed once deployed.
• Smart contracts are deleted after a certain period, losing their functionality.
• Smart contracts can be easily modified by any user at any time.

6. How do Ethereum smart contracts minimize the need for intermediaries in transactions?

• Smart contracts require a manual review process for every transaction.
• Smart contracts automatically execute transactions through blockchain code.
• Smart contracts only function with human intermediaries present.
• Smart contracts must be approved by a central authority before execution.

7. What is the function of gas in the context of Ethereum smart contracts?

• Gas is primarily for storing contract data securely.
• Gas is used to execute smart contracts on the Ethereum Virtual Machine (EVM).
• Gas functions as a method for transferring Ether between users.
• Gas is mainly utilized for mining new Ethereum blocks.

8. What differentiates the Ethereum Virtual Machine (EVM) in executing smart contracts from other platforms?

• The EVM only allows execution of smart contracts written in Python.
• The EVM does not support the execution of smart contracts directly.
• The EVM executes smart contracts in a decentralized manner across multiple nodes.
• The EVM relies on a single server to execute smart contracts for efficiency.

9. How does miners` incentive structure support the creation and validation of smart contracts on Ethereum?

• Miners exclusively mine for Bitcoin and not Ethereum.
• Miners create smart contracts using programming code.
• Miners only validate empty blocks for network maintenance.
• Miners validate transactions to earn rewards.

10. What is the impact of immutability on smart contracts once they are deployed on Ethereum?

• The centralized control over smart contracts allows for changes to be made after they are deployed.
• The immutability of smart contracts ensures that once deployed, their code cannot be altered, promoting reliability and trust.
• Smart contracts can be updated by anyone with access to the blockchain, allowing for rapid changes in code.
• The absence of gas fees makes smart contracts flexible and easily modifiable after deployment.

11. How does Ethereum ensure that smart contracts cannot be altered after deployment?

• The immutability of smart contracts on Ethereum means that once a contract is written and deployed, it cannot be changed or tampered with, ensuring accountability and trust.
• Once a smart contract is deployed, the relevant parties can alter its contents using a special admin key.
• Smart contracts can be updated anytime after deployment if all parties agree to the changes.
• Smart contracts are only stored on a single server, making them easy to modify after deployment.

12. What ensures that transactions executed by smart contracts on Ethereum are transparent?

• All transactions executed by Ethereum smart contracts are confidential and hidden from public view.
• Smart contracts on Ethereum are only visible to the developers who created them.
• The inherent transparency of Ethereum smart contracts allows all participants to view the contract code and its execution history.
• The use of complex algorithms makes Ethereum smart contracts untraceable to outsiders.

13. How does the Ethereum blockchain provide a secure environment for smart contracts?

• The immutability and replication across multiple nodes of the blockchain make smart contracts invulnerable to hacking or unauthorized changes.
• Smart contracts only run on a single private server, making them vulnerable to external threats.
• The security of smart contracts relies on a central authority overseeing all transactions within the network.
• Smart contracts are protected by complex passwords that prevent unauthorized execution by users.

14. What is the relevance of the audit trail in Ethereum smart contract execution?

• The audit trail increases the speed of smart contract execution.
• The audit trail helps to identify faults in the smart contract code.
• The audit trail ensures that contracts are free from bugs and errors.
• The audit trail enhances reliability and fosters trust among participants.

15. In Ethereum, how do contract accounts differ from externally owned accounts (EOAs)?

• Contract accounts are solely owned by individuals without code.
• Externally owned accounts can only send ether and not execute code.
• Externally owned accounts have fewer controls on their transactions.
• Contract accounts execute code written in contracts based on triggers.

16. What benefit do users gain from the public visibility of Ethereum smart contracts?

• Reduced gas fees
• Enhanced transaction speed
• Increased trust and accountability
• Improved data privacy

17. How do multiple nodes on the Ethereum network contribute to contract execution verification?

• Executions are validated by external parties only.
• Multiple nodes verify contract execution independently.
• Only one node executes all transactions.
• Nodes rely on a centralized server for verification.

18. What role does the Ethereum blockchain play in maintaining the integrity of smart contracts?

• It centralizes control of contract execution to a single authority.
• It ensures all transactions are recorded on a distributed ledger.
• It allows changes to be made to contracts after deployment.
• It anonymizes all participants in contract agreements.

19. How does gas pricing correlate with the complexity of a smart contract on Ethereum?

• Gas prices are determined only by network congestion.
• Simple contracts do not require any gas to execute.
• The more complex the smart contract, the more gas required to execute it.
• Gas fees remain constant regardless of contract complexity.

20. What is the purpose of the nonce in Ethereum transactions, particularly regarding smart contracts?

• The nonce in an Ethereum transaction is a constant value that defines transaction fees for all users.
• The nonce in an Ethereum transaction is a sequence number issued by the originating EOA to prevent message replay.
• The nonce in an Ethereum transaction is a random number used to encrypt messages between users.
• The nonce in an Ethereum transaction is a secure key that authorizes the execution of smart contracts.

21. How does the Ethereum network mitigate the risk of reliance on any single server for smart contracts?

• Ethereum smart contracts rely on a centralized server, which controls their execution and ensures reliability.
• The execution of smart contracts on the Ethereum network depends solely on individual user computers, which can lead to inconsistencies.
• Smart contracts on Ethereum require approval from a single main server for execution, making them vulnerable to downtime.
• The decentralized mechanism of the Ethereum blockchain ensures that the execution of smart contracts is not reliant on a single authority or server, mitigating risks associated with data loss, corruption, or server failures.

22. What are the implications of transaction fees on the execution of Ethereum smart contracts?

• The transaction fees are used to reduce the complexity of smart contracts on the Ethereum network.
• The transaction fees are irrelevant to the execution of smart contracts on the Ethereum blockchain.
• The transaction fees ensure that smart contracts can be executed and that miners are compensated for processing transactions.
• The transaction fees eliminate the need for miners to validate transactions on the network.

23. How does the transparency of smart contracts on Ethereum build confidence among users?

• The inherent transparency allows all participants to view the contract code and its execution history.
• They rely on a centralized server to manage contract execution.
• Smart contracts automatically execute transactions without intermediaries.
• Gas fees are used to limit how many contracts can be examined.

24. In what way does the global distribution of Ethereum enhance the security of its smart contracts?

• The global distribution of nodes validates all transactions, enhancing security.
• The global distribution eliminates transaction fees entirely.
• The global distribution makes smart contracts more popular around the world.
• The global distribution increases transaction speed and efficiency.

25. What distinguishes the execution of smart contracts on Ethereum from traditional contractual agreements?

• They require a legal representative to enforce their terms.
• They are executed automatically by code on a decentralized network.
• They can be modified by any party involved after deployment.
• They are stored in a centralized database controlled by one entity.

26. How are miners compensated for their role in the Ethereum blockchain?

• Miners earn loyalty points from Ethereum users.
• Miners are paid in US dollars for their work.
• Miners receive block rewards and transaction fees.
• Miners are compensated through government grants.

27. What happens to a smart contract`s code once it is deployed on Ethereum?

• The code cannot be altered once deployed.
• The code is stored in a central database.
• The code automatically deletes itself after use.
• The code can be modified at any time by users.

28. What are the potential consequences of a failed transaction in an Ethereum smart contract?

• Guaranteed profit for all participants
• Loss of funds and wasted gas fees
• Increase in smart contract complexity
• Automatic refund of all transactions

29. How does the EVM facilitate the execution of complex smart contracts?

• The EVM directly runs all applications on the internet to facilitate smart contracts.
• The EVM executes complex codes through a system of predefined instructions, managing the interactions between smart contracts and the blockchain.
• The EVM requires a central server to process smart contracts efficiently and securely.
• The EVM allows manual execution of contracts by users, which ensures their reliability.

30. Why is the immutability of smart contracts considered an advantage in Ethereum?

• It means that contracts can only be created by a single central authority.
• It allows users to edit contracts after they are deployed at any time.
• It guarantees that all users can see the contract but cannot execute it.
• It ensures that once a contract is deployed, it cannot be changed or tampered with.