Smart Contract Quiz

1. What is the primary purpose of a smart contract in blockchain technology?

  • A) To create digital signatures
  • B) To automate and enforce agreements without intermediaries
  • C) To store files
  • D) To mine cryptocurrencies

2. Which programming language is most commonly used for writing Ethereum smart contracts?

  • A) JavaScript
  • B) Solidity
  • C) Python
  • D) Rust

3. What does `msg.sender` represent in a Solidity smart contract?

  • A) The recipient of the contract
  • B) The Ethereum network
  • C) The address that called the contract
  • D) The balance of the contract

4. What is a key benefit of using smart contracts over traditional agreements?

  • A) They require manual intervention to execute.
  • B) They automatically enforce the terms of the agreement.
  • C) They always need a lawyer to verify them.
  • D) They are slower to execute than traditional contracts.

5. How does a smart contract ensure trust between two parties?

  • A) It requires both parties to know each other personally.
  • B) It is stored and executed on a blockchain, making it tamper-proof.
  • C) It is monitored by a central authority.
  • D) It is signed by both parties physically.

6. What happens if the conditions of a smart contract are not met?

  • A) The contract is automatically voided.
  • B) The contract will not execute.
  • C) The contract requires manual approval to proceed.
  • D) The contract is canceled by the involved parties.

7. Can smart contracts be changed once they are deployed on a blockchain?

  • A) Yes, they can be easily edited.
  • B) No, they are immutable once deployed.
  • C) Yes, but only by the creator.
  • D) Yes, but only with the approval of a central authority.

8. How is a smart contract triggered to execute its functions?

  • A) When a specific person gives permission.
  • B) When the predetermined conditions are met.
  • C) When a legal authority approves it.
  • D) When the blockchain is updated.

9. What is an example of a real-world application of smart contracts?

  • A) A vending machine that dispenses a drink when the correct amount is inserted.
  • B) A manual contract that needs to be signed by two parties.
  • C) An email confirmation system.
  • D) A website's terms and conditions agreement.

10. What is one key characteristic of a smart contract?

  • A) It can be changed after deployment.
  • B) It is enforced automatically without intermediaries.
  • C) It is only valid if signed by a notary.
  • D) It requires regular updates from the creator.