crypto Flashcards
crypto (147 cards)
1
Q
What is Ethereum?
A
A blockchain with a computer embedded in it, serving as a foundation for building decentralized applications and organizations.
2
Q
What is the Ethereum Virtual Machine (EVM)?
A
A single, canonical computer in the Ethereum universe whose state everyone on the network agrees on.
3
Q
What are Transaction Requests?
A
Requests broadcast by network participants for the Ethereum Virtual Machine to perform arbitrary computation.
4
Q
What is a Node (Ethereum)?
A
Any instance of Ethereum client software that is connected to other computers running the same software, forming the network.
5
Q
What are Smart Contracts?
A
Programs stored on a blockchain that self-execute when certain pre-decided conditions are met, intended to be enforced by code rather than legal means.
6
Q
What is a DApp (Decentralized Application)?
A
Digitized permissionless programs installed and operated on a Blockchain network, often powered by smart contracts.
7
Q
What is Solidity?
A
An object-oriented, high-level language for implementing smart contracts.
8
Q
What are State Variables (Solidity)?
A
Declarations within a Solidity contract that define the contract’s state.
9
Q
What is Money?
A
A medium of exchange that is widely accepted for transactions, debt repayment, a unit of account to measure value, and a store of value that holds value over time.
10
Q
What is the Medium of Exchange function of money?
A
A function of money that solves the problem of bartering by allowing trade without needing a direct goods-for-goods match.
11
Q
What is the Unit of Account function of money?
A
A function of money that provides a common measure of value to compare different goods and services.
12
Q
What is the Store of Value function of money?
A
A function of money that allows it to be saved and used later while holding its value over time.
13
Q
What is Commodity Money?
A
Money that has intrinsic value because it is made of a material that is valuable itself.
14
Q
What is Fiat Money?
A
Currency that a government has declared to be legal tender but is not backed by a physical commodity.
15
Q
What is Digital Money?
A
Money that exists in digital form and is used for electronic transactions.
16
Q
What is Currency?
A
A form of money that specifically refers to government-issued legal tender like coins and banknotes.
17
Q
What are Cryptocurrencies?
A
Decentralized digital currencies that operate on a blockchain network, typically have no intrinsic value, exist solely in digital form, and often have a limited supply.
18
Q
What does Decentralized mean in the context of Cryptocurrencies?
A
A characteristic meaning most cryptocurrencies operate on a decentralized network using blockchain technology, without a single entity in control.
19
Q
What does No Intrinsic Value mean for Cryptocurrencies?
A
A characteristic meaning their value is derived from supply and demand dynamics within the market, unlike commodity money.
20
Q
What are Stablecoins?
A
A class of cryptocurrencies designed to maintain a stable value relative to an external reference, mitigating volatility.
21
Q
What are Fiat-Collateralized Stablecoins?
A
Stablecoins that are backed 1:1 by fiat currency reserves (or equivalent assets) held in a bank or by a trusted custodian.
22
Q
What are Crypto-Collateralized Stablecoins?
A
Stablecoins that are backed by other cryptocurrencies, often with over-collateralization to account for volatility.
23
Q
What are Commodity-Collateralized Stablecoins?
A
Stablecoins that are backed by physical assets such as gold or other commodities.
24
Q
What are Algorithmic Stablecoins?
A
Stablecoins that do not use collateral but rely on algorithms and smart contracts to automatically expand or contract supply to maintain a stable price.
25
What is a CBDC (Central Bank Digital Currency)?
A digital form of a country's fiat currency issued and regulated by its central bank, representing a direct claim on the central bank.
26
What is a Wholesale CBDC?
A type of CBDC designed exclusively for financial institutions and central banks, facilitating large-scale transactions like interbank settlements.
27
What is a Retail CBDC?
A type of CBDC intended for use by the general public as a digital equivalent of cash for everyday transactions.
28
What is a Cryptocurrency Wallet?
Tools that allow users to store, manage, and transact digital assets by storing the private keys that grant access to funds on the blockchain.
29
What are Private Keys in the context of Wallets?
Cryptographic keys stored by cryptocurrency wallets that grant access to a user's funds on the blockchain.
30
What are Software Wallets?
Cryptocurrency wallets that are applications or programs installed on a computer or mobile device.
31
What are Desktop Wallets?
Software wallets installed on a PC or laptop, offering high security if the computer is secured.
32
What are Mobile Wallets?
Software wallets designed for smartphones, enabling asset management on the go.
33
What are Web Wallets?
Software wallets accessible through a web browser, hosted on a server by a third party.
34
What are Hardware Wallets?
Physical devices designed to securely store a user's private keys offline, considered one of the safest options for large amounts of cryptocurrency.
35
What are Cold Wallets?
Any method of storing cryptocurrency offline, providing strong protection against online threats, including hardware wallets, paper wallets, and air-gapped devices.
36
What are Paper Wallets?
A physical document containing a printed copy of your public and private keys, immune to hacking as it's completely offline.
37
What is Wallet Custody?
Refers to who holds and controls the private keys associated with a cryptocurrency wallet.
38
What are Custodial Wallets?
Wallets where a third party (like an exchange) holds and manages the private keys on behalf of the user.
39
What are Non-Custodial Wallets?
Wallets where the user retains full control of their private keys, being solely responsible for security.
40
What are Multi-Signature (Multi-Sig) Wallets?
Wallets that require more than one private key to authorize a transaction, adding an extra layer of security.
41
What is a Token?
Digital assets that can represent a wide range of utilities, rights, and ownership beyond just digital cash.
42
What are Fungible Tokens (FTs)?
Tokens that are interchangeable and identical in value and functionality, where each token unit is equivalent to another.
43
What are Non-Fungible Tokens (NFTs)?
Unique digital assets that represent ownership of a specific item or piece of content, each having distinct attributes.
44
What are Utility Tokens?
Tokens that grant access to a specific service or product within a blockchain ecosystem, often used as 'fuel' for DApps.
45
What are Security Tokens?
Tokens that represent ownership in a real-world asset such as equity, real estate, or debt, and are subject to regulatory oversight similar to traditional securities.
46
What are Governance tokens?
Tokens that provide holders with voting rights and the ability to influence the development and decision-making processes within a blockchain ecosystem.
47
What is an ICO (Initial Coin Offering)?
A fundraising method used by blockchain projects to raise capital by selling a certain number of tokens to early backers.
48
What is the Howey Test?
A regulatory test (used in the U.S.) used to determine if a token sale involves an investment contract and thus qualifies the token as a security.
49
What is ERC (Ethereum Request for Comment)?
A protocol standard for proposing improvements on the Ethereum blockchain.
50
What is ERC-20?
The most widely adopted standard for creating fungible tokens on the Ethereum blockchain, defining a set of functions for interoperability.
51
What is ERC-721?
The standard for creating non-fungible tokens (NFTs) on Ethereum, where each token is unique and not interchangeable.
52
What is ERC-721A?
An optimized version of ERC-721 for batch minting that is more gas-efficient.
53
What is ERC-1155?
A multi-token standard that enables a single smart contract to manage both fungible and non-fungible tokens.
54
What is NFT Metadata?
Information that allows your NFT to be displayed on various platforms, describing attributes like the asset it represents.
55
What is IPFS (InterPlanetary File System)?
A decentralized storage system that can be used to store NFT metadata to enhance immutability.
56
What is Ownable (Solidity)?
A contract module providing a basic access control mechanism where a single account (the owner) has exclusive access to specific functions.
57
What is a DAO (Decentralized Autonomous Organization)?
An organization that operates through smart contracts on a blockchain without a central authority, with decision-making managed collectively by members via consensus.
58
What is Decentralization in the context of DAOs?
A key characteristic of DAOs where no single person or entity controls decisions; power is distributed among members, typically token holders.
59
What is Autonomy in the context of DAOs?
A key characteristic of DAOs where the organization runs automatically based on predefined rules encoded in smart contracts.
60
What is Transparency in the context of DAOs?
A key characteristic of DAOs where all governance actions, decisions, and votes are publicly visible on the blockchain.
61
What is Participation as a benefit of DAOs?
A benefit where individuals feel more empowered and connected to the entity by having a direct say and voting power.
62
What is Speed as a limitation of DAOs?
A limitation where collective voting can significantly delay decision-making compared to centralized entities.
63
What is Education as a limitation of DAOs?
A limitation where DAOs must actively educate members on initiatives and proposals due to varied backgrounds.
64
What is Inefficiency as a limitation of DAOs?
A limitation where DAOs can become less efficient due to the need for wide communication, onboarding, and agreement from many people.
65
What is Security as a limitation of DAOs?
A limitation where effective DAO governance demands advanced technical safeguards to prevent decision-making processes from being compromised.
66
What is MakerDAO (Sky Ecosystem)?
An advanced decentralized autonomous organization (DAO) leveraging Ethereum blockchain technology to offer decentralized financial services, particularly the stablecoin DAI.
67
What is the DAI Stablecoin (MakerDAO)?
A decentralized stablecoin pegged to the US Dollar (USD), maintained through an overcollateralization mechanism managed by smart contracts.
68
What is the Maker Protocol (SKY Protocol)?
The protocol used by MakerDAO that allows users to lock supported cryptocurrencies into a 'Vault' to mint DAI tokens.
69
What are Vaults (CDP)?
Smart contracts within the Maker Protocol where users lock collateral assets (like ETH) to mint DAI tokens.
70
What is the Collateralization Ratio (Maker Protocol)?
The minimum required ratio of collateral value relative to the borrowed DAI in a Maker Vault.
71
What are Stability Fees (Maker Protocol)?
Interest-like fees accrued over time, denominated in DAI, that users pay when they close their Vault positions.
72
What is Liquidation (Maker Protocol)?
An automated mechanism activated when collateral value in a Vault drops below a predetermined threshold, auctioning collateral to repay debt.
73
What is the Governance Token (MKR)?
The token used by MakerDAO holders to vote on key parameters and decisions within the protocol.
74
What are Oracles (Maker Protocol)?
Components that provide real-time price feeds to the Maker Protocol, used for accurate valuation of collateral.
75
What is Proposal Polling (MakerDAO/DAO Governance)?
A preliminary community vote to measure support and discuss ideas before a formal governance vote.
76
What is Executive Voting (MakerDAO/DAO Governance)?
A formal vote that officially approves or rejects changes to the protocol.
77
What is Protocol Debt (Maker Protocol)?
Unpaid debt from a Collateral Auction that failed to raise enough DAI, covered by the Protocol Buffer or a Debt Auction.
78
What is the Protocol Buffer (Maker Protocol)?
A reserve within the Maker Protocol used to cover Protocol Debt.
79
What is a Debt Auction (Maker Protocol)?
An auction triggered if the Protocol Buffer is insufficient, where new MKR tokens are minted and sold for DAI to cover debt.
80
What is a Surplus Auction (Maker Protocol)?
An auction that occurs when excess DAI accumulates in the Protocol Buffer, where extra DAI is sold for MKR tokens, which are then destroyed.
81
What is DAO Governance (Process)?
The decentralized decision-making process in which token holders collectively manage and operate a blockchain-based organization.
82
What is Token-weighted Voting?
A DAO governance model where voting power is directly proportional to the tokens held.
83
What is Delegative (Liquid) Democracy?
A DAO governance model where token holders can delegate voting power to trusted representatives.
84
What is Reputation-Based Voting?
A DAO governance model where users accumulate reputation points based on contributions to the ecosystem, guiding decisions by invested members.
85
What is Quadratic Voting?
A DAO governance model where voting power increases quadratically relative to tokens held, aiming to prevent 'whale dominance'.
86
What is The DAO (2016 entity)?
A Decentralized Autonomous Organization launched on Ethereum in 2016 with the goal of operating as a venture capital fund.
87
What is a Recursive Call (Reentrancy attack)?
A vulnerability exploited in The DAO hack where the attacker repeatedly requested withdrawals before the contract updated their balance.
88
What is the Ethereum Hard Fork (2016)?
A decision by the Ethereum community to reverse The DAO hack transaction by splitting the blockchain.
89
What is Ethereum Classic (ETC)?
The original Ethereum blockchain that refused the hard fork to reverse The DAO hack.
90
What is Digital Ownership?
The right to control, use, and transfer digital assets, including access, usability, and transferability.
91
What is Authentication in Digital Ownership?
Verifying the legitimacy of a digital asset owner's claim.
92
What is Authorization in Digital Ownership?
Granting control over the digital asset.
93
What is Transferability in Digital Ownership?
Enabling the movement of digital assets from one entity to another.
94
What is Persistence in Digital Ownership?
Ensuring ownership of a digital asset remains even after copying or transferring it.
95
What is DRM (Digital Rights Management)?
Systems used in centralized infrastructures to restrict usage of purchased digital media.
96
What is Self-custody (Blockchain Ownership)?
The ability for users to truly hold assets (e.g., via private keys) in a distributed environment, eliminating intermediaries.
97
What is Programmable Ownership (Blockchain)?
The ability to automate enforcement of ownership rights, royalties, and transfer conditions using smart contracts on a blockchain.
98
What is Interoperability (Blockchain Assets)?
The ability for blockchain assets, particularly through standards like ERC-721 and ERC-1155, to be portable across different platforms.
99
What is Provenance & Auditability (Blockchain)?
The characteristic of blockchain ownership where history is transparent, immutable, and cryptographically verifiable.
100
What is Digital Privacy?
The protection of personal information and digital footprints in cyberspace.
101
What is Data confidentiality?
Preventing unauthorized access to personal or sensitive data.
102
What is Control and consent (Digital Privacy)?
Ensuring users have authority over how their data is collected, used, and shared.
103
What is Anonymity and pseudonymity (Digital Privacy)?
Allowing users to interact online without disclosing their real identities.
104
What is Surveillance resistance?
Preventing profiling or tracking by third parties.
105
What is Privacy by trust?
The prevailing historical paradigm in centralized systems where users trusted institutions to manage their data.
106
What is the Transparency vs Privacy Paradox (Blockchain)?
The conflict between the public, transparent nature of most blockchains and conventional notions of privacy.
107
What is Pseudonymity (Blockchain Privacy)?
The use of blockchain addresses instead of real identities, offering some protection but vulnerable to deanonymization.
108
What are Zero-Knowledge Proofs (ZKPs)?
Privacy-preserving techniques that allow verification of information without revealing it.
109
What are Confidential Transactions?
Privacy-preserving techniques used in some blockchains to hide transaction amounts.
110
What is Decentralized Identity (DID)?
Frameworks that enable self-sovereign identity systems where users own and control their identity attributes independently.
111
What is Homomorphic Encryption?
A privacy-preserving technique that allows computation on encrypted data without exposing raw data.
112
What is Multi-Party Computation (MPC)?
A privacy-preserving technique that allows computation on encrypted data across multiple parties without any single party seeing the raw data.
113
What is Privacy by design (Blockchain)?
A shift towards building systems where privacy is an inherent feature rather than an afterthought, often using techniques like ZKPs or off-chain storage.
114
What is GDPR (General Data Protection Regulation)?
A comprehensive data protection law in the EU granting individuals rights over their personal data, posing challenges for blockchain's immutability and decentralization.
115
What is CCPA (California Consumer Privacy Act)?
A sector-specific data privacy law in California applying to blockchain applications handling consumer data, requiring rights like access and deletion.
116
What is PDPL (Personal Data Protection Law - Saudi Arabia)?
Saudi Arabia's data privacy law regulating processing of personal data, posing challenges for blockchain due to immutability and cross-border nature.
117
What is Data Immutability (Blockchain Privacy Challenge)?
The inability to alter or delete data once recorded on a blockchain, conflicting with 'right to be forgotten' laws.
118
What is Technological Integration?
The seamless incorporation of regulatory, compliance, and auditing mechanisms into the core architecture of digital systems.
119
What is Compliance by Design?
Embedding legal and regulatory constraints directly into system protocols, data flows, and application logic from the outset.
120
What is RegTech (Regulatory Technology)?
The use of technology to automate and enhance regulatory processes, such as machine learning and real-time reporting.
121
What is Auditability and Traceability (Technological Integration)?
Leveraging distributed ledgers and smart contracts to ensure that transactions and system behaviors are transparent, immutable, and verifiable.
122
What is Compliance as infrastructure (Blockchain)?
The concept enabled by blockchain where compliance is automated, transparent, and tamper-proof, unlike legacy systems.
123
What is Real-time monitoring (RegTech)?
The ability enabled by RegTech tools to continuously observe on-chain activities as they occur.
124
What is Automated anomaly detection (RegTech)?
Using machine learning models within RegTech to automatically identify unusual or suspicious patterns in data.
125
What is Non-repudiation (Blockchain)?
The characteristic of blockchain provided via cryptographic proofs, ensuring that a participant cannot deny having performed a transaction.
126
What is Embedded Supervision (RegTech/Regulatory)?
A concept where regulators may directly interface with DLT networks to monitor compliance in real-time.
127
What are Regulatory sandboxes?
Controlled environments where new technologies can be tested under regulatory oversight.
128
What is real-time monitoring in RegTech?
The ability enabled by RegTech tools to continuously observe on-chain activities as they occur.
129
What is automated anomaly detection in RegTech?
Using machine learning models within RegTech to automatically identify unusual or suspicious patterns in data.
130
What is non-repudiation in blockchain?
The characteristic of blockchain provided via cryptographic proofs, ensuring that a participant cannot deny having performed a transaction.
131
What is embedded supervision in RegTech?
A concept where regulators may directly interface with DLT networks to monitor compliance in real-time.
132
What are regulatory sandboxes?
Controlled environments established by regulators to allow businesses to experiment with new technologies, including blockchain, under oversight.
133
What is the blockchain trilemma?
A concept suggesting it is extremely difficult for a blockchain to simultaneously optimize for Decentralization, Security, and Scalability.
134
What does decentralization refer to in the trilemma?
A pillar of the trilemma referring to the extent to which control is distributed across a network, ensuring trustlessness and censorship resistance.
135
What does security refer to in the trilemma?
A pillar of the trilemma referring to the network’s resistance to attacks and faults, guaranteeing integrity and consistency.
136
What does scalability refer to in the trilemma?
A pillar of the trilemma referring to the ability to handle a high number of transactions per second (TPS) and support widespread adoption.
137
What are layer 2 solutions in blockchain scaling?
Approaches built on top of a main blockchain to handle transactions off-chain and settle them later, improving scalability.
138
What is sharding in blockchain scaling?
A proposed solution to the trilemma that involves splitting the blockchain into smaller parts to process transactions in parallel.
139
What are hybrid consensus models in blockchain?
Approaches that combine different consensus mechanisms (e.g., PoW and PoS) to balance the trilemma pillars.
140
What are interoperability protocols in blockchain?
Technologies designed to allow different blockchains to communicate and exchange data, such as Polkadot or Cosmos.
141
What are modular blockchains?
Blockchain architectures that separate different functions like data availability, consensus, and execution into distinct layers.
142
What is the integration of AI and IoT with blockchain?
The convergence of these technologies to enhance data security, operational efficiency, and decision-making by leveraging their respective strengths.
143
What is decentralized finance (DeFi)?
Financial systems that enable decentralized, peer-to-peer financial services without intermediaries, transforming traditional finance.
144
What are NFTs beyond art?
The expansion of Non-Fungible Tokens into sectors like real estate, intellectual property, and identity verification to offer unique digital ownership solutions for real-world assets.
145
What is government adoption of blockchain?
The increasing use of blockchain technology by governments for public services such as voting, land registries, and supply chain management.
146
What is sustainability in blockchain?
The effort within the blockchain industry to address environmental concerns by developing sustainable practices and technologies, like energy-efficient consensus mechanisms.
147
What are energy-efficient consensus mechanisms?
Blockchain protocols (like Proof-of-Stake) designed to be less energy-intensive than Proof-of-Work, addressing environmental concerns.
