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🤓 Fun Crypto & Blockchain Test - Can You Answer?

Answer these questions to see if you are a Blockchain guru (answers below):

1) What does it mean to HODL?

2) Are Smart Contracts legal documents or software code?

3) Are NFTs Smart Contracts?

4) What is the Flippening?

  • When the total value of Ethereum passes Bitcoin
  • When DeFi replaces the Banking system
  • When cash is completely replaced by digital currencies
  • When the Cryptocurrency bubble bursts (according to some predictions)

5) What does IPFS stand for?

  • Internet PerFormance Standard
  • Internal Performance Flow Solution
  • InterPlanetary File System
  • Internal Proof Formalization System

6) What does FUD mean?

  • Financial Undoing Dashi
  • Fixed Utility Denomination
  • Friends of Universal Doubt
  • Fear Uncertainty and Doubt

7) Who is Satoshi Nakamoto?

8) How Do You Break SHA-256?

*** Scroll Down for Answers ***


ANSWERS


What does it mean to HODL?

To HODL means to “Hold On For Dear Life” and is the phrase that refers to people who own cryptocurrency and hold on to it despite the ups and downs of the market. It is a holding strategy.

Are Smart Contracts legal documents or software code?

Smart Contracts, although they can express agreements between entities, are actually software code. Think of them like vending machines. When you want a candy bar from a vending machine you put in money, the machine verifies and counts the money, and returns the candy plus any change. The system is automated.

Smart Contracts work in a similar way. You can program an agreement using Smart Contract platforms (Solidity on Ethereum and Plutus (Haskell) on Cardano, for example).

An example of a Smart Contract would be one where you put in $100 dollars worth of the Cryptocurreny TypeA that you own and I put in the same value of the Cryptocurrency TypeB that I own and once those criteria are met the Smart Contract swaps the tokens. Using this type of system someone in Africa can exchange with someone in Iceland safely, easily, and almost instantly.

Are NFTs Smart Contracts?

Yes, NFTs are Smart Contracts. Most people simply think of NFTs as digital artwork. NFTs are Smart Contracts that define ownership, history, meta data, and allow for the exchange of ownership for whatever they point at.

An NFT can define ownership of a piece of digital art, an in-game piece, an actual T-shirt, a Tweet, a Concert Ticket, Land in the real world, or anything else. And because NFTs are Smart Contracts that means that they are software which means that they are like little iPhones ready to perform all kinds of things that are only now being imagined.

It will be fascinating to see how the use of NFTs will evolve. Suffice it to say that they are MUCH MORE than just digital art.

What is the Flippening?

The flippening is the name for an event that some people predict will happen. It is when the total value of all Ethereum surpasses the total value of Bitcoin.

What does IPFS stand for?

IPFS stands for the InterPlanetary File System. It is a protocol and peer-to-peer file system that allows for the distributed storage of digital assets. Think of it like Napster for data.

Napster used a peer-to-peer solution to share music where everybody kept the music files on their individual computers. Members of the network could connect to each other “peer to peer” and share music files. Because the music files were distributed across so many computers, all owned by end users, it bypassed the music industry websites.

The IPFS uses a similar peer-to-peer solution, and distributed shared storage, to create a huge virtual storage space. Because it is distributed it meets one of the primary tenets of blockchain where no one company owns the data and nobody can take it down or sensor it.

What does FUD mean?

FUD stands for Fear, Uncertainty, and Doubt and it relates to all of the stories that appear, cause the markets to react, but really have no merit. An example of this would be when Elon Musk sent out a tweet with the hashtag for Bitcoin and a broken heart. People panicked that he no longer loved Bitcoin and the market reacted negatively. However, everything eventually recovered and the tweet was widely defined as FUD.

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There tends to be a lot of FUD among people who don’t understand the substantive merits of blockchain technology, Cryptocurrencies, NFTs, and Smart Contracts. That’s why we HODL.

Who is Satoshi Nakamoto?

Satoshi Nakamoto is the person credited with inventing Bitcoin. If you answered this question, if you know who he is, then you are smarter than me!

The true identity of Satoshi Nakamoto is unknown. Some people think that it is a person. Some people think that it’s a group of people. There are certainly some leading candidates that make sense. However, it’s still a mystery and some of us like it that way.

How Do You Break SHA-256?

If you answered this one then you are TRULY smart! SHA-256 is the algorithm that secures Crypto and blockchain. It is so secure that the U.S. Government uses it for security. It is estimated that it would take millions of years to break it using brute force.

Did you ever wonder how a token on a blockchain could be worth fifty or sixty thousand dollars like Bitcoin? It’s just 1’s and 0’s and like any other thing on the WWW you can just copy and paste it or steal it like people do with software. In order to hold so much value there needs to be a very secure system in place. That’s what blockchain does and it uses SHA-256 to do it.

If you could break SHA-256 then you could steal as much Cryptocurrency as your conscience will let you (mine wouldn’t let me take ANY).

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