MCQ Practice Hub

Cryptocurrency MCQs

Q21. Which protocol allows cross-chain transactions?

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Correct: Polkadot

Polkadot connects multiple blockchains for interoperability.

Q22. What is a DAO?

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Correct: Decentralized Autonomous Organization

DAOs are member-owned communities without central leadership.

Q23. Which cryptocurrency is used for fast, low-cost payments?

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Correct: Ripple (XRP)

Ripple focuses on international money transfers.

Q24. What is yield farming in DeFi?

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Correct: Earning rewards by providing liquidity

Users lock up funds in liquidity pools to earn interest or tokens.

Q25. What does CBDC stand for?

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Correct: Central Bank Digital Currency

CBDCs are digital versions of fiat money issued by central banks.

Q26. Which is the first cryptocurrency?

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Correct: Bitcoin

Bitcoin was introduced in 2009 as the first decentralized cryptocurrency.

Q27. What is a private key?

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Correct: Secret code to access and spend crypto

Private keys must be kept secure to prevent unauthorized access.

Q28. Which consensus uses energy-efficient validation?

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Correct: Proof of Stake

PoS selects validators based on staked coins, reducing energy use.

Q29. What is Web3?

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Correct: Decentralized internet using blockchain

Web3 emphasizes user ownership and decentralization.

Q30. Which token standard is used for NFTs on Ethereum?

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Correct: ERC-721

ERC-721 defines unique, non-interchangeable tokens.

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