Comprehensive Quiz - XRP Ledger

Which of the following statements best summarizes how we use trust lines?

A) When sending currency, a trust line must be created from the receiving/destination account to the sending/issuer account.

B) When sending currency, a trust line must be created from the sending/issuer account to the receiving/destination account.

C) After initiating a transaction with currency between two accounts, both accounts must approve a mutual trust line for the currency transaction to go through.

D) All of the above.

How does the XRPL order book differ from a typical AMM?

A) Trades on the Order Book happen during the hourly auction while an AMM executes trades instantly based on the current formula-based prices.

B) Trades on the Order Book happen when a marketplace merge (mpm) occurs while an AMM executes trades instantly based on the current formula-based prices.

C) Trades on the Order Book happen when a buyer's bid matches a seller's ask while an AMM executes trades instantly based on the current formula-based prices.

D) Trades on the Order Book happen when the buy/sell function cycles while an AMM executes trades instantly based on the current formula-based prices.

What advantage does web 3.0 offer to the gaming industry?

A) Reduced lagging

B) In-game assets with real-world value

C) Improved graphics

What line of code correctly instantiates a client on the XRPL?

A) const client = new xrpl.Client(net);

B) let net = getNet();

C) await client.connect();

D) results = "Connecting to " + net + "....";

Which hook in the nice-xrpl library is used to broker a buy and sell offer from a third-party?

A) acceptBrokeredOffer()

B) useAcceptBrokeredOffer()

C) setBuyOfferIndex(e.currentTarget.value)

D) setSellOfferIndex(e.currentTarget.value)

What code checks the balance of an account?

A) client.getXrpBalance(my_wallet.address))

B) const standby_wallet = xrpl.Wallet.fromSeed(lines[0])

C) const sendAmount = standbyAmountField.value

D) const signed = standby_wallet.sign(prepared)

What could a smart contract be used for?

A) To automate the supply chain

B) To track the ownership of land

C) To settle insurance claims

D) All of the above

How is data mutation different in web 3.0 applications?

A) It is immutable

B) There are no smart contracts

C) It is mutable

What is an ask?

A) A price a buyer is willing to buy an asset at

B) A price a seller is willing to sell an asset at

C) The order book for the XRPL DEX

Where do cryptocurrencies live?

A) In a physical wallet

B) In a software wallet

C) On the blockchain

What is a node?

A) A computer that verifies blockchain transactions

B) A central authority that controls the network

C) A type of cryptocurrency

What are some of the advantages of decentralized finance?

A) Improved security and resilience due to decentralized infrastructure

B) Removes fees from banks and other financial institutions

C) Greater access to financial services for unbanked individuals

D) A and B

E) All of the above

What is yield farming?

A) The act of making small purchases at different times of the day

B) The act of only buying the top-cryptocurrencies

C) The act of using DeFi protocols to earn interest on digital assets

Why is the XRPL good for DeFi?

A) The XRPL’s Proof-of-Work and Proof-of-Stake systems make it difficult to hack.

B) The XRPL always gets the best exchange rate for trades.

C) The XRPL can handle a large volume of transactions quickly and cheaply.

D) The XRPL’s trading algorithm always nets the highest gains per transaction.

What is an ask?

A) A price a buyer is willing to buy an asset at

B) A price a seller is willing to sell an asset at

C) The order book for the XRPL DEX

What is a use case for brokering an NFT transfer?

A) A marketplace that manages the sale of NFT’s for creators.

B) A curator who wants to organize NFT’s by type or price point.

C) An agent who works to buy and sell NFT’s, maximizing the sale price for creators.

D) All of the above

What is proof-of-work?

A) A type of consensus mechanism in which miners compete to solve complex mathematical problems

B) A type of consensus mechanism in which nodes stake the network currency to validate transactions

C) A method of reaching consensus via a peer-to-peer network of nodes

D) None of the above

Which coding language is required to build on the XRPL?

A) JS

B) Python

C) Any language

What is the order book?

A) A list of all current bids and asks for each asset

B) A recommendation of which assets to trade

C) A complete timeline of an asset's price history

Why doesn't XRPL use PoW?

A) PoW uses a lot of energy

B) PoW is too slow

C) PoW isn't decentralized

D) Both A and B

E) All of the above