Comprehensive Quiz - XRP Ledger

How does a transaction on a blockchain happen?

A) When the network reaches a consensus

B) When it has finished downloading the blockchain

C) When the block is full

D) When a single validator node approves it

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

How does pathfinding work?

A) It uses XRP as an intermediary asset to find the lowest transaction cost

B) It uses a series of assets or hops to find the best connecting liquidities for the original trading pairs

C) It allows users to trade their assets without having to send them to a centralized exchange

What is decentralized finance?

A) An umbrella term for various protocols and financial instruments that are built on distributed ledger technology (DLT), such as blockchain

B) A type of financial institution that is not subject to government regulation

C) A way of investing that involves taking on more risk in order to potentially earn higher returns

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 does "TVL" mean?

A) Total value locked

C) Tokenized value loan

C) Trade volume level

What code correctly creates and funds an account on the testnet?

A) await client.fundWallet(null, {amount, faucetHost })).wallet;

B) await client.connect()

C) const client = new xrpl.Client(net)

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

Why would someone use escrows?

A) To hold payment funds until the recipient has confirmed receipt of the goods or services being purchased

B) To require that multiple people approve payment before it is processed

C) To make a lot of small payments quickly and efficiently

D) To give someone else the ability to claim funds from your account at any time in the future

What is decentralized finance?

A) An umbrella term for various protocols and financial instruments that are built on distributed ledger technology (DLT), such as blockchain

B) A type of financial institution that is not subject to government regulation

C) A way of investing that involves taking on more risk in order to potentially earn higher returns

Which of these platforms don’t offer a built in order book?

A) Bitcoin

B) Ripplecoin

C) Ethereum

D) Dogecoin

E) All of the above

An account on the XRPL is made up of which two important pieces:

A) A private seed and a public address.

B) A wallet and a faucet.

C) A login and a password.

D) A public seed and a private address.

What is the name of a digital asset that can represent a share of a company?

A) Security token

B) Stablecoin

C) NFT

D) Bitcoin

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 do Automated Market Makers (AMMs) do?

A) AMMs calculate a fair exchange rate between tokens automatically.

B) AMMs find the best price for buying and selling tokens on a decentralized exchange.

C) AMMs automatically trade your tokens for you to increase your wealth.

D) AMMs figure out when the best time to trade your tokens is based on exchange rate fluctuations.

What's the first step to creating your own issued token on the XRPL?

A) Creating a trust line

B) Sending a transaction

C) Configuring the settings for your hot address

D) Creating accounts and acquiring XRP

What is a DEX?

A) A decentralized exchange that allows users to trade assets without having to send them to a centralized exchange

B) A cryptocurrency that is used as an intermediary asset to find the lowest transaction cost

C) An order book that lists all current bids and asks for each asset

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 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 is the web 2.0 era also known as?

A) The social web era

B) The read-only era

C) The dot com bubble