Blockchain Developer Certification Practice

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Prepare for the Blockchain Developer Certification. Master blockchain concepts with flashcards and multiple choice questions. Explanation-based learning for your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is Ethereum commonly referred to as?

A cryptocurrency limited to sending money
A distributed computing network allowing smart contracts
A social media platform
A central banking system

The correct answer is: A distributed computing network allowing smart contracts

Ethereum is commonly referred to as a distributed computing network that allows smart contracts. This distinction arises from its primary function, which goes beyond merely facilitating transactions. Unlike many cryptocurrencies focused solely on monetary exchanges, Ethereum's platform has been designed to support decentralized applications (dApps) and programmable smart contracts. Smart contracts are self-executing contracts with the terms directly written into code, which enables agreements to be fulfilled automatically when certain conditions are met, without the need for intermediaries. This feature revolutionizes contract execution in various industries, providing transparency, efficiency, and security. The architecture of Ethereum includes its native cryptocurrency, Ether (ETH), which powers transactions and computations on the network, enhancing its role as a fundamental building block for decentralized applications. This ability to execute complex, programmable actions makes Ethereum a powerful platform for developers and businesses, setting it apart from other digital currencies that have a narrower financial focus.