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 the role of gas in Ethereum smart contracts?

To store data temporarily during executions.
To limit the amount of resources that can be utilized.
To facilitate faster transaction processing.
To operate as a currency for executing contracts.

The correct answer is: To limit the amount of resources that can be utilized.

Gas plays a critical role in Ethereum smart contracts by serving as a measure of computational work required to execute operations. It essentially limits the amount of resources that can be utilized during a transaction or contract execution on the Ethereum network. Each operation or computation performed by a smart contract consumes a certain amount of gas, which not only reflects the complexity of the operation but also helps to prevent abuse of the network by ensuring that users cannot execute infinite loops or excessively resource-intensive operations without incurring a cost. This pricing mechanism helps maintain network efficiency and stability, as it requires users to estimate the gas required for their transactions and incentivizes them to optimize their code. If the gas limit for a transaction is exceeded due to the execution of costly operations, the transaction fails, and the resources consumed are still deducted, discouraging wasteful usage of resources. Therefore, gas acts as both a limit and a pricing model, ensuring that the Ethereum network remains functional and fair to all participants.