Questions and Answers Content
1. What is Ethereum?
Ethereum is a decentralized, open-source blockchain platform that enables
the creation and deployment of smart contracts and decentralized
applications (DApps). It is designed to operate as a 'world computer' where
users can interact directly without intermediaries.
2. Define Ethereum network.
The Ethereum network is a decentralized peer-to-peer network that operates
using the Ethereum blockchain. It allows participants to execute and verify
smart contracts securely while maintaining consensus across the network.
3. Define smart contract.
A smart contract is a self-executing program with the terms of the agreement
between buyer and seller directly written into lines of code. It operates on
the Ethereum blockchain and automatically enforces the agreed-upon rules.
4. What is EVM?
EVM stands for Ethereum Virtual Machine. It is the runtime environment for
smart contracts in Ethereum, responsible for executing the contract code and
ensuring security and decentralization.
5. Define DAO.
DAO stands for Decentralized Autonomous Organization. It is an organization
represented by rules encoded in a smart contract, controlled by its members
without a centralized authority.
6. What is Ether?
Ether (ETH) is the native cryptocurrency of the Ethereum blockchain. It is
used to pay for transactions and computational services on the network.
7. What is fork?
A fork is a change in the protocol of a blockchain network. It can be
categorized as 'soft fork' or 'hard fork' depending on the compatibility with
older versions.
8. What is Gas?
Gas refers to the fee required to perform a transaction or execute a smart
contract on the Ethereum network. It is paid in Ether and is crucial for
preventing abuse of the network.
9. Define ICO.
An Initial Coin Offering (ICO) is a fundraising method where new
cryptocurrency projects sell their tokens to investors in exchange for Ether or
other cryptocurrencies.
10. What is DApps?
DApps, or decentralized applications, are applications that run on a
blockchain network rather than a centralized server. They are transparent,
open-source, and resistant to censorship.
11. What is the Ethereum Network? Explain with diagram.
The Ethereum network is a decentralized system of nodes that validates
transactions and executes smart contracts. Each node maintains a copy of
the blockchain, ensuring transparency and security.
12. What is Smart Contracts (SC)? Describe its working.
Smart contracts are programs stored on the blockchain that automatically
execute actions when specific conditions are met. They eliminate
intermediaries by automating trustless transactions.
13. What is DAO? Explain in detail.
DAO is a digital organization governed by smart contracts. Members vote on
proposals, and decisions are made collectively. Funds and rules are
transparent and managed autonomously.
14. What is gas? Why is it important in Ethereum?
Gas is a unit that measures the computational effort required for transactions
and smart contract execution. It incentivizes miners and helps prevent
network abuse by charging fees for operations.
15. Describe DApps in detail.
DApps are decentralized applications that run on blockchain technology.
They feature transparency, security, and immutability, enabling use cases
like finance, gaming, and supply chain.
16. What is the fork? What are some of the types of forking? Explain with
diagram.
Forking refers to changes in a blockchain's protocol. Types include:
Soft Fork: Backward-compatible changes.
Hard Fork: Non-backward-compatible updates leading to chain splits.
17. Differentiate between hard copy and soft copy.
Hard Copy: Physical document printed on paper.
Soft Copy: Digital document viewed on electronic devices.
18. Why does it cost money to invoke a method on a smart contract?
Invoking a smart contract requires computational resources, which are
measured in gas. Paying gas fees ensures miners prioritize and validate the
transaction.
19. With the help of diagram describe EVM.
The Ethereum Virtual Machine (EVM) is a runtime environment for deploying
and executing smart contracts. It isolates contract execution from the
underlying hardware, ensuring secure and deterministic operations.
