What are DApps? | Decentralized Applications Explained

Question 1

Categorize the following DApps into their respective categories based on their functionality:

Accepted Answer

Financial DApps:
- Uniswap: Decentralized exchange for trading cryptocurrencies.
- Compound: Lending and borrowing platform allowing users to earn interest on their crypto assets.

Accepted Answer

Gaming DApps:
- Axie Infinity: Play-to-earn game where players can collect, breed, and battle digital monsters called Axies.

Accepted Answer

Collectible DApps:
- Rarible: Digital art marketplace that allows users to buy, sell, and trade unique digital collectibles.

Answer

Social DApps:
- None of the provided DApps fit into this category.

Question 2

Which of the following is a defining characteristic of Decentralized Applications (DApps)?

Accepted Answer

Leverage blockchain technology to operate in a decentralized manner

Answer

Reliance on a centralized server for data storage and computation

Answer

Require a specific operating system

Answer

Run on a proprietary programming language

Question 3

How does the use of blockchain technology in DApps contribute to their autonomy?

Accepted Answer

Eliminates the need for intermediaries or central authorities to control the application's operations

Answer

Guarantees instant execution of transactions due to the inherent speed of blockchain

Answer

Provides scalability to handle high traffic loads without compromising performance

Question 4

Which of the following is NOT a common use case for DApps?

Accepted Answer

E-commerce transactions that require centralized payment processing systems

Answer

Gaming and entertainment applications that provide immersive experiences without centralized control

Answer

Decentralized finance (DeFi) applications that facilitate peer-to-peer financial transactions

Answer

Social media platforms that allow users to connect and interact in a decentralized environment

Question 5

What is the role of the Ethereum blockchain in the DApp ecosystem?

Accepted Answer

Serves as a widely adopted and established platform that supports the development and execution of DApps

Answer

Defines industry standards and best practices for DApp development and deployment

Answer

Facilitates the creation and management of user identities and accounts within the DApp ecosystem

Answer

Provides a secure and tamper-proof environment for storing and managing user data related to DApps

Question 6

Which of the following statements about DApps is accurate?

Accepted Answer

They possess the potential to revolutionize various industries by enabling decentralized, transparent, and autonomous applications

Answer

They require specialized hardware with high computational power to operate effectively

Answer

They have gained universal acceptance and are widely adopted by governments and regulatory bodies globally

Answer

They are completely immune to all forms of security threats and vulnerabilities

Question 7

What is a major factor contributing to the increasing popularity of DApps?

Accepted Answer

Growing awareness and understanding of blockchain technology among developers and users

Answer

Emergence of new programming languages specifically designed for DApp development

Answer

Implementation of favorable regulatory frameworks that provide clarity and guidance for DApp development

Answer

Significant decrease in the costs associated with developing and deploying DApps

Question 8

Which DApp exemplifies the creation of a decentralized and autonomous platform for financial transactions?

Accepted Answer

DApp facilitating peer-to-peer lending

Answer

DApp managing patient medical records

Answer

DApp tokenizing real estate assets

Answer

DApp tracking supply chain operations

Question 9

Which of the following is a fundamental characteristic of Decentralized Applications (DApps)?

Accepted Answer

Decentralized data storage

Answer

Proprietary ownership

Answer

Centralized governance

Question 10

How do DApps harness the power of blockchain technology?

Accepted Answer

By leveraging a distributed network of nodes to store data and execute logic

Answer

By employing traditional client-server architectures

Answer

By utilizing centralized servers for data management

Question 11

Which of the following illustrates a real-world use case for DApps within the financial sector?

Accepted Answer

Decentralized finance (DeFi) platforms

Answer

Centralized banking institutions

Answer

Proprietary trading systems

Answer

Traditional investment brokerages

Question 12

What is the primary advantage of utilizing a decentralized governance model for DApps?

Accepted Answer

Enhanced transparency and increased community involvement

Answer

Accelerated decision-making processes

Answer

Reduced software development costs

Answer

Improved application security

Question 13

Which of the following is NOT identified as a potential challenge associated with DApp development?

Accepted Answer

An abundance of skilled developers

Answer

Technical complexity

Answer

High transaction fees on certain blockchains

Answer

Unclear regulatory frameworks

Question 14

How do DApps safeguard data integrity and ensure security?

Accepted Answer

Through decentralized data storage and robust encryption techniques

Answer

By relying on manual verification processes

Answer

By employing conventional security measures

Answer

By utilizing centralized database systems

Question 15

Identify the critical distinction between traditional centralized applications and DApps.

Accepted Answer

Ownership and control of data and underlying logic

Answer

Scalability and performance characteristics

Answer

Programming languages and development tools

Answer

User interface design and aesthetics

Question 16

Which of the following is a potential application of DApps within the supply chain industry?

Accepted Answer

Tracking the provenance and movement of goods throughout the supply chain

Answer

Managing customer relationships and interactions

Answer

Processing financial transactions and payments

Question 17

What is the role of smart contracts in the context of DApps?

Accepted Answer

Automating the execution of pre-defined business logic on the blockchain

Answer

Facilitating communication and data exchange between DApps and users

Answer

Providing a user-friendly graphical interface for DApp interactions

Question 18

Which of the following is an advantage of utilizing IPFS (InterPlanetary File System) in DApps?

Accepted Answer

Decentralized file storage and content distribution

Answer

Centralized database management and data backups

Answer

Enhanced data security through advanced encryption algorithms

Answer

Automatic data recovery and restoration capabilities

Question 19

Which of the following is a fundamental characteristic of Decentralized Applications (DApps)?

Accepted Answer

Decentralized governance and operation

Answer

Centralized data storage

Answer

Dependence on a single server

Answer

Exclusive use of blockchain technology

Question 20

Which of the following is NOT considered an advantage of DApps?

Accepted Answer

Increased vulnerability to censorship

Answer

Enhanced security and immutability

Answer

Greater transparency and accountability

Answer

Improved efficiency and cost reduction

Question 21

Which of the following is a common use case for DApps?

Accepted Answer

Supply chain management and traceability

Answer

Word processing and document editing

Answer

Traditional web browsers

Answer

Operating systems for personal computers

Question 22

How do DApps contribute to promoting transparency and accountability?

Accepted Answer

By immutably recording transactions and data on the blockchain

Answer

By encrypting all data and transactions

Answer

By relying on third-party audits and certifications

Question 23

What is a key difference between DApps and traditional centralized applications?

Accepted Answer

Ownership and control of data and functionality

Answer

There are no significant differences

Answer

User interface design and aesthetics

Answer

Programming languages and development tools used

Question 24

How do DApps contribute to the decentralization of the internet and digital ecosystems?

Accepted Answer

By reducing reliance on centralized platforms and intermediaries

Answer

By increasing internet speeds and bandwidth

Answer

By introducing more intermediaries and complexities

Answer

DApps do not contribute to internet decentralization

Question 25

Which characteristic is essential for a decentralized application?

Accepted Answer

Autonomous execution based on predetermined rules and logic

Answer

Dependence on centralized servers or cloud platforms

Answer

Susceptibility to unauthorized changes and modifications

Answer

Reliance on a human administrator or central authority

Question 26

How do DApps differ from smart contracts in terms of their functionality and purpose?

Accepted Answer

DApps are user-facing applications built on smart contracts, while smart contracts are underlying logic and code

Answer

Smart contracts are more secure than DApps

Answer

DApps use blockchain technology, while smart contracts do not