Smart contract concept in Blockchain / Solidity - Cheat Sheet & Quick Revision

Recall & Review

beginner

What is a smart contract?

A smart contract is a self-executing program stored on a blockchain that automatically enforces rules and agreements without needing a middleman.

beginner

How does a smart contract work?

It runs code on the blockchain when certain conditions are met, like a digital vending machine that releases a product only after payment.

beginner

Name one key benefit of smart contracts.

They reduce the need for trust because the code runs automatically and transparently, so no one can cheat or change the rules secretly.

beginner

What is a common use case for smart contracts?

Examples include automatic payments, digital identity verification, and managing ownership of digital assets like NFTs.

intermediate

Why are smart contracts considered 'immutable'?

Once deployed on the blockchain, their code cannot be changed, ensuring the rules stay the same and everyone follows them.

What triggers a smart contract to execute?

A When the blockchain is restarted

B When predefined conditions are met

C At a fixed time every day

D When a user manually runs it

Smart contracts run automatically when their coded conditions are fulfilled.

Which of these is NOT a feature of smart contracts?

A Automatic execution

B Transparency on blockchain

C Immutability after deployment

D Requires a trusted third party

Smart contracts remove the need for trusted third parties by running code automatically.

Smart contracts are stored on which technology?

A Blockchain

B Cloud server

C Local computer

D Mobile app

Smart contracts live on the blockchain to ensure security and transparency.

What happens if a smart contract's conditions are not met?

A It sends an error to the user

B It executes anyway

C It does not execute

D It deletes itself

Smart contracts only run when their conditions are true; otherwise, they stay inactive.

Which is a real-world analogy for a smart contract?

A A vending machine

B A paper contract

C A bank teller

D A phone call

A vending machine automatically gives a product after payment, like a smart contract executes code after conditions.

Explain what a smart contract is and how it works in simple terms.

Think of it like a digital vending machine that works by itself.

List three benefits or use cases of smart contracts.

Consider how smart contracts help people avoid needing a trusted third party.