Virtual Labs

a: They execute agreements automatically when conditions are met. b: They replace all legal systems worldwide. c: They guarantee physical delivery of products. d: They eliminate the need for encryption.

How do smart contracts enhance security in digital systems?

a: By using cryptographic techniques to prevent tampering. b: By allowing anyone to change the terms at any time. c: By storing sensitive data in plain text. d: By sending email alerts to users.

Which of the following best describes how smart contracts operate?

a: They follow predefined conditions coded in software to execute actions automatically. b: They require manual approval for each transaction. c: They generate revenue without any rules. d: They work only with physical paperwork.

Why are smart contracts considered transparent?

a: Because all transactions are recorded on a public or permissioned blockchain. b: Because they hide all user data from everyone. c: Because only the creator can see the contract details. d: Because they require manual verification of every step.

What ensures that smart contracts are tamper-proof?

a: Blockchain immutability and cryptographic hashing. b: Frequent manual audits. c: Centralized control by a single organization. d: Storing contracts in local files on a computer.

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