Decentralized NFT Marketplaces Analysis Quiz

1. What is the primary technology used in decentralized NFT marketplaces?

• Peer-to-peer networks.
• Digital wallets.
• Blockchain technology.
• Centralized servers.

2. How do decentralized NFT marketplaces ensure transparency and security?

• They rely on centralized servers for data storage.
• They manage everything through traditional banking systems.
• They use blockchain technology and smart contracts.
• They utilize paper-based contracts for transactions.

3. What is the main difference between decentralized and centralized NFT marketplaces?

• Centralized NFT marketplaces require users to pay higher fees.
• Decentralized NFT marketplaces operate without intermediaries, while centralized ones rely on intermediaries and third-party service providers.
• Decentralized NFT marketplaces are only accessible in specific regions.
• Centralized NFT marketplaces allow buyers to trade directly with one another.

4. What are the advantages of using decentralized NFT marketplaces?

• Greater transparency, security, lower fees, and a more democratic approach to ownership and control.
• Centralized control, lack of security, and inconsistent pricing.
• Higher fees, less control, and limited accessibility for users.
• Slower transactions, limited payment options, and higher risks of fraud.

5. What are the potential drawbacks of using decentralized NFT marketplaces?

• High fees, centralized control, and slow transactions.
• Complexity, lower liquidity, and volatility.
• Limited availability, higher risks, and reduced security.
• Lack of technology, unreliable transactions, and government regulation.

6. Which blockchain is often used for NFTs?

• Litecoin
• Ethereum
• Bitcoin
• Dogecoin

7. What is the name of the largest all-in-one NFT marketplace?

• OpenSea
• Mintable
• Rarible
• Nifty Gateway

8. Which NFT marketplace has dethroned OpenSea as the largest by trading volume?

• Foundation
• Nifty Gateway
• Rarible
• Blur

9. What is the primary focus of Blur NFT marketplace?

• Ethereum-based NFTs
• Bitcoin-based collectibles
• Physical art pieces
• Centralized token sales

10. What is the name of the decentralized Solana NFT marketplace with high liquidity?

• Solana Market
• Magic Eden
• Crypto Gallery
• NFT Haven

11. How do smart contracts facilitate transactions in decentralized NFT marketplaces?

• Smart contracts handle putting NFTs for sale and allowing buyers to purchase them.
• Smart contracts are used solely for documenting ownership history.
• Smart contracts are only responsible for price arbitration between buyers and sellers.
• Smart contracts only verify user identities during transactions.

12. What is the purpose of integrating Metamask into a decentralized NFT marketplace?

• To facilitate communication between artists and buyers directly.
• To allow users to list their physical art for sale online.
• To enable users to create and manage their NFTs securely and efficiently.
• To provide users with access to all cryptocurrencies available.

13. What is the significance of using multiple payment options in a decentralized NFT marketplace?

• It eliminates the need for any payment verification, increasing fraud risk.
• It limits users to only cryptocurrency, making transactions more complex.
• It makes it easy for users to buy and sell NFTs using cryptocurrency or fiat currency, increasing accessibility and convenience.
• It decreases the number of potential buyers by focusing solely on fiat currency.

14. How do automatic royalty payments work in a decentralized NFT marketplace?

• Smart contracts enable automatic royalty payments for creators, ensuring they earn a percentage of future resales.
• Creators must request royalties each time their work is resold.
• Payments are handled by a central authority who distributes royalties manually.
• Royalties are only paid if the buyer agrees to pay them.

15. What is the primary benefit of using a single smart contract in an Algorand NFT marketplace?

• It simplifies the creation process for individual NFT contracts.
• It allows for easy listing of all NFTs being sold by listing all accounts opted in to the smart contract.
• It increases the speed of NFT transactions significantly.
• It guarantees lower transaction fees for all users.

16. What is the recommended way of creating an NFT marketplace on Algorand?

• Creating a centralized server for all transactions.
• Establishing a partnership with a single cryptocurrency exchange.
• Deploying a smart contract per NFT or using a single smart contract that stores many tokens.
• Using only traditional payment methods for purchases.

17. How can a decentralized NFT marketplace keep track of all NFTs without storing their IDs on a server?

• By using the Algorand network and its SDK to retrieve NFT information directly from the blockchain.
• By relying on third-party services to track NFT ownership and details.
• By generating random IDs for each NFT and storing them on users` devices.
• By manually recording all NFT IDs in a centralized database.

18. What is the role of ASA in an Algorand NFT marketplace?

• ASA is a type of cryptocurrency used for trading on other blockchains.
• ASA is a marketing tool for promoting Algorand`s NFT collections.
• ASA refers to a special wallet for storing Bitcoin only.
• ASA (Algorand Standard Asset) is used to create and manage NFTs on the Algorand blockchain.

19. What is the significance of conducting research on the target audience, major competitors, and industry trends in creating a successful NFT marketplace?

• It helps in understanding user needs and market dynamics, ensuring the marketplace meets user expectations and remains competitive.
• It allows for lower fees, making it easier to attract more users.
• It guarantees that no competitors can enter the market for a certain time.
• It ensures that all NFTs on the marketplace can be sold regardless of demand.

20. What are the two popular NFT smart contracts based on Ethereum’s blockchain?

• ERC-998 and ERC-5120
• ERC-20 and ERC-777
• ERC-1400 and ERC-721A
• ERC-721 and ERC-1155

21. How does the integration of the front end and backend ensure a user-friendly interface in an NFT marketplace?

• It limits access to only a few types of users, reducing overall usability.
• It ensures that the user interface is intuitive and easy to navigate, providing a seamless experience for users.
• It allows users to automate all transactions without needing any input.
• It requires users to write code to engage with the marketplace effectively.

22. What is the importance of conducting tests to guarantee the functionality and quality of an NFT marketplace solution?

• It simplifies the user registration process, making it faster and easier to join the platform.
• It guarantees that all transactions are processed within seconds, maximizing profits for sellers.
• It ensures that the marketplace is free from bugs and functions as intended, providing a reliable experience for users.
• It enables unlimited storage for all NFTs, ensuring users can keep their entire collection.

23. What is the primary advantage of using Binance NFT marketplace?

• It supports over 1500 cryptocurrencies as payment methods and offers very low minting fees.
• It allows users to create NFTs without any fees or requirements.
• It has the highest trading volumes among all NFT marketplaces.
• It guarantees instant sales for all listed NFTs regardless of market demand.

24. How does Nifty Gateway stand out from other NFT marketplaces?

• It focuses exclusively on physical art sales and traditional auctions.
• It allows users to mint NFTs for free without any fees or requirements.
• It only supports NFTs from a single blockchain network.
• It uses drops to market digital artists’ creations and features a detailed activity log for peer-to-peer transactions.

25. What is the significance of having no transaction fees in Crypto.com NFT marketplace?

• It reduces the cost for users, making it more attractive for trading NFTs.
• It makes it harder for users to track their transactions.
• It increases transaction speed for all types of currencies.
• It complicates the trading process for collectors and traders.

26. How does Crypto.com facilitate NFT trading via mobile devices?

• Mobile devices are used exclusively for creating new NFTs, not for trading.
• Trading NFTs on mobile devices requires downloading additional software.
• Users can only view NFTs on their mobile devices without trading options.
• Users can trade NFTs using their mobile devices, providing convenience and accessibility.

27. What is the primary focus of OpenSea NFT marketplace?

• OpenSea supports multiple chains, including Ethereum, Polygon, Arbitrum, Optimism, Solana, Binance’s BNB Chain, Avalanche, Base, and Klaytn.
• OpenSea exclusively sells digital art and collectibles.
• OpenSea only supports Bitcoin-based NFTs.
• OpenSea solely focuses on physical asset sales.

28. What are the key features provided by OpenSea for sellers and buyers?

• Sellers can only trade NFTs for other NFTs, and buyers cannot access sale histories.
• Sellers can only sell NFTs through auctions, and buyers can only make bids.
• Sellers must send their NFTs to OpenSea directly, and buyers can only pay with credit cards.
• Sellers can list NFTs for a fixed price or through auctions, and buyers can choose between these options.

29. How does the use of blockchain technology ensure that each NFT is unique and immutable?

• Blockchain guarantees uniqueness by allowing multiple users to edit NFT properties.
• Blockchain technology ensures that each NFT is unique and immutable by recording transactions on a decentralized ledger.
• NFTs are unique due to their association with individual cryptocurrencies only.
• Each NFT is unique because they are stored on a centralized database.

30. What is the role of Metamask integration in a decentralized NFT marketplace?

• To provide access to a wider range of cryptocurrencies for trading purposes.
• To ensure that NFTs can be minted directly on the platform, facilitating user creation.
• To restrict user access to only a specific type of NFT, enhancing exclusivity.
• To enable users to view their NFTs and manage their transactions within one wallet, streamlining the process for the user.