Ethereum Insurance Protocol Developments Quiz

1. What is the main concept introduced in the `Collaborative and parametric insurance on the Ethereum blockchain` paper?

• The paper introduces a blockchain-based insurance scheme that integrates parametric and collaborative elements.
• The paper evaluates the risks of blockchain technology unrelated to insurance.
• The paper focuses solely on traditional insurance methods without blockchain.
• The paper discusses decentralized finance without insurance elements.

2. Who are the surplus providers in the Ethereum insurance scheme?

• Surplus providers lock funds in a smart contract.
• Surplus providers calculate the premiums for policies.
• Surplus providers issue insurance policies directly to users.
• Surplus providers manage the funds for investors.

3. How are participants` token rights structured in the insurance scheme?

• Tokens are distributed to all participants, reflecting their stake in the system.
• Tokens are allocated randomly to participants without criteria.
• Tokens are solely issued to surplus providers based on contributions.
• Tokens are given only to policyholders based on their premiums.

4. Which programming language is utilized for smart contract development on Ethereum?

• Solidity
• Python
• C++
• JavaScript

5. On which network is the insurance smart contract deployed?

• Binance Smart Chain
• Main Ethereum network
• Ropsten network
• Sepolia testnet

6. What is the function of premium loading within this insurance framework?

• The premium loading directly adds to policyholders` coverage amounts.
• The premium loading increases the initial investment requirement for surplus providers.
• The premium loading is solely for funding marketing expenses and promotions.
• The premium loading covers management costs and provides returns for investors, with a portion redistributed to policyholders in the form of protocol tokens.

7. How do policyholders receive compensation for claims under this Ethereum insurance model?

• Policyholders receive gift cards.
• Policyholders receive ETH payments.
• Policyholders receive cash payments.
• Policyholders receive DAI tokens.

8. What does the Solvency Capital Requirement (SCR) represent in insurance terms?

• The minimum capital required to cover the risk.
• The amount of premium paid by policyholders.
• The maximum profit allowed in insurance contracts.
• The total assets owned by an insurance company.

9. What occurs if the smart contract`s funds fall below the predetermined Minimum Capital Requirement (MCR)?

• All contracts become void immediately.
• The funds are automatically returned to surplus providers.
• The system files for bankruptcy and reimburses policyholders.
• A penalty fee is charged to investors.

10. What advantages do investors gain from holding tokens in the insurance model?

• Investors are guaranteed a fixed return regardless of market conditions.
• Investors receive voting rights and share of insurance pool surplus.
• Investors receive exclusive access to all insurance policy details.
• Investors must pay fees to hold their tokens indefinitely.

11. Which consensus algorithm is currently adopted by the Ethereum network?

• Delegated Proof-of-Stake (DPoS)
• Proof-of-Stake (PoS)
• Byzantine Fault Tolerance (BFT)
• Proof-of-Work (PoW)

12. What role do smart contracts play in the Ethereum ecosystem?

• Smart contracts serve as manual transaction processors in Ethereum.
• Smart contracts automate trustless transactions in Ethereum.
• Smart contracts create physical assets in the Ethereum network.
• Smart contracts only store user data in Ethereum.

13. How do Ethereum nodes communicate within the network?

• Ethereum nodes communicate using HTTP requests.
• Ethereum nodes communicate using a peer-to-peer network.
• Ethereum nodes communicate using the Ethereum blockchain protocol.
• Ethereum nodes communicate using email services.

14. What is the significance of private keys in Ethereum transactions?

• Private keys track transaction history.
• Private keys are used to mine new Ether.
• Private keys encrypt user data.
• Private keys are used to sign transactions.

15. What is the purpose of gas fees in executing smart contracts?

• Gas is a flat fee charged by miners for all transactions executed.
• Gas determines the maximum amount of data that can be stored on the blockchain.
• Gas is used to pay for the computational effort required to execute smart contract functions.
• Gas is used as a reward for users providing liquidity to exchanges.

16. What happens to a transaction if gas runs out before completion?

• All state changes are reversed, and the used Ethereum Gas is given to the miner.
• The transaction is automatically approved and executed.
• The funds are refunded to the sender immediately.
• The transaction is saved in the blockchain for future processing.

17. What is the function of Remix regarding smart contracts?

• Remix is a wallet service for storing digital assets securely.
• Remix is an online tool used to deploy, test, and develop smart contracts.
• Remix is a cryptocurrency exchange platform for trading tokens.
• Remix is an auditing service for smart contracts to ensure compliance.

18. How do transactions differ between Bitcoin and Ethereum in checking account states?

• Bitcoin checks unspent transaction outputs (UTXO), while Ethereum checks the latest account balance.
• Bitcoin uses account balances while Ethereum checks the transaction history.
• Bitcoin tracks all transactions and Ethereum uses UTXOs for state checking.
• Bitcoin verifies the latest account state and Ethereum validates UTXOs.

19. What is the primary use case for a Testnet in Ethereum?

• The Testnet is used for creating new Ethereum mainnets.
• The Testnet is used for storing real user data securely.
• The Testnet is used for testing DApps and smart contracts without real Ether.
• The Testnet is used for building physical infrastructure.

20. Is real Ether necessary for testing decentralized applications and smart contracts?

• Yes, real Ether is necessary for all tests.
• No, you can use free Ether in test networks.
• No, only real Ether from the mainnet is sufficient.
• Yes, testing requires acquiring Ether from exchanges.

21. How is spending accounted for in smart contracts with respect to costs?

• Contract operations always incur transaction costs regardless of changes.
• Spending is free as long as the balance is above zero.
• Spending that modifies the contract incurs Gas costs.
• All spending in smart contracts incurs a flat fee.

22. What yield can users achieve through the Insurance Liquidity feature in Bright Union?

• 5-10% APY
• 50-60% APY
• 30-35% APY
• 15-25% APY

23. What variety of insurance products does Bright Union provide?

• Bright Union focuses solely on health insurance plans.
• Bright Union specializes in auto insurance exclusively.
• Bright Union only provides life insurance products.
• Bright Union offers various types of insurance products including protocol risk insurance.

24. How does the Integrator service streamline API development for insurance products?

• The Integrator service automates customer service responses for insurance inquiries.
• The Integrator service generates in-depth insurance policy documentation automatically.
• The Integrator service allows developers to integrate insurance products into any app or wallet with just three lines of code.
• The Integrator service provides analytics tools for assessing insurance risks.

25. What are the two types of coverage offered by Neptune Mutual?

• Flexible and Fixed Covers
• Comprehensive and Limited Covers
• Standard and Extended Covers
• Dedicated Covers and Diversified Covers

26. How does Neptune Mutual facilitate quick payouts to users?

• Users must submit a detailed claim and wait for approval.
• Users can collect stablecoin payouts immediately without providing personally identifiable information or evidence of loss.
• Users receive payouts only after a long review process.
• Users must provide extensive documentation to access payouts.

27. What role does the SDK play in integrating insurance features within DeFi applications?

• The SDK evaluates insurance claims from users automatically.
• The SDK allows DeFi apps to integrate Neptune Mutual`s insurance features directly.
• The SDK prevents unauthorized transactions within DeFi applications.
• The SDK provides investment advice for DeFi projects.

28. What unique token does Nexus Mutual use for its operations?

• BTC
• NXM
• LTC
• ETH

29. How does Nexus Mutual cultivate a self-sustaining insurance ecosystem?

• Members can stake NXM tokens to provide underwriting liquidity, creating a self-sustaining ecosystem.
• Members trade NXM tokens to invest in external projects without any returns.
• Members participate in games to earn NXM tokens and build social connections.
• Members donate NXM tokens to charity organizations as part of a community initiative.

30. What are the functions of the payment and underwriting pools in InsurAce?

• These pools are solely for investment returns and do not involve insurance.
• These pools focus on marketing strategies for attracting new users.
• These pools exclusively handle customer complaints and support issues.
• These pools manage the community funds and facilitate risk management.