# Ledger Quests

By [Crypto Lemon](https://paragraph.com/@parlamentulcrypto) · 2023-03-23

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[https://quest.ledger.com/quests/welcome-to-web3](https://quest.ledger.com/quests/welcome-to-web3) - **WELCOME TO WEB3**

**NFTs are one category of digital assets. How exactly would you define an NFT?** A unique, non-fungible asset that exists as a token on the blockchain.

**Blockchains are the underlying infrastructure for Web 3.0. What access and benefits does Web 3.0 hold for you?** Web 3.0 enables ownership of your digital assets without the need for an intermediary.

**Which of the following is not true?** You can get physical cryptocurrencies from crypto issuance machines.

**Bitcoin is a first-generation blockchain. What is its main purpose**? To allow you to make transfers of value, without using a bank or central entity.

**You have transferred 1 Bitcoin to your friend. Who can view your transaction’s details?** Anyone can view it, it’s public.

**Your cryptocurrency is stored on the blockchain. Aside from being a unit of value, what other function do they serve?** It allows you to interact with the platforms and services built on a given blockchain network.

**Web 3.0 means you don’t need to rely on banks or intermediaries to access and store your wealth. But without banks - where is your crypto actually stored?** On the blockchain.

**How can you be sure that transactions on a blockchain are valid and correct?** The network nodes must reach consensus before adding new data.

**If we had first-generation blockchain networks, why was there a need for second-generation blockchain networks?** Innovation, other blockchain introduced the concept of value transfer with conditions: smart contracts.

**Which of the below most accurately describes what a public blockchain is?** A distributed ledger with immutable history, that’s accessible and auditable by everyone.

**How many different cryptocurrencies are there?** Thousands, across multiple blockchains, comprising multiple types of coin and token.

**Once your data is recorded on the blockchain, who from the following can change or update it?** No single entity.

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[https://quest.ledger.com/quests/how-to-own-crypto](https://quest.ledger.com/quests/how-to-own-crypto) - **HOW TO OWN CRYPTO**

**Scammers can steal your crypto by accessing your private keys or recovery phrase. How can that be achieved?**\- All listed answers

**What is a hardware wallet?**\- Wallets that generate and store private keys offline to keep them protected from hacks.

**You have generated your private keys in a software wallet that runs on an internet connected device. Which of the following is a false statement?**\- Your keys will always remain secure since they are stored offline.

**Exchange wallets are considered to be custodial wallets, what does it mean?**  
The exchange custodies your assets, it owns the private keys, you only get a username and password.

**Which of the following recovery phrase statements is TRUE?** Your recovery phrase can restore your keys on a multitude of devices and wallet providers.

**One common crypto hack is for scammers to deploy malware to your device via a malicious link. This malware can search for your private key, but what else is it capable of?** Tamper with your software wallet interface to trick you into sending assets to the wrong address.

**What is the purpose of a crypto wallet?** It generates your keys and helps you secure them.

**Blind signing is one smart contract scam that gets you to “open the door” to your crypto, using clever social engineering. But why is it known as “blind signing”?** Because it requires you to sign a transaction without knowing its details or repercussions.

**What is a recovery phrase?** A phrase generated by your wallet as a backup of all the private keys stored on it.

**What are public and private keys?** Public keys are your address on the blockchain, private keys allow you to control any assets sent to that address.

**How should you store your recovery phrase?**  
Note it down, don’t show it to anyone, keep it offline and store it somewhere safe that’s fire/water proof.

**Smart contracts offer a plethora of innovative use cases, but they also come with risks, what are they?** Crypto wallets can’t always translate smart contracts’ data into a human readable language.

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[https://quest.ledger.com/quests/ledgers-ecosystem](https://quest.ledger.com/quests/ledgers-ecosystem) - **LEDGER'S ECOSYSTEM**

**Why are Ledger devices considered to be the safest way to hold and manage cryptocurrencies?** Ledger devices generate and secure your private keys offline, they’ve never been hacked.

**What crypto services can be accessed via the apps on Ledger Live?** All listed answers.

**What is Ledger Live’s decentralized app (dApp) Catalog?** A catalog of dApps providing different services that you can access and clear-sign from within the security of your Ledger.

**Ledger protects your private keys from hacks thanks to a military grade security chip, called the “Secure Element”. Where are these chips commonly used?** All answers listed.

**If your Ledger gets lost or stolen, how can you be sure that your funds are safe?** The device is protected by a PIN code, and will factory reset after three wrong attempts.

**When you set up your new Ledger device, which piece of data is chosen by YOU?** The PIN code.

**In what way does Ledger ensure your recovery phrase is secure from the beginning?** It generates and displays it on a trusted display.

**What role does Ledger’s custom operating system, BOLOS, play in securing your assets?** It isolates all the applications on the device from one another, which protects your private keys.

**How can you authenticate transactions using your Ledger?** Every transaction needs to be verified on the trusted display and physically confirmed.

**What is the purpose of Ledger’s browser extension?** All listed answers.

**How does Ledger Live help secure your assets?** By providing you with firmware updates and the ability to see essential transaction details before signing.

**What is Ledger Live?** It’s a companion app that helps you manage your assets and access a wide variety of crypto services.

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[https://quest.ledger.com/quests/web3-security-essentials](https://quest.ledger.com/quests/web3-security-essentials) - **WEB3 SECURITY ESSENTIALS**

**How would you classify a cryptocurrency shill?** Someone who advocates for a project because they’re receiving a payment or have a stake in it.

**Which of the following data can you verify on Etherscan?** Transaction history, token supply, distribution, project value and smart contract details.

**Why is it important to understand the token distribution of a project during your research?** To assess risks, if few people control the supply, they can manipulate the price.

**How can you best use Twitter and Discord when doing your research?** It allows you to get a feel of the team, the community and its overall engagement.

**You just bought your first Ledger, how can you secure the crypto & NFTs that you already own?**  
Set up your new Ledger as a new device, in Ledger Live create new accounts, and send your assets to the new accounts.

**Why does recovering your software wallet on your new Ledger device leave your crypto at risk?** Your private keys were already exposed to internet connection - securing them on a Ledger will not protect your data from anyone who’s already accessed them.

**What kind of scams are prevalent in the web3 space?** All listed answers.

**Which of the following are considered to be red flags to look out for when doing your own research (DYOR)?** All listed answers.

**Why is segregating assets across multiple accounts a highly recommended crypto security strategy?** It enables you to mitigate risks associated with signing malicious transactions, a signature executed via one account does not impact the other ones.

**Web3 is all about freedom, but with freedom comes responsibility. If you get scammed, how can you get your stolen crypto back?** Unfortunately, you can’t.

**What measures of precautions should you take to secure your assets if you are about to blind sign a transaction?** All listed answers.

**It is important to Do Your Own Research (DYOR) before buying into a project. Which of these are your best tools for DYOR?** - Read the project’s whitepaper, analyze its activity on Etherscan, ask official team members and moderators on Discord and evaluate the answers and most importantly be patient.

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*Originally published on [Crypto Lemon](https://paragraph.com/@parlamentulcrypto/ledger-quests)*