Web3 Interview Questions & Answers

Web3 Interview Questions

Outline

This is a comprehensive guide on web3 interview questions. It has three sets of important Web3 interview questions and answers: Beginners, Intermediate and Advanced.

With the help of our sure-fire web3 interview preparation guide, you can ace your upcoming interview and land your dream position as a web3 developer.

Introduction - Web3 Interview Questions and Answers

The term Web3 was coined in 2014 by Gavin Wood, founder of Polkadot and co-founder of Ethereum.

Imagine a brand-new Internet that is safe, decentralised, and unfettered by the powerhouses of Silicon Valley. That is the goal of Web 3.0, which is seen as the next stage in the development of the Internet.

As a web3 developer, your average salary will be in the range of $70,000 to well over $350,000 per year. It’s all because of numerous web3 development opportunities.

In December 2021, there were approximately 18,000 active Web3 developers, according to a recent report. 20% of the brand-new recruits selected Ethereum as their ecosystem, and 60% of them only joined in 2021.

These 18,000+ developers are actively working on open-source crypto and Web3 projects. There are many firms that have pledged $150+ million to support Web 3.0 startups.

As of 2022, businesses in the US, and California in particular, appear to pay Web3 developers more than businesses elsewhere in the world.

Web 3.0 has become the newest buzzword, and many developers are turning towards this new technology to explore. The fast-paced development of Metaverse, Cryptocurrency, NFTs, and other imaging tech has left the world open for developers. If you are trying to ace your next web3 job interview, dive in and get the answers for top 20 web3 interview questions.

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Let us look the chart to get an idea of salaries according to location:

Web3 interview questions for Beginners

1. Define Smart Contracts.

If the parties to a digital contract comply with its stated conditions, smart contracts automate the execution of those contracts. Thus, it uses Blockchain technology to facilitate, execute, and enforce an agreement.

2. How Can Businesses Use Web3?

Web 3.0 is the “Learning Web” in which database systems are used to capture and store information about specific consumers, and use it to develop stronger relationships between the company and the individual consumer. Web 3.0 is already used extensively in advertising to focus the message on individual consumers because the database knows the interests and preferences of the individual. Outside of advertising, Web 3.0 can be used in selling tokens via NFTs, promoting data privacy, and many other contexts.

3. How Web3 Supports Decentralisation?

Decentralization is the opposite of centralization. It refers to the distribution of things such as power, control, or trust among many people and perhaps all of them. We can rename Web3 as the decentralized internet because it is autonomous, robust, stateful and provides native built-in payments.

4. What are Some Critical Characteristics of Web3?

Decentralized

No single system has access to all the data in Web3 since the data is kept in blockchain. It is distributed between many systems. This encourages many failure points and decentralised access.

Permissionless

Users of Web3 don’t require any special authorization to access the internet. Specific services will be accessible to users without requiring them to provide any personal information. There is no need to provide any other data or compromise privacy.

Secure

Web 3.0 is significantly safer than Web 2.0. Because hackers will find it extremely difficult to target specific databases due to decentralization.

5. Give a Few Examples of Web3 Solutions

Web3’s full development is still going on. One burning example is Decentralized Finance also known as DeFi. Some other examples are:

Diaspora – A decentralized social network without compromising privacy.
Steemit – A social and blogging platform based on Blockchain.
Augur – A trading market for decentralized exchange.
OpenSea – A Marketplace for NFT
Uniswap – A cryptocurrency exchange
Everledger – Supply chain platform based on Blockchain

6. Which Programming Language is Most Suitable for Developing Decentralised Software and Smart Contracts?

The most popular programming language for creating smart contracts and decentralised applications (dApps) is Solidity.

Intermediate Web3 Interview Questions

With practice, you will be able to respond to basic web3 interview questions with ease as a developer.

We have gathered some challenging web3 interview questions for you in this part. You can get assistance from this section with these precise types of intermediate Web3 interview questions you might face while looking for work.

7. What is the Role of DAO in Web3?

The DAO solves the fatal flaw in the joint-stock limited liability company where only a few people can buy shares and get rewarded in the form of dividends, and also they take important decisions that impact billions of users.

Users of these networks contribute all the value they can but in return receives no reward. They also don’t have any control over how the network is run.

Users choose how resources are distributed in the DAO, which is open and transparent.

DAOs, a digital, global organisational structure with broad-based governance, will take control when Web3 arises. a corporate structure that is suitable for fostering reliable peer-to-peer relationships.

8. State the Differences Between Web2 and Web3

Web2 enabled functionalities like reading and writing for users to interact with content or data while Web3 focuses on combining these data with meaning and increasing trust.

Web2 Uses technologies like AJAX and JavaScript, HTML5, and CSS3. Web3 uses ML, deep learning, semantic web, and decentralized technologies.

Web2 uses government-issued currency like US dollars. But Web3 uses cryptocurrencies.

9. What are the differences between the Ethereum blockchain and Bitcoin?

The creation of Bitcoin was intended to offer a substitute for fiat money. On the other hand, the Ethereum platform was developed to support programmable, immutable contracts and applications through the usage of ETH, which is its very own cryptocurrency. Furthermore, transactions on Ethereum are finished in a matter of seconds as opposed to minutes on Bitcoin. Additionally, whereas Bitcoin is only a money, the Ethereum platform is a ledger technology that businesses are using to create new programmes and decentralised apps. As a result, the Ethereum blockchain is also the more robust of the two.

10. How does the PoW Consensus Work?

The goal of PoW consensus is to arrive at as many forecasts as possible as soon as possible by solving challenging mathematical puzzles. As a result, a lot of computer power is needed, and a miner might become more profitable by using more effective mining machinery. Furthermore, mining pools compete with one another to see who can use this type of the consensus process to estimate the maximum number of feasible hashes for a specific block earliest. As a result, when a miner finds a solution, they notify the network as a whole and are rewarded in Cryptocurrency.

11. How does the PoS consensus work?

12. What do you mean by dApps?

Digital programmes known as “dApps” operate on a peer-to-peer (P2P) network of computers as opposed to a single central server.

13. Which consensus does Ethereum use?

Ethereum, just like Bitcoin is currently using PoW (proof of work) consensus protocol, but with the transition into ETH 2.0 proof of work will be dropped and ETH will become PoS – proof of stake.

On 15th September 2022, the Ethereum network shifted from Proof-of-Work (PoW) to Proof-of-Stake (PoS) model.

14. Name some of the Blockchain-based smart contracts.

– Ethereum

– NEM

– RSK

– Hyperledger

– EOSIO

15. Name some different types of Ethereum networks.

Mainnet – It is the primary public Ethereum production blockchain. The actual-value transactions occur on this ledger.

Testnets – Developers use these Testnets. Before deploying their smart contract on the live blockchain, they test it. Since smart contracts are immutable once they are deployed, testing is essential.

Advanced Web3 interview questions

This section contains some advanced interview questions for Web3 jobs. Read and Understand how these complex technologies work and how they help businesses.

16. What distinguishes Proof-of-Work from Proof-of-Stake?

For understanding both the consensus algorithm in detail, you must know the difference between them. Proof of work differs from Proof of Stake, some significant differences are:

– Energy Consumption

Proof of Work uses a lot of electricity and energy. Proof of Stake uses less energy in comparison.

– Tools Required

For proof of work consensus protocol, heavy equipment like computers with GPU and hard drives are used to perform these mining operations.

On the other hand, Proof of Stake does not require any tools or equipment as heavy computation and complex activity are avoided.

– Security

In terms of security, proof of work offers high security in terms of security as miners have to crack the hash functions to create or validate the new block. Whereas, Proof of stake also creates a secure network and locks the crypto.

– Rewards

The first miner to solve the equation receives the rewards under the Proof of Work system. Bitcoin is used as payment for the awards. Proof of stake, on the other hand, does not provide block or coin incentives. The validators, therefore, take the transaction costs in their place.

17. What is the first item you need to define when creating a Solidity file?

The initial step in generating a Solidity file is to declare a class. You must first declare the version number of Solidity in order to prevent compilation issues brought on by incompatibilities between different versions of Solidity.

18. How familiar are you with hardware wallets for the Ethereum blockchain?

If you want a wallet with a high level of security, think about getting this one crypto wallet. In there, private keys are more secure because they are kept on a physical chip. Furthermore, digital wallets do not require an internet connection to secure your cryptocurrency from hacker threats.

19. Do you know of any wallets that can hold ETH?

One of the top Ethereum wallets is Meta Mask. It makes it easier to send, receive, and store ETH and ERC20.

20. Tell us about the truffle.

It is a platform for creating and overseeing dApps and smart contracts. This platform is free and open-source. As a result, it is well acknowledged as the top framework for Ethereum developer experts.

21. Explain Ethereum Virtual Machine.

The Ethereum Virtual Machine (EVM) makes use of a network of public nodes to execute programmes. EVM is additionally operated in a sandboxed environment that keeps it isolated from the rest of the network. It’s the perfect environment for testing.

22. What is the function consensus algorithm?

A blockchain’s consensus mechanism determines who may contribute new blocks of transactions and ensures that the various participants accept the authenticity of the given transactional data. It also stops users from making any unauthorised changes.

Conclusion

Whether you’re a developer getting ready for an interview or a hiring manager trying to find the ideal candidate, we believe these web3 interview questions and answers will be a tremendous help to you during the process.

Keep in mind that technical proficiency is only one aspect of the hiring process. Both prior experience and soft skills are essential if you want to be hired for a high-paid web development position.

Keep in mind that many of the Web3 interview questions are open-ended. Not just the answer you memorised, but also your reasoning will be of interest to the interviewer. Always be prepared to address any follow-up inquiries about how you came to your conclusion. Describe the way you think.

Good Luck! Regarding your future web3 interview. You can browse through our listings for web3 developer jobs here.