Quiz: XRPL Protocol Primitives 4 questions · 80% to pass 1. What is the fundamental architectural difference between XRPL and Ethereum for financial operations?XRPL is faster but less secureXRPL builds financial operations at the protocol level; Ethereum requires smart contractsEthereum has more features than XRPLXRPL uses proof of stake while Ethereum uses proof of workXRPL bakes financial primitives (DEX, AMM, escrow, clawback, trust lines) into the ledger itself. Ethereum requires each operation to be deployed as a separate smart contract, each with its own codebase and attack surface.2. Trust lines on XRPL prevent which problem that exists on Ethereum?High gas feesSlow transaction settlementUnwanted tokens being sent to your wallet without consentDouble-spending attacksTrust lines require explicit opt-in to hold an issued asset. You must create a trust line to an issuer before receiving their token. On Ethereum, anyone can send any ERC-20 token to any address without the recipient's consent.3. Clawback on XRPL is critical for securities because:It makes tokens more valuableRegulators require the ability to freeze and recall assets for complianceIt prevents all fraud automaticallyIt increases transaction speedClawback allows issuers to recall tokens in cases of fraud, sanctions violations, or court orders. Regulators require this capability for securities. XRPL makes it a native protocol feature rather than requiring custom smart contract implementations.4. XLS-70 credentials solve which problem for institutional blockchain adoption?Reducing transaction costsEnabling faster consensusVerifying KYC/AML compliance on-chain without exposing personal informationAllowing anonymous transactionsCredentials allow a KYC provider to attest that an address has passed identity verification without publishing the holder's personal data on a public ledger. Verify without revealing. Check answers Retake quiz Back to lesson Next lesson →