Why Is It Important to Follow the Same Interfaces

question 78

Multiple Choice

Why is it important to follow the same Interfaces?

• A) Websites that try to interface with the Token would have to know the exact ABI. It is upfront clear how the interaction has to be with the standard Interfaces.
• B) The Ethereum Foundation can easily validate the Tokens and approve any audits by following the standard interface.

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Definitions:

Annualized (Geometric)

Annualized (geometric) refers to the method of calculating an average rate of return that accounts for the compounding effect over a period.

Rates of Return

The increase or decrease in value of an investment during a given time frame, shown as a percentage of the original investment cost.

World Stock Portfolio

A collection of stocks from companies located in various countries around the world, aiming for global diversification.

Volatility

Refers to the degree of variation of a trading price series over time, commonly measured by the standard deviation of logarithmic returns, indicating the risk associated with a security or market.