Blockchain Wallets and Key Management Techniques BBLC Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   A user receives an urgent email that appears to be from their wallet provider, warning that their account will be suspended unless they click a link and enter their 24-word recovery phrase. The user is about to comply. What is the most important reason to stop and verify the request?

   • AThe user should first check the email's spam folder to see if it is legitimate
   • BLegitimate wallet providers never ask for a recovery phrase via email or website forms
   • CThe email may contain a virus that will infect the computer
   • DThe user should reply to the email to confirm the sender's identity
   Reveal Solution Discussion Select an answer first
2. 27expert · hard

   A user has a 24-word recovery phrase for a hardware wallet. The user wants to create a backup that is resistant to both physical theft and digital hacking. The user is considering splitting the phrase into three parts and storing each part in a different location. What is the main risk of this approach?

   • AIf one part is lost, the user may not be able to reconstruct the full phrase, depending on the splitting scheme
   • BThe user might forget which part goes where
   • CStoring parts in different locations increases the risk of physical theft
   • DSplitting the phrase makes it easier for an attacker to guess the missing words
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   An employee created a new HD wallet for a departmental pilot. The wallet displayed a 24-word mnemonic phrase during setup. The employee wants to back it up securely. Which action is the most appropriate?

   • ATake a photo of the words and store it in the company cloud drive
   • BSave the words in a password-protected note on the same laptop
   • CWrite the words on paper and store them in a locked office safe
   • DEmail the words to the department manager for safekeeping
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   Why is high-quality randomness critical when generating a private key for a blockchain wallet?

   • ABecause randomness ensures the public key is unique across all wallets.
   • BBecause randomness determines the blockchain network the wallet connects to.
   • CBecause a predictable private key could be guessed or brute-forced by attackers.
   • DBecause randomness is used to encrypt the private key for storage.
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   What is the primary security advantage of using a hardware wallet for private key storage?

   • AThe private key is regenerated each time the wallet is used.
   • BThe private key never leaves the device and is protected by a secure element.
   • CThe private key is stored in the cloud and accessible from any device.
   • DThe private key is encrypted with a password that is stored on the device.
   Reveal Solution Discussion Select an answer first