A consortium of banks is deploying a permissioned blockchain for cross-border payments. They need a governance model that allows rapid technical upgrades but also ensures that regulatory requirements are met and that all member banks have a voice. Which governance approach is most appropriate?

Hybrid governance with an off-chain council for strategic decisions and on-chain voting for technical parameters

Pure on-chain governance with token-weighted voting

No formal governance, relying on informal agreements among member banks

Pure off-chain governance through a member council

In blockchain governance, what is the primary role of miners or validators?

To propose and vote on protocol changes

To secure the network by validating transactions and adding blocks

To hold tokens and vote on governance proposals

To develop and maintain the core software code

A blockchain network is planning to adopt a hybrid governance model. They want to use on-chain voting for routine parameter changes, but they also want a group of domain experts to handle emergency security patches. Which design best reflects this hybrid approach?

Routine changes use off-chain forums, and emergency patches use on-chain voting

All changes, including emergencies, go through on-chain voting

All changes are decided by the security council

Routine changes use on-chain voting, while a security council can implement emergency patches with post-hoc review

What is a primary characteristic of off-chain governance?

All decisions are automatically executed by smart contracts

Decisions are made through human deliberation and social coordination

Voting power is determined by the amount of cryptocurrency held

Governance rules are immutable and cannot be changed

A new blockchain network wants to implement on-chain governance to allow token holders to vote on protocol upgrades. The network is concerned about low voter turnout. Which design choice is most likely to increase participation?

Making voting mandatory for all token holders

Restricting voting to a small group of core developers

Implementing delegated proof-of-stake so token holders can delegate their voting power

Requiring a high quorum for all proposals

EC-CouncilBlockchain Business Leader Certification

Domain 7Objective 1

Governance Models for Blockchain Networks BBLC Practice Questions (Page 2)

Part of the Governance, Regulation, and Compliance domain, which makes up ~8% of our current practice bank.

49questions here

10free pages

9concepts

9 Concepts in This Objective

Blockchain Governance Fundamentals
On-Chain Governance Models
Off-Chain Governance Models
Hybrid Governance Models
Stakeholder Roles and Responsibilities
Decision-Making and Voting Mechanisms
Governance Security and Attack Vectors
Regulatory and Compliance Considerations
Case Studies of Governance in Practice

Questions 6–10

6application · medium
A consortium of banks is deploying a permissioned blockchain for cross-border payments. They need a governance model that allows rapid technical upgrades but also ensures that regulatory requirements are met and that all member banks have a voice. Which governance approach is most appropriate?
Select an answer first
7foundation · easy
In blockchain governance, what is the primary role of miners or validators?
Select an answer first
8application · medium
A blockchain network is planning to adopt a hybrid governance model. They want to use on-chain voting for routine parameter changes, but they also want a group of domain experts to handle emergency security patches. Which design best reflects this hybrid approach?
Select an answer first
9foundation · easy
What is a primary characteristic of off-chain governance?
Select an answer first
10application · medium
A new blockchain network wants to implement on-chain governance to allow token holders to vote on protocol upgrades. The network is concerned about low voter turnout. Which design choice is most likely to increase participation?
Select an answer first

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