Incident Response and Risk Mitigation BBLC Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A company experienced a smart contract exploit that resulted in a loss of funds. After containing and eradicating the issue, the incident response team is conducting a post-incident analysis. What is the PRIMARY goal of this analysis?

   • ADelete all logs related to the incident to protect the company's reputation.
   • BRecover the lost funds from the attacker.
   • CIdentify which employees to blame for the incident.
   • DDocument the root cause and update the incident response plan to prevent recurrence.
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   In the incident response lifecycle, which phase involves restoring affected blockchain systems to normal operation while ensuring data integrity and availability?

   • AEradication
   • BDetection
   • CLessons Learned
   • DRecovery
   Reveal Solution Discussion Select an answer first
4. 13expert · hard

   A company's blockchain network has been hit by a smart contract exploit that drained funds from a specific contract. The exploit is still active, and the attacker is continuing to drain funds. The company has a backup of the contract's state from before the exploit, but restoring it would cause a rollback of legitimate transactions. The company must balance stopping the attack with minimizing disruption. What is the BEST immediate action?

   • AImmediately restore the backup to undo the exploit, even if it rolls back legitimate transactions.
   • BPause the affected contract to stop the drain, then assess the situation before deciding on a rollback.
   • CTransfer all remaining funds to a new contract immediately.
   • DDo nothing and let the exploit run its course.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A blockchain-based voting system is preparing for a national election. The team wants to ensure that any attempt to manipulate the voting records is detected quickly. Which combination of incident response preparation and detection measures is most effective?

   • AIncrease the number of validator nodes to make it harder for any single entity to gain majority control.
   • BConduct a post-election audit of all transactions to identify any anomalies after the voting period ends.
   • CDeploy real-time monitoring of block production and transaction patterns, and establish a pre-defined incident response team with clear roles for containment and recovery.
   • DStore all voting records on a public blockchain to ensure transparency and immutability.
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A decentralized finance (DeFi) protocol is conducting a risk assessment. The team has identified three assets: (1) a smart contract holding $50M in user funds, (2) a governance token with no direct financial value, and (3) a public API endpoint that provides market data. The smart contract has a known reentrancy vulnerability, the API has a history of minor data delays, and the governance token has never been exploited. Which asset should receive the highest mitigation priority?

   • AThe smart contract, because it holds the largest financial value and has a known exploitable vulnerability.
   • BAll three equally, because any vulnerability in a blockchain system can lead to a loss of trust.
   • CThe governance token, because it controls protocol decisions and could be targeted by a governance attack.
   • DThe API endpoint, because it is externally accessible and any delay could disrupt market data consumers.
   Reveal Solution Discussion Select an answer first