Incident Response and Risk Mitigation BBLC Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A cryptocurrency exchange wants to reduce the risk of a single compromised key leading to a large unauthorized withdrawal. The exchange currently uses a single hot wallet key for all customer withdrawals. Which mitigation strategy best addresses this specific risk?

   • AImplement a multi-signature wallet requiring approval from three different authorized executives for any withdrawal above a preset threshold.
   • BMove all customer funds to a cold wallet and process withdrawals manually once a day.
   • CDeploy a network monitoring tool that alerts when a withdrawal exceeds 1% of the exchange's total holdings.
   • DIncrease the frequency of hot wallet key rotations from monthly to weekly.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Which action is an example of eradication in a blockchain incident response?

   • ARestoring data from a backup
   • BDisconnecting a compromised node from the network
   • CDocumenting the incident in a report
   • DRemoving malicious smart contract code from the network
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A blockchain-based voting system uses a smart contract to tally votes. A security audit identified a vulnerability that could allow a malicious actor to cast multiple votes. The team has a limited budget and must choose one mitigation. Which mitigation is most effective?

   • AAdd a monitoring system that alerts when multiple votes are cast from the same IP address.
   • BPatch the smart contract to fix the vulnerability that allows multiple votes.
   • CRequire voters to complete a captcha before casting a vote.
   • DIncrease the number of nodes in the network to improve redundancy.
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A blockchain analytics firm wants to detect a potential smart contract exploit in real time. The firm monitors a popular DeFi protocol. Which detection tool or technique would be most effective for identifying an ongoing exploit?

   • AMonitor the protocol's social media accounts for any announcements of vulnerabilities.
   • BConduct a weekly manual review of the smart contract's code for new vulnerabilities.
   • CTrack the total value locked (TVL) in the protocol and alert when it drops by more than 5%.
   • DSet up alerts for unusual transaction patterns, such as a sudden spike in gas usage or a series of rapid, identical function calls to the same contract.
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A company has just finished responding to a ransomware attack that affected its blockchain nodes. The incident response team is now in the lessons learned phase. Which action is MOST appropriate?

   • ABlame the employee who opened the phishing email.
   • BDelete all evidence of the attack to avoid regulatory scrutiny.
   • CConduct a review meeting to discuss what went well and what could be improved, and update the incident response plan.
   • DImmediately implement new security measures without reviewing the incident.
   Reveal Solution Discussion Select an answer first