A company wants to build a Web3 application where users can log in without creating a username and password. Instead, users should authenticate using their own cryptographic keys. Which approach aligns with Web3 principles?

Use a wallet-based authentication system where users sign a message with their private key

Use a centralized identity provider that issues tokens to users

Issue a hardware token to each user that must be plugged in

Store user passwords in an encrypted database and use them for login

A DAO that manages a decentralized insurance protocol wants to automate claim payouts. They want to reduce the risk of fraudulent claims while ensuring that legitimate claims are paid quickly. Which mechanism should they implement?

Require every claim to go through a full community vote before payment.

Let a single administrator approve all claims.

Use smart contracts that automatically pay out claims when predefined conditions are met, with a dispute-resolution process for contested claims.

Pay all claims automatically without any verification.

A healthcare data-sharing consortium wants to allow patients to control who accesses their medical records and to ensure that access is logged transparently. They are considering blockchain technology. Which design best aligns with Web3 principles while respecting privacy regulations?

Store all medical records directly on a public blockchain for full transparency.

Store medical records off-chain in encrypted storage and record access permissions and audit logs on a permissioned blockchain.

Use a centralized hospital database and share access logs via email.

Use a private blockchain controlled by a single hospital to store all records.

What is the primary role of a Decentralized Autonomous Organization (DAO) in Web3?

To store user data securely on a centralized server.

To provide a centralized management layer for decentralized applications.

To enable community-driven governance and decision-making through smart contracts and token voting.

To replace all traditional legal entities with automated code.

A gaming company wants to let players trade in-game items with each other without a central marketplace and without trusting the company to mediate disputes. Which Web3 approach best meets this requirement?

Store item ownership in a centralized database and allow direct trades

Issue items as NFTs on a public blockchain and use smart contracts for trades

Create a peer-to-peer network with no on-chain records

Use a private permissioned ledger controlled by the company

EC-CouncilBlockchain Business Leader Certification

Domain 8Objective 3

Principles of Web3 and the Role of DAOs BBLC Practice Questions (Page 4)

Part of the DeFi, NFTs, and Web3 Business Models domain, which makes up ~6% of our current practice bank.

35questions here

7free pages

2concepts

Questions 16–20

16application · medium
A company wants to build a Web3 application where users can log in without creating a username and password. Instead, users should authenticate using their own cryptographic keys. Which approach aligns with Web3 principles?
Select an answer first
17application · medium
A DAO that manages a decentralized insurance protocol wants to automate claim payouts. They want to reduce the risk of fraudulent claims while ensuring that legitimate claims are paid quickly. Which mechanism should they implement?
Select an answer first
18application · medium
A healthcare data-sharing consortium wants to allow patients to control who accesses their medical records and to ensure that access is logged transparently. They are considering blockchain technology. Which design best aligns with Web3 principles while respecting privacy regulations?
Select an answer first
19foundation · easy
What is the primary role of a Decentralized Autonomous Organization (DAO) in Web3?
Select an answer first
20application · medium
A gaming company wants to let players trade in-game items with each other without a central marketplace and without trusting the company to mediate disputes. Which Web3 approach best meets this requirement?
Select an answer first

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