Risk Management Strategies and Compliance Mechanisms in Blockchain BBLC Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   Which of the following is a common technique to balance transparency and privacy in a blockchain that must comply with GDPR?

   • AStoring personal data off-chain and keeping only a hash on-chain
   • BMaking the blockchain private so that only the data subject can see their data
   • CUsing a public blockchain to ensure full transparency
   • DEncrypting personal data with a key held by the data subject
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   Which of the following best illustrates a financial risk in a blockchain-based supply chain financing platform?

   • AA negative news article about the platform causes several large partners to withdraw.
   • BA regulator announces that the platform's token may be classified as a security, leading to potential fines.
   • CA consortium member accidentally uploads incorrect shipment data, causing a cascade of errors in downstream processes.
   • DThe price of the platform's native token drops sharply, reducing the value of collateral held in smart contracts.
   Reveal Solution Discussion Select an answer first
4. 8application · medium

   An energy trading company uses a blockchain to record all trades. Regulators require periodic audits to verify that no trades were altered after execution. Which feature of the blockchain most directly supports this audit requirement?

   • AThe ability to delete historical transactions to reduce storage costs.
   • BThe use of a centralized database that allows administrators to correct errors.
   • CThe network's high transaction throughput, which allows faster trade execution.
   • DImmutability of the transaction ledger, which prevents post-execution alteration of recorded trades.
   Reveal Solution Discussion Select an answer first
5. 9application · medium

   A regulatory body is evaluating a blockchain-based reporting system for financial institutions. They want to reduce the burden of manual reporting and improve accuracy. Which blockchain capability is most relevant?

   • APublic key cryptography to secure report submissions
   • BConsensus mechanisms to validate reports
   • CSmart contracts that automatically generate and submit regulatory reports from on-chain data
   • DDecentralized storage to keep reports off-chain
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A healthcare consortium is deploying a blockchain to share patient consent records across hospitals. The main risks are unauthorized access to sensitive data and a single point of failure in the network. Which combination of mitigation strategies best addresses both risks?

   • AImplement role-based access control (RBAC) and deploy the network across multiple geographically distributed nodes.
   • BAnonymize all patient data and rely on the blockchain's immutability for security.
   • CEncrypt all data at rest and purchase cyber-insurance.
   • DUse a single, highly secure data center and restrict access to a small group of administrators.
   Reveal Solution Discussion Select an answer first