Risk Management Strategies and Compliance Mechanisms in Blockchain BBLC Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   Which of the following is a technical control that can mitigate the risk of unauthorized access to a blockchain network?

   • APurchasing a cyber insurance policy
   • BDiversifying the types of assets stored on the blockchain
   • CImplementing multi-factor authentication for network participants
   • DConducting regular employee training on phishing awareness
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A government agency is using a blockchain to record public procurement contracts. Auditors need to verify that no contract was modified after approval. Which blockchain feature, combined with an appropriate governance process, best supports this audit requirement?

   • AThe ability to edit contract records when errors are found, with no version history.
   • BA centralized database that allows administrators to correct records.
   • CA public blockchain where all contracts are visible to citizens.
   • DImmutable audit trail of all contract versions, with a governance process that defines who can propose and approve changes.
   Reveal Solution Discussion Select an answer first
4. 28foundation · easy

   A bank is evaluating a blockchain-based cross-border payment system. Which of the following is an example of a legal risk associated with blockchain adoption?

   • AThe system operates across multiple jurisdictions, and regulators have not yet clarified how existing securities laws apply to the tokenized assets involved.
   • BThe bank's brand is damaged after a publicized data breach on the blockchain network.
   • CThe blockchain network experiences a 51% attack, allowing malicious actors to reverse transactions.
   • DA smart contract executes automatically but contains a coding error that causes funds to be sent to the wrong address.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   Which of the following is an example of an oversight process in a blockchain governance framework?

   • AChoosing a consensus algorithm
   • BSetting the block size
   • CConducting regular audits of the blockchain's compliance with internal policies
   • DWriting smart contract code
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A financial institution is required to report suspicious transactions to regulators within 24 hours. They are designing a permissioned blockchain to record transaction alerts. Which compliance mechanism should be built into the blockchain to ensure the reporting requirement is met?

   • AA manual reporting process where compliance officers review each alert and file reports via email.
   • BA governance committee that meets monthly to decide which transactions to report.
   • CAn immutable audit log that records all transactions but does not generate reports.
   • DA smart contract that automatically generates and submits a regulatory report when a transaction matches predefined suspicious patterns.
   Reveal Solution Discussion Select an answer first