Risk Management Strategies and Compliance Mechanisms in Blockchain BBLC Practice Questions (Page 9)

Questions 41–45

1. 41application · medium

   A real-estate platform is implementing a smart contract to handle property transfers. The contract must automatically enforce that a buyer's funds are held in escrow until the title transfer is confirmed by a government registry. Which smart contract design best enforces this compliance requirement?

   • AThe contract holds funds in escrow and only releases them when it receives a digital confirmation from the government registry's authorized oracle.
   • BThe contract allows either party to manually release the escrow at any time.
   • CThe contract releases funds immediately upon the buyer's payment, trusting the buyer to confirm the title later.
   • DThe contract automatically releases funds after a fixed 30-day period regardless of title confirmation.
   Reveal Solution Discussion Select an answer first
2. 42application · medium

   A logistics company is using a blockchain to track high-value cargo. They are concerned about the risk of a compromised node providing false location data. Which mitigation strategy is most effective for this specific risk?

   • ARequire multiple independent IoT sensors to confirm a location update before it is accepted by the network.
   • BStore location data off-chain to reduce on-chain data volume.
   • CUse a single trusted sensor provider to ensure data accuracy.
   • DIncrease the block size to allow more transactions per block.
   Reveal Solution Discussion Select an answer first
4. 43application · medium

   A supply chain company is adopting a public blockchain to track product provenance. The risk team has identified the risk of a malicious actor submitting false data at the point of entry. Which mitigation strategy would be most effective?

   • ARely on the blockchain's immutability to prevent false data from being recorded
   • BPurchase cyber insurance to cover financial losses from false data
   • CUse a permissioned blockchain with known participants to eliminate the risk entirely
   • DImplement a decentralized oracle network to validate external data before it is written to the chain
   Reveal Solution Discussion Select an answer first
5. 44expert · hard

   A global supply chain consortium is deploying a blockchain with nodes in multiple countries. They face conflicting data privacy laws: one country requires data to remain within its borders, while another requires open access to data for auditors. The consortium must choose a governance model. Which approach best balances these conflicting requirements?

   • AChoose one country's law to follow and ignore the other
   • BImplement a permissioned blockchain with regional data partitioning and role-based access controls
   • CUse a public blockchain to ensure open access for auditors in all countries
   • DStore all data off-chain and only use the blockchain for hashes
   Reveal Solution Discussion Select an answer first
6. 45expert · hard

   A decentralized finance (DeFi) protocol is facing multiple risks: a potential exploit in its smart contracts, regulatory uncertainty in several jurisdictions, and reliance on a single oracle provider. The team has a limited budget. Which combination of mitigation strategies provides the most balanced risk reduction?

   • AImplement a decentralized oracle network and rely on the community to report bugs.
   • BFocus exclusively on the smart contract audit and defer other risks.
   • CPurchase cyber-insurance to cover all potential losses and continue operations unchanged.
   • DConduct a third-party smart contract audit, implement a decentralized oracle network, and engage legal counsel to assess regulatory exposure.
   Reveal Solution Discussion Select an answer first