Security and Compliance in Smart Contracts BBLC Practice Questions (Page 2)

Questions 6–10

1. 6expert · hard

   A consortium of banks is deploying a smart contract for cross-border payments. The contract is designed to be immutable, but regulators require the ability to freeze suspicious transactions. Which design approach best reconciles immutability with regulatory compliance?

   • AImplement a regulatory override function that can be triggered by a multi-signature of authorized regulators.
   • BUse a centralized server to approve each transaction before it is executed.
   • CKeep the contract fully immutable and rely on off-chain legal action.
   • DMake the contract upgradeable to allow changes at any time.
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   Which data protection regulation is most likely to apply to a smart contract that processes personal data of EU citizens, regardless of where the contract is deployed?

   • AHealth Insurance Portability and Accountability Act (HIPAA)
   • BCalifornia Consumer Privacy Act (CCPA)
   • CPayment Card Industry Data Security Standard (PCI DSS)
   • DGeneral Data Protection Regulation (GDPR)
   Reveal Solution Discussion Select an answer first
4. 8application · medium

   A company deploys a smart contract that automatically executes payments between parties. A dispute arises because one party claims the contract's logic does not match the agreed terms. Which legal consideration is most important to address in the contract's design?

   • AInclude a dispute resolution mechanism that allows for human intervention.
   • BRely on the blockchain's consensus to resolve disputes.
   • CMake the contract's code the only source of truth without external references.
   • DEnsure the contract is fully immutable to prevent any changes.
   Reveal Solution Discussion Select an answer first
5. 9application · medium

   A dApp is being developed for the European market. The team wants to ensure compliance with GDPR. Which design choice is most aligned with GDPR's data minimization principle?

   • ACollect only the minimum personal data necessary for the service.
   • BCollect data without user consent.
   • CCollect data and store it on-chain indefinitely.
   • DCollect as much data as possible for future use.
   Reveal Solution Discussion Select an answer first
6. 10expert · hard

   A team is auditing a smart contract that has a critical function with complex mathematical logic. They have already run static analysis and unit tests. To gain the highest level of assurance about the function's correctness, which additional step is most appropriate?

   • ARun more unit tests with random inputs.
   • BDeploy the contract on a testnet and monitor its behavior.
   • CPerform formal verification of the critical function.
   • DConduct a manual code review by a senior developer.
   Reveal Solution Discussion Select an answer first