Security and Compliance in Smart Contracts BBLC Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   Which legal issue is most directly raised by the immutability of deployed smart contracts?

   • ADifficulty in reading the contract's source code
   • BInability to correct a bug or update terms after deployment
   • CInability to scale the contract to handle more users
   • DLack of a graphical user interface
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A smart contract team is preparing for an external audit. They want to ensure that the audit is effective and covers all critical logic. Which preparation step is most important?

   • ADeploy the contract to mainnet first to test it in production.
   • BProvide the auditors with a clear specification and documentation of the contract's intended behavior.
   • COnly provide the compiled bytecode to the auditors.
   • DObfuscate the code to protect intellectual property from the auditors.
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A global e-commerce company is deploying a smart contract for customer loyalty rewards. The contract processes personal data of users from different countries. Which regulatory consideration is most important to address?

   • AAvoid collecting any personal data to bypass regulations.
   • BApply the data protection laws of the company's home country only.
   • CEnsure the contract complies with the data protection laws of each user's jurisdiction.
   • DStore all personal data on-chain to simplify compliance.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A dApp development team is building a decentralized identity solution that stores user attributes on-chain. They need to comply with the GDPR's data minimization principle. Which approach best aligns with this requirement?

   • AStore only a hash of the user's attributes on-chain and keep the raw data off-chain.
   • BAvoid storing any data on-chain and rely solely on off-chain databases.
   • CEncrypt the attributes and store them on-chain.
   • DStore all user attributes on-chain for transparency.
   Reveal Solution Discussion Select an answer first
6. 15expert · hard

   A dApp startup is building a decentralized lending platform. They need to integrate KYC/AML compliance but are concerned about user privacy and the cost of storing KYC data. Which approach best addresses these competing concerns?

   • AUse a third-party KYC provider that issues a verifiable credential, and store only the credential's hash on-chain.
   • BSkip KYC/AML to reduce costs and protect privacy.
   • CStore KYC data on-chain in an encrypted format.
   • DStore KYC data in a centralized database and do not integrate with the blockchain.
   Reveal Solution Discussion Select an answer first