Security and Compliance in Smart Contracts BBLC Practice Questions (Page 7)

Questions 31–35

1. 31foundation · easy

   Which principle of secure smart contract development is most directly intended to prevent reentrancy attacks?

   • ADeploying the contract with a proxy pattern
   • BAvoiding the use of modifiers
   • CMinimizing the use of require statements
   • DUsing the checks-effects-interactions pattern
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   A fintech company is developing a dApp that allows users to trade tokenized securities. The platform will be accessible to users in multiple jurisdictions. Which compliance measure is most critical to integrate into the dApp development process?

   • AStore all user data on-chain to ensure transparency.
   • BImplement KYC/AML checks for all users before allowing trading.
   • CUse a single jurisdiction's regulations for all users.
   • DMake the smart contract immutable to avoid legal scrutiny.
   Reveal Solution Discussion Select an answer first
4. 33expert · hard

   A fintech startup is building a lending dApp. They want to automate KYC/AML checks using smart contracts. However, they are concerned about the privacy of user data. Which approach is most compliant and privacy-preserving?

   • AUse a trusted third-party oracle to perform KYC and issue a zero-knowledge proof that the user passed.
   • BHave users submit their KYC data directly to the smart contract.
   • CSkip KYC for now and add it later after launch.
   • DStore KYC documents on IPFS and reference them in the contract.
   Reveal Solution Discussion Select an answer first
5. 34expert · hard

   A smart contract has a clause that automatically executes a penalty if a payment is late. The contract is immutable and the penalty is harsh. A user claims the penalty is unconscionable and wants to challenge it in court. What is the most likely legal outcome?

   • AThe user has no legal recourse because they agreed to the contract.
   • BThe court may refuse to enforce the penalty if it is deemed unconscionable, despite the contract's code.
   • CThe court will always enforce the code because it is immutable.
   • DThe court will require a hard fork to change the contract.
   Reveal Solution Discussion Select an answer first
6. 35application · medium

   A smart contract team is deciding between using a formal verification tool and a manual code review. They have a limited budget and need to ensure the contract's critical financial logic is correct. Which approach is most appropriate?

   • AUse only a static analysis tool and no other testing.
   • BUse formal verification to mathematically prove the contract's behavior for critical functions.
   • CRely solely on manual code review to save costs.
   • DSkip both and deploy after basic unit tests.
   Reveal Solution Discussion Select an answer first