A multinational corporation is deploying a smart contract that handles employee payroll. The contract stores employee addresses and salary amounts. The company operates in the EU and the US. Which approach best balances compliance with GDPR and the need for on-chain functionality?

Store only hashed employee identifiers on-chain and keep salary data off-chain.

Use a private blockchain to store all data, claiming GDPR compliance.

Avoid using a blockchain and use a traditional database.

Store full employee data on-chain to ensure transparency.

A dApp wants to serve both EU and US users. EU law requires data minimization and erasure, while US regulations require certain financial records to be retained for five years. The dApp stores transaction data on a public blockchain. What is the best design?

Store all data on-chain and rely on the blockchain's immutability to satisfy both laws.

Use a private blockchain to avoid all regulatory requirements.

Store data on-chain but encrypt it so that only authorized parties can read it.

Store only hashes on-chain and keep the underlying data in a permissioned off-chain database with retention policies.

EC-CouncilBlockchain Business Leader Certification

Domain 4Objective 6

Security and Compliance in Smart Contracts BBLC Practice Questions (Page 9)

Part of the Ethereum, Smart Contracts, and dApps domain, which makes up ~14% of our current practice bank.

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Questions 41–43

41expert · hard
A multinational corporation is deploying a smart contract that handles employee payroll. The contract stores employee addresses and salary amounts. The company operates in the EU and the US. Which approach best balances compliance with GDPR and the need for on-chain functionality?
Select an answer first
42application · medium
A team is writing unit tests for a smart contract. They want to ensure that the tests cover all branches of an if-else statement. Which testing metric should they track?
Select an answer first
43expert · hard
A dApp wants to serve both EU and US users. EU law requires data minimization and erasure, while US regulations require certain financial records to be retained for five years. The dApp stores transaction data on a public blockchain. What is the best design?
Select an answer first

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Security and Compliance in Smart Contracts BBLC Practice Questions (Page 9)

Questions 41–43

A multinational corporation is deploying a smart contract that handles employee payroll. The contract stores employee addresses and salary amounts. The company operates in the EU and the US. Which approach best balances compliance with GDPR and the need for on-chain functionality?

A team is writing unit tests for a smart contract. They want to ensure that the tests cover all branches of an if-else statement. Which testing metric should they track?

A dApp wants to serve both EU and US users. EU law requires data minimization and erasure, while US regulations require certain financial records to be retained for five years. The dApp stores transaction data on a public blockchain. What is the best design?

Keep studying — Ethereum, Smart Contracts, and dApps