A company is creating an NFT that represents a license to use a software product. They want to ensure that the license cannot be transferred to another party without the company's approval. Which NFT structure is most suitable?

Use a standard ERC-721 with no transfer restrictions.

Use a custom ERC-721 contract that includes a whitelist of approved addresses and a transfer function that checks the whitelist.

Use a standard ERC-1155 with no transfer restrictions.

Use a standard ERC-20 token to represent the license.

A game studio is planning to mint NFTs for in-game items. They want to minimize the environmental impact of minting. Which approach should they consider?

Use a proof-of-stake blockchain instead of a proof-of-work blockchain.

Mint all NFTs in a single batch to reduce the number of transactions.

Use a centralized database instead of a blockchain.

Mint on a layer-2 solution that still uses proof-of-work.

A charity is planning an NFT fundraiser. They want to ensure that donors receive a tax-deductible receipt, but they also want to provide donors with a unique digital artwork as a thank-you. The charity is concerned about the NFTs being considered taxable income to the donor. Which approach is most appropriate?

Consult a tax professional to determine the fair market value of the NFT and issue receipts accordingly.

Provide the NFT only to donors who explicitly waive the tax deduction.

Treat the NFT as a charitable gift and provide a receipt for the full donation amount.

Issue the NFT as a reward with a nominal value and provide a receipt for the full donation amount.

A brand is launching an NFT collection that includes a physical redemption component. The brand wants to ensure that only the current owner of the NFT can redeem the physical item, but also wants to prevent fraud. Which approach is most secure?

Rely on the marketplace to verify ownership.

Require the NFT owner to sign a message with their private key to prove ownership before redemption.

Require the owner to send the NFT to a burn address to redeem.

Allow anyone with the NFT's metadata to redeem the item.

Which sequence correctly represents the typical lifecycle stages of an NFT?

Trading, minting, creation, burning

Burning, creation, minting, trading

Minting, creation, burning, trading

Creation, minting, trading, burning

EC-CouncilBlockchain Business Leader Certification

Domain 8Objective 2

Structure, Lifecycle, and Legal Considerations of NFTs BBLC Practice Questions (Page 2)

Part of the DeFi, NFTs, and Web3 Business Models domain, which makes up ~6% of our current practice bank.

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Questions 6–10

6application · medium
A company is creating an NFT that represents a license to use a software product. They want to ensure that the license cannot be transferred to another party without the company's approval. Which NFT structure is most suitable?
Select an answer first
7application · medium
A game studio is planning to mint NFTs for in-game items. They want to minimize the environmental impact of minting. Which approach should they consider?
Select an answer first
8expert · hard
A charity is planning an NFT fundraiser. They want to ensure that donors receive a tax-deductible receipt, but they also want to provide donors with a unique digital artwork as a thank-you. The charity is concerned about the NFTs being considered taxable income to the donor. Which approach is most appropriate?
Select an answer first
9expert · hard
A brand is launching an NFT collection that includes a physical redemption component. The brand wants to ensure that only the current owner of the NFT can redeem the physical item, but also wants to prevent fraud. Which approach is most secure?
Select an answer first
10foundation · easy
Which sequence correctly represents the typical lifecycle stages of an NFT?
Select an answer first

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