A digital artist wants to launch an NFT collection that provides ongoing royalties to the artist on every secondary sale. The artist also wants to create artificial scarcity by limiting the total supply. Which combination of features should the artist prioritize in the NFT smart contract?

Store the artwork off-chain and provide no metadata on-chain

Mint an unlimited supply to maximize market reach, and rely on marketplace goodwill for royalties

Embed a royalty function that pays the artist a percentage of each resale, and set a fixed maximum supply

Use a fungible token standard to allow fractional ownership of the artwork

What is a key legal challenge when tokenizing real-world assets?

Ensuring the token is stored on a centralized server

Ensuring the token is mined using proof-of-work

Ensuring the token complies with securities regulations

Ensuring the token has a high market price

An investor is comparing two NFT collections: Collection A has 10,000 items with strong community and utility; Collection B has 100 items with no utility. Both have similar floor prices. What does this suggest?

Collection A has higher liquidity

Collection A is undervalued relative to its utility

Both are equally valued based on scarcity

What is a custody challenge specific to tokenized assets?

Storing physical assets in a vault

Safeguarding private keys that control the tokens

Ensuring the token has a unique color

EC-CouncilBlockchain Business Leader Certification

Domain 6Objective 2

Tokenization of Assets and NFT-Based Business Models BBLC Practice Questions (Page 8)

Part of the Business Use Cases and Trade Finance domain, which makes up ~13% of our current practice bank.

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Questions 36–40

36application · medium
A digital artist wants to launch an NFT collection that provides ongoing royalties to the artist on every secondary sale. The artist also wants to create artificial scarcity by limiting the total supply. Which combination of features should the artist prioritize in the NFT smart contract?
Select an answer first
37foundation · easy
What is a key legal challenge when tokenizing real-world assets?
Select an answer first
38expert · hard
An investor is comparing two NFT collections: Collection A has 10,000 items with strong community and utility; Collection B has 100 items with no utility. Both have similar floor prices. What does this suggest?
Select an answer first
39foundation · easy
What is a custody challenge specific to tokenized assets?
Select an answer first
40application · medium
A mid-sized exporter wants to digitize its accounts receivable to improve cash flow. The CFO proposes issuing a single blockchain token for each invoice, with the token representing the right to receive the invoice payment. The exporter's bank requires that each token be uniquely identifiable and traceable to a specific invoice for audit purposes. Which token standard should the exporter use?
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