A consortium of banks wants to create a private blockchain for interbank transfers. They are evaluating whether to use ERC-20 for their internal digital currency. What is the most important consideration?

ERC-20 is not secure enough for financial applications

ERC-20 provides a common interface that ensures interoperability with existing tools and wallets

ERC-20 is only for public tokens and cannot be customized

ERC-20 is a public standard, so it cannot be used on a private blockchain

How do Ethereum standards like ERC-20 contribute to ecosystem interoperability?

They ensure that all tokens have the same value.

They guarantee that all tokens are accepted by all merchants.

They provide a common interface that allows different applications and wallets to interact with tokens consistently.

They automatically connect all Ethereum dApps to each other.

A blockchain consultant is advising a client on token standard adoption. The client wants to ensure their tokens are interoperable across wallets, exchanges, and dApps. Which practices contribute to successful adoption of Ethereum token standards? Select all that apply.

Registering the token with major explorers and listing on exchanges

Implementing the standard's required functions and events exactly as specified

Using a well-known, audited implementation like OpenZeppelin

Deploying on a private blockchain to avoid network congestion

Adding proprietary extensions that break standard compatibility

A blockchain game developer wants to reduce gas costs when players receive multiple rewards (e.g., coins, potions, and rare swords) in a single action. They also want to manage all these assets in one contract. Which approach best achieves this?

Use ERC-721 for everything and treat coins as token IDs

Use ERC-1155 with batch transfer functions

Deploy separate ERC-20 and ERC-721 contracts and call each transfer individually

Use a single ERC-20 contract and encode item types in the token amount

EC-CouncilBlockchain Developer Certification

Domain 5Objective 5

Ethereum Standards and Proposal Processes BDC Practice Questions (Page 4)

Part of the Ethereum and Smart Contract Development domain, which makes up ~11% of our current practice bank.

45questions here

9free pages

8concepts

Questions 16–20

16expert · hard
A consortium of banks wants to create a private blockchain for interbank transfers. They are evaluating whether to use ERC-20 for their internal digital currency. What is the most important consideration?
Select an answer first
17foundation · easy
How do Ethereum standards like ERC-20 contribute to ecosystem interoperability?
Select an answer first
18expert · hard · select all that apply
A blockchain consultant is advising a client on token standard adoption. The client wants to ensure their tokens are interoperable across wallets, exchanges, and dApps. Which practices contribute to successful adoption of Ethereum token standards? Select all that apply.
Select an answer first
19application · medium
A fintech startup is launching a stablecoin and wants maximum compatibility with existing wallets, exchanges, and DeFi protocols. They plan to implement a standard that defines transfer and approval functions. Which standard should they implement?
Select an answer first
20application · medium
A blockchain game developer wants to reduce gas costs when players receive multiple rewards (e.g., coins, potions, and rare swords) in a single action. They also want to manage all these assets in one contract. Which approach best achieves this?
Select an answer first

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