Governance, Upgrades, and Forks BDC Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   How is a soft fork typically activated in a blockchain network?

   • ABy a hard-coded date that all nodes must upgrade by or be left behind.
   • BBy a miner signaling threshold, after which the new rules are enforced by miners producing blocks.
   • CBy a central authority announcing the activation date.
   • DBy a vote of token holders on an on-chain governance platform.
   Reveal Solution Discussion Select an answer first
2. 17expert · hard

   A blockchain network is planning a major upgrade that includes both backward-compatible and non-backward-compatible changes. The team wants to minimize disruption and avoid a chain split. What is the best strategy?

   • ASeparate the changes into two upgrades: first a soft fork for the backward-compatible changes, then a coordinated hard fork for the non-backward-compatible changes
   • BImplement only the backward-compatible changes and postpone the non-backward-compatible changes indefinitely
   • CUse a soft fork for all changes, even the non-backward-compatible ones
   • DCombine all changes into a single hard fork and coordinate a rapid upgrade
   Reveal Solution Discussion Select an answer first
4. 18expert · hard

   A blockchain network is planning a hard fork that will change the consensus algorithm from proof-of-work to proof-of-stake. The upgrade is contentious, and a minority of miners threaten to continue mining the old chain. What is the best way to ensure a smooth transition?

   • AForce all nodes to upgrade by disabling the old software
   • BActivate the hard fork at a specific block height and provide incentives for stakeholders to migrate
   • CCancel the upgrade to avoid a fork
   • DLet miners decide when to switch to the new chain
   Reveal Solution Discussion Select an answer first
5. 19foundation · easy

   Which statement accurately describes a key difference between on-chain and off-chain blockchain governance?

   • AOn-chain governance is only used for parameter changes, while off-chain governance is used for all protocol upgrades.
   • BOn-chain governance uses formal voting mechanisms recorded on the blockchain, while off-chain governance relies on informal discussions and social consensus.
   • COff-chain governance is faster because it does not require any technical implementation after a decision is made.
   • DOn-chain governance is always more decentralized than off-chain governance because it eliminates the need for core developers.
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6. 20expert · hard

   A blockchain network is considering moving from an off-chain governance model to an on-chain governance model. The team is concerned about the risk of a small group of token holders dominating decisions. Which on-chain governance design is most effective at mitigating this risk?

   • AQuadratic voting, where the cost of additional votes increases quadratically
   • BDelegated voting, where token holders delegate their votes to a small number of representatives
   • CA voting system where only miners can vote
   • DOne-token-one-vote, where each token represents one vote
   Reveal Solution Discussion Select an answer first