Governance, Upgrades, and Forks BDC Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   A blockchain network is planning a hard fork to increase the block size. The upgrade has been coded and tested. What is the next step in the activation process?

   • ALet each node operator decide when to upgrade
   • BImmediately release the new software to all nodes and miners
   • CSet a specific block height or timestamp for activation and communicate it to the community
   • DWait for miners to signal readiness and then activate automatically
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A blockchain project wants to involve the community in decision-making but also wants to avoid the complexity and cost of implementing a formal on-chain voting system. They want a lightweight process that allows for discussion and signaling of preferences. Which governance approach is most suitable?

   • AA decentralized autonomous organization (DAO) with a formal proposal system
   • BOn-chain governance with mandatory voting for all token holders
   • COff-chain governance using forums, social media, and informal polls
   • DA single core developer who makes all decisions
   Reveal Solution Discussion Select an answer first
4. 28foundation · easy

   Which of the following is a potential community implication of a contentious hard fork?

   • AThe community has no way to express disagreement with the upgrade.
   • BThe community automatically reaches consensus because the new rules are backward-compatible.
   • CThe community may split into two separate groups, each supporting a different chain and token.
   • DThe community is forced to adopt the new chain because the old chain becomes invalid.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   What is the typical first step in coordinating a blockchain protocol upgrade?

   • AAsking miners to vote on the upgrade using a secret ballot.
   • BImmediately deploying the new code to all nodes without prior discussion.
   • CPublishing a formal improvement proposal that describes the change and its rationale.
   • DCreating a new cryptocurrency to test the upgrade.
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A blockchain network uses an on-chain governance system where a small group of large token holders can easily pass proposals. A proposal to change the consensus algorithm is passed with 51% of votes from a few whales. What is the most significant governance risk in this scenario?

   • AThe proposal will be rejected by miners
   • BThe network will suffer a 51% attack
   • CThe network will become slower due to voting overhead
   • DCentralization of power in a few token holders, leading to decisions that may not reflect the broader community
   Reveal Solution Discussion Select an answer first