Which type of token is most likely to be classified as a security by regulators?

A token that provides access to a software platform.

A token used as a medium of exchange within a specific ecosystem.

A token that represents an investment in a company and promises a share of profits.

A token that grants voting rights in a decentralized protocol.

In the tokenization process, what is the role of a smart contract?

It provides legal validation for the token's compliance.

It stores the physical asset in a secure location.

It encodes the rules for issuance, transfer, and redemption of the token.

It determines the market price of the token.

A logistics company wants to put shipping container ownership records on a blockchain. Each container has a unique serial number, and ownership transfers must be recorded immutably. Which approach best represents these containers as digital assets?

Store container data in a centralized database

Use a governance token for each container

Mint an ERC-721 NFT for each container

Create an ERC-20 token for each container

A company wants to tokenize its inventory of rare wines. Each bottle has a unique serial number and provenance history. They want to enable trading of individual bottles on a secondary market. What is the most appropriate tokenization approach?

Store all bottle data off-chain and only record total inventory on-chain

Mint an ERC-721 token for each bottle, embedding metadata like serial number and provenance

Mint a single ERC-20 token representing the entire inventory

Use ERC-1155 with a fungible token ID for all bottles

EC-CouncilBlockchain Developer Certification

Domain 4Objective 4

Types of Tokens and Digital Assets BDC Practice Questions (Page 1)

Part of the Cryptomining, Tokenization, and Digital Assets domain, which makes up ~10% of our current practice bank.

36questions here

8free pages

6concepts

Questions 1–5

1foundation · easy
Which type of token is most likely to be classified as a security by regulators?
Select an answer first
2application · medium
A startup is planning an initial coin offering (ICO) for a token that will be used to access a decentralized storage network. The token will not pay dividends or profits. The team wants to minimize regulatory risk. Which classification is most appropriate for this token?
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3foundation · easy
In the tokenization process, what is the role of a smart contract?
Select an answer first
4application · medium
A logistics company wants to put shipping container ownership records on a blockchain. Each container has a unique serial number, and ownership transfers must be recorded immutably. Which approach best represents these containers as digital assets?
Select an answer first
5application · medium
A company wants to tokenize its inventory of rare wines. Each bottle has a unique serial number and provenance history. They want to enable trading of individual bottles on a secondary market. What is the most appropriate tokenization approach?
Select an answer first

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