Ethereum Ecosystem, EVM, and Role in Financial Markets BFC Practice Questions (Page 7)

Questions 31–35

1. 31expert · hard

   A DeFi protocol is planning to migrate from Proof of Work to Proof of Stake to reduce energy consumption. The protocol's security team is concerned about the risk of a 'nothing at stake' attack. Which mechanism in Proof of Stake directly mitigates this risk?

   • ARequiring validators to lock up a large amount of Ether
   • BIncreasing the block reward to incentivize honest behavior
   • CSlashing conditions that penalize validators who vote on conflicting blocks
   • DUsing a longer block time
   Reveal Solution Discussion Select an answer first
2. 32expert · hard

   A financial institution wants to tokenize a portfolio of illiquid assets, such as private equity, on Ethereum. The token must allow for secondary trading but must also comply with securities regulations that require investor accreditation checks. Which approach best balances compliance and liquidity?

   • AUse a private blockchain with no external access
   • BIssue an ERC-20 token with a transfer restriction that only allows transfers to pre-approved addresses
   • CIssue an ERC-1155 token with no transfer restrictions
   • DIssue an ERC-721 token for each asset, allowing unrestricted transfers
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   What is the purpose of gas in Ethereum transactions?

   • ATo determine the identity of the sender
   • BTo store the transaction on the blockchain permanently
   • CTo encrypt the transaction data
   • DTo measure the computational effort required to execute a transaction
   Reveal Solution Discussion Select an answer first
5. 34application · medium

   A developer is deploying a smart contract to the Ethereum mainnet. They want to ensure that the contract's bytecode is verified on Etherscan so that users can review the source code. What is the primary benefit of verifying the smart contract's source code?

   • AIt is required by the Ethereum network to deploy a contract.
   • BIt reduces the gas cost of deploying the contract.
   • CIt automatically fixes any bugs in the smart contract.
   • DIt allows users to confirm that the deployed bytecode matches the published source code, increasing transparency.
   Reveal Solution Discussion Select an answer first
6. 35application · medium

   A user is sending a transaction to a smart contract that performs a complex computation. The user wants to ensure the transaction does not run out of gas. What should the user do?

   • AIncrease the block gas limit
   • BSet a high gas limit, but ensure the total fee is within their budget
   • CSet a low gas price to reduce cost
   • DUse a different wallet that automatically sets gas
   Reveal Solution Discussion Select an answer first