What is the primary purpose of a blockchain governance framework?

To eliminate the need for cryptographic security

To create a centralized authority that controls all nodes

To establish rules and processes for decision-making, protocol upgrades, and security policies

To increase the mining reward for validators

A global remittance company uses a blockchain network to process cross-border payments. The company must comply with GDPR, which restricts transfers of personal data outside the EU. The blockchain network is public and has nodes in multiple countries. What is the most appropriate compliance measure?

Encrypt all personal data on the public blockchain and argue that encryption makes it non-personal.

Use a private blockchain with nodes located only in the EU and ensure that personal data is processed within the EU.

Store personal data off-chain and only put hashes on the blockchain.

Ignore GDPR because blockchain is decentralized and no single entity is responsible.

Which consensus security mechanism is used to make a 51% attack economically infeasible by requiring validators to lock up funds that can be forfeited if they act maliciously?

Delegated Proof of Authority (DPoA)

Proof of Stake (PoS) with slashing

Proof of Work (PoW) with difficulty adjustment

Which regulatory framework is specifically designed to protect personal data and imposes requirements on how blockchain systems handle user data?

PCI DSS (Payment Card Industry Data Security Standard)

HIPAA (Health Insurance Portability and Accountability Act)

GDPR (General Data Protection Regulation)

EC-CouncilBlockchain Fintech Certification

Domain 8Objective 3

Mitigating Blockchain Attacks and Security Practices BFC Practice Questions (Page 1)

Part of the Governance, Compliance, and Risk Management domain, which makes up ~12% of our current practice bank.

48questions here

10free pages

8concepts

Questions 1–5

1foundation · easy
Which smart contract vulnerability allows an attacker to repeatedly call a function before the previous execution completes, potentially draining funds?
Select an answer first
2foundation · easy
What is the primary purpose of a blockchain governance framework?
Select an answer first
3application · medium
A global remittance company uses a blockchain network to process cross-border payments. The company must comply with GDPR, which restricts transfers of personal data outside the EU. The blockchain network is public and has nodes in multiple countries. What is the most appropriate compliance measure?
Select an answer first
4foundation · easy
Which consensus security mechanism is used to make a 51% attack economically infeasible by requiring validators to lock up funds that can be forfeited if they act maliciously?
Select an answer first
5foundation · easy
Which regulatory framework is specifically designed to protect personal data and imposes requirements on how blockchain systems handle user data?
Select an answer first

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Mitigating Blockchain Attacks and Security Practices BFC Practice Questions (Page 1)

Questions 1–5

Which smart contract vulnerability allows an attacker to repeatedly call a function before the previous execution completes, potentially draining funds?

What is the primary purpose of a blockchain governance framework?

Which consensus security mechanism is used to make a 51% attack economically infeasible by requiring validators to lock up funds that can be forfeited if they act maliciously?

Which regulatory framework is specifically designed to protect personal data and imposes requirements on how blockchain systems handle user data?

Keep studying — Governance, Compliance, and Risk Management