A blockchain consortium has multiple member organizations with different security postures. They want to establish a governance framework that ensures all members follow minimum security standards. Which approach is most effective?

Create a security committee with representatives from each member and enforce a common security policy through smart contracts

Let each member define their own security policies

Use a third-party auditor to assess each member annually

Rely on the blockchain's inherent security features

A blockchain company operates nodes in multiple countries and must comply with data residency regulations that require personal data to stay within a specific country. What is the most appropriate measure?

Anonymize all personal data before storing on-chain

Encrypt all personal data with strong encryption

Deploy all nodes that process personal data within the required country's boundaries

Use a public blockchain to avoid jurisdiction issues

What is the primary goal of a blockchain security audit?

To guarantee that the blockchain is completely free of all vulnerabilities

To identify vulnerabilities and weaknesses in the blockchain system before they can be exploited

To increase the transaction throughput of the blockchain

A financial institution uses a blockchain for cross-border payments. They must comply with both GDPR (right to erasure) and local financial regulations that require transaction records to be retained for 5 years. How can they reconcile these conflicting requirements?

Store all data on-chain and rely on the right to be forgotten being overridden by financial regulations

Encrypt personal data with a key that is destroyed after 5 years

Store only hashed personal data on-chain and retain the raw data in an encrypted off-chain database with a 5-year retention policy

Use a private blockchain with the ability to delete blocks after 5 years

EC-CouncilBlockchain Fintech Certification

Domain 8Objective 3

Mitigating Blockchain Attacks and Security Practices BFC Practice Questions (Page 2)

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

48questions here

10free pages

8concepts

Questions 6–10

6expert · hard
A blockchain consortium has multiple member organizations with different security postures. They want to establish a governance framework that ensures all members follow minimum security standards. Which approach is most effective?
Select an answer first
7application · medium
A blockchain company operates nodes in multiple countries and must comply with data residency regulations that require personal data to stay within a specific country. What is the most appropriate measure?
Select an answer first
8foundation · easy
What is the primary goal of a blockchain security audit?
Select an answer first
9expert · hard
A financial institution uses a blockchain for cross-border payments. They must comply with both GDPR (right to erasure) and local financial regulations that require transaction records to be retained for 5 years. How can they reconcile these conflicting requirements?
Select an answer first
10foundation · easy
Which governance mechanism allows token holders to vote on proposals that affect the blockchain's security policies?
Select an answer first

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