Smart Contract Risks BFC Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   Which operational challenge is associated with the difficulty of modifying a smart contract after it has been deployed?

   • APerformance limitation
   • BRegulatory compliance
   • COracle dependency
   • DUpgradeability challenge
   Reveal Solution Discussion Select an answer first
2. 7application · medium

   A team is developing a smart contract for a decentralized exchange. They want to minimize the risk of reentrancy attacks. Which combination of practices is most effective?

   • AUse a time lock and increase the gas limit for all functions.
   • BUse a multi-signature wallet to approve all transactions.
   • CUse a reentrancy guard and follow the checks-effects-interactions pattern.
   • DRely on the blockchain's transaction ordering to prevent reentrant calls.
   Reveal Solution Discussion Select an answer first
4. 8expert · hard

   A team is developing a smart contract for a decentralized exchange. They have a limited budget and must choose between a formal verification and a comprehensive bug bounty program. The contract handles large amounts of user funds. Which approach is more appropriate given the constraints?

   • AFormal verification, because it provides mathematical proof of correctness for all possible inputs.
   • BNeither is necessary if the team writes clean code.
   • CBoth are equally effective, so choose based on team preference.
   • DBug bounty program, because it is cheaper and can find real-world exploits.
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   Which risk mitigation practice involves having independent experts review smart contract code to identify vulnerabilities before deployment?

   • ACode audit
   • BFormal verification
   • CPenetration testing
   • DBug bounty program
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A decentralized exchange (DEX) is about to launch a new smart contract that handles user funds. The team wants to minimize the risk of undiscovered vulnerabilities. Which approach is the most comprehensive?

   • AUse a testnet deployment without further review
   • BDeploy the contract and monitor for attacks
   • CConduct multiple independent code audits and a bug bounty program
   • DRely on a single internal code review
   Reveal Solution Discussion Select an answer first