Blockchain Security Standards: Best Practices and Regulations

Question 1

What is a key advantage of implementing blockchain security standards?

Accepted Answer

Enhanced security and increased confidence in blockchain solutions

Answer

Increased cybersecurity risks

Answer

Reduced efficiency in blockchain operations

Answer

Decreased compliance with regulatory obligations

Question 2

Which technique plays a vital role in blockchain security by preventing unauthorized access to data?

Accepted Answer

Cryptography

Answer

Intrusion Detection

Answer

Firewalling

Answer

Access Control

Question 3

Which of the following practices is highly recommended for developing secure blockchain smart contracts?

Accepted Answer

Code Auditing

Answer

Rapid Prototyping

Answer

Crowdsourcing

Answer

Agile Development

Question 4

What is a key distinction between permissioned and permissionless blockchains in terms of security?

Accepted Answer

Access Control

Answer

Data Transparency

Answer

Scalability

Answer

Consensus Mechanism

Question 5

Which regulation holds particular relevance to blockchain security in the financial industry?

Accepted Answer

Bank Secrecy Act

Answer

Health Insurance Portability and Accountability Act

Answer

General Data Protection Regulation

Answer

Sarbanes-Oxley Act

Question 6

What is a primary duty of a blockchain security auditor?

Accepted Answer

Identifying Vulnerabilities

Answer

Implementing Blockchain Solutions

Answer

Developing Smart Contracts

Question 7

The ISO/IEC 27002 standard primarily aims to:

Accepted Answer

Provide guidelines for implementing information security controls

Answer

Establish a framework for blockchain governance

Answer

Define best practices for blockchain development

Question 8

Which inherent feature of blockchain networks significantly contributes to their security?

Accepted Answer

Immutability of transaction records

Answer

Anonymous participation

Answer

Centralized control over the network

Answer

High transaction fees

Question 9

Which type of attack specifically targets vulnerabilities in smart contracts to manipulate blockchain transactions?

Accepted Answer

Reentrancy attack

Answer

Phishing attack

Answer

Brute force attack

Answer

Man-in-the-middle attack

Question 10

When securing private keys in blockchain wallets, which practice is considered the most effective?

Accepted Answer

Store keys in a hardware wallet

Answer

Store keys on public cloud storage

Answer

Keep keys in a text file on your computer

Answer

Share keys with trusted individuals

Question 11

What is the primary purpose of a blockchain security framework?

Accepted Answer

Provide a structured approach to implementing security measures

Answer

Determine the value of blockchain investments

Answer

Establish legal liability for blockchain transactions

Question 12

Which of the following is not considered a primary type of blockchain consensus mechanism?

Accepted Answer

Majority vote

Answer

Delegated Proof of Stake

Answer

Proof of Work

Answer

Proof of Stake

Question 13

Which of the following is NOT a fundamental principle of the NIST Blockchain Security Framework?

Accepted Answer

Scalability

Answer

Availability

Answer

Integrity

Answer

Confidentiality

Question 14

Which of the following is a recommended best practice for securing blockchain keys?

Accepted Answer

Implement a hierarchical key management system with granular access controls.

Answer

Store private keys on a cloud server for ease of access.

Answer

Use the same password across multiple blockchain accounts.

Question 15

In blockchain technology, the consensus mechanism refers to:

Accepted Answer

The process by which transactions are validated and added to the blockchain.

Answer

The data structure used to store blockchain information.

Answer

The protocol used for communication between blockchain nodes.

Question 16

Why is the Payment Card Industry Data Security Standard (PCI DSS) relevant to blockchain security?

Accepted Answer

It provides guidelines for protecting sensitive financial data processed on blockchain networks.

Answer

It is exclusively applicable to blockchain applications in the healthcare industry.

Answer

It defines the minimum security requirements for all blockchain networks.

Question 17

Which security feature is natively incorporated into the Hyperledger Fabric blockchain platform?

Accepted Answer

Role-Based Access Control (RBAC)

Answer

End-to-end encryption

Answer

Proof-of-Work consensus

Answer

Zero-knowledge proofs

Question 18

Which approach is recommended for maintaining the security of blockchain systems?

Accepted Answer

Conduct regular security assessments and penetration tests.

Answer

Rely solely on internal audits performed by the development team.

Answer

Audit blockchain systems only when a security breach is detected.

Question 19

Which standard specifically addresses the security of smart contracts, providing guidance on vulnerability analysis and code review?

Accepted Answer

Smart Contract Security Standard (SCSS)

Answer

ISO 27001

Answer

GDPR

Answer

NIST Cybersecurity Framework

Question 20

In the context of blockchain security audits, which standard serves as a benchmark for evaluating adherence to best practices in cryptography, key management, and consensus mechanisms?

Accepted Answer

NIST SP 800-190

Answer

PCI DSS

Answer

HIPAA

Answer

ISO 9001

Question 21

Regarding blockchain security, which concept emphasizes employing multiple layers of security controls to mitigate risks from various attack vectors?

Accepted Answer

Defense in depth

Answer

Endpoint protection

Answer

Zero trust

Question 22

When selecting a security standard for a blockchain project, which factor holds the highest priority?

Accepted Answer

Alignment with the project's specific requirements and risk profile

Answer

Compliance with industry best practices

Answer

Ease of implementation

Question 23

What is the primary purpose of regulations like KYC (Know Your Customer) and AML (Anti-Money Laundering) in the context of blockchain security?

Accepted Answer

Preventing the use of blockchain technology for illicit activities, including money laundering and financing terrorism

Answer

Ensuring the privacy and confidentiality of user data

Question 24

During a blockchain security assessment, which aspect would typically NOT be included as a focus area?

Accepted Answer

Transaction processing speed

Answer

Vulnerabilities in smart contract code

Answer

Effectiveness of access controls

Question 25

Which type of attack specifically targets the consensus mechanism of a blockchain network?

Accepted Answer

51% attack

Answer

SQL injection

Answer

Phishing

Question 26

Which standard is crucial for organizations handling sensitive personal data on a blockchain, ensuring compliance with data privacy regulations?

Accepted Answer

GDPR (General Data Protection Regulation)

Answer

NIST Cybersecurity Framework

Answer

PCI DSS

Answer

ISO 27001