Blockchain Security Training Blockchain Wallet & Exchange Security 1

Question 1

What is the primary security advantage of a hardware wallet over a software wallet?

Accepted Answer

It stores private keys in an offline, tamper-resistant chip

Answer

Hardware wallets keep private keys in a secure, air-gapped chip that never exposes them to internet-connected devices.

Question 2

What is a BIP-39 mnemonic seed phrase used for in blockchain wallet security?

Accepted Answer

Deterministically regenerating all wallet private keys from a single backup

Answer

A BIP-39 seed phrase lets users recover an entire HD wallet's key hierarchy from a single 12- or 24-word backup.

Question 3

Which attack method involves malware silently replacing a copied cryptocurrency address with the attacker's own address?

Accepted Answer

Clipboard hijacking attack

Answer

Clipboard hijacking malware monitors the clipboard and swaps any detected crypto address for the attacker's address before the user pastes it.

Question 4

What is the minimum number of co-signers required to authorize a transaction in a 2-of-3 multisig wallet?

Accepted Answer

2

Answer

A 2-of-3 multisig wallet requires any two of the three designated private keys to sign before a transaction is broadcast.

Question 5

What best practice should users follow when physically backing up a hardware wallet seed phrase?

Accepted Answer

Write it on paper or metal and store it in a physically secure, offline location

Answer

Seed phrases must be stored offline on paper or metal in a secure location, never in any digital or internet-connected medium.

Blockchain Practice Test