Blockchain Security Training Risk Mitigation 2

Question 1

Which control most directly reduces the risk of a single compromised key draining a treasury wallet?

Accepted Answer

Multi-signature (multisig) wallet requiring multiple approvers

Answer

Increasing the gas limit on transactions

Answer

Using a shorter block confirmation time

Answer

Storing the seed phrase in a password manager

Question 2

A protocol wants to limit losses if an exploit is discovered after deployment. Which mechanism best mitigates this risk?

Accepted Answer

A pausable/circuit-breaker function controlled by a guardian

Answer

Removing all event logging

Answer

Hardcoding admin private keys in the contract

Answer

Disabling reentrancy guards to save gas

Question 3

What is the primary risk-mitigation purpose of a timelock on protocol governance actions?

Accepted Answer

It gives users time to react or exit before a change takes effect

Answer

It permanently prevents any upgrades

Answer

It speeds up malicious proposals

Answer

It removes the need for audits

Question 4

Which practice best mitigates oracle manipulation risk in a DeFi lending protocol?

Accepted Answer

Using a time-weighted average price (TWAP) from multiple sources

Answer

Reading the spot price from a single low-liquidity pool

Answer

Letting users self-report asset prices

Answer

Caching the deployment-time price forever

Question 5

A team holds an admin upgrade key. What mitigation reduces insider and single-point-of-failure risk for that key?

Accepted Answer

Placing the key behind a multisig with a timelock

Answer

Sharing the key over email with the whole team

Answer

Storing the key in the contract's public storage

Answer

Reusing the key across all environments

Question 6

Which approach most effectively mitigates the risk of unknown vulnerabilities reaching production code?

Accepted Answer

Independent third-party security audits plus a bug bounty program

Answer

Skipping testing to ship faster

Answer

Relying only on the developers' self-review

Answer

Deploying directly to mainnet without testnet trials

Question 7

What does setting per-transaction and daily withdrawal limits on a bridge primarily mitigate?

Accepted Answer

The size of losses during an active exploit

Answer

Network latency between chains

Answer

The cost of gas fees

Answer

The number of supported tokens