Risk Mitigation Flashcards
7 cards from real Blockchain Technology practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Mitigation flashcards as text
Which approach best mitigates the risk of a 51% attack on a small proof-of-work chain?
Answer: Increasing required confirmations for large transactions
More confirmations make a successful chain reorganization far harder and costlier.
What does enforcing least-privilege access on contract roles primarily mitigate?
Answer: The damage a single compromised role can cause
Least privilege limits each role's power so one compromise has limited reach.
Which mitigation reduces the risk of phishing leading to wallet draining via malicious approvals?
Answer: Regularly reviewing and revoking unused token approvals
Revoking stale approvals removes standing permissions attackers could exploit.
How does requiring testnet validation before mainnet deployment mitigate risk?
Answer: It surfaces bugs in a low-stakes environment before real funds are at risk
Testnet trials catch failures without risking real assets.
Which control mitigates the risk that a flash loan is used to manipulate a protocol within a single transaction?
Answer: Designing logic so it cannot be exploited by atomic, single-block price swings
Flash-loan-resistant design avoids relying on prices that can be moved within one transaction.
What risk does maintaining an insurance fund or treasury reserve primarily mitigate?
Answer: The financial impact on users if an exploit or shortfall occurs
A reserve fund can cover user losses, softening the financial blow of an incident.
Which practice best mitigates configuration risk when deploying contracts across multiple environments?
Answer: Using separate keys and reviewed, version-controlled deployment scripts per environment
Environment isolation and reviewed scripts prevent misconfiguration and key-reuse errors.