CBCP CBCP Blockchain Governance and Regulation 3

Question 1

Which blockchain governance challenge arises when a small group of large token holders can dominate voting outcomes?

Accepted Answer

Plutocracy

Answer

Sybil attacks

Answer

Eclipse attacks

Answer

Nothing-at-stake problem

Question 2

What is the main role of a blockchain 'improvement proposal' process (e.g., BIP, EIP)?

Accepted Answer

To provide a structured way for the community to propose and discuss protocol changes

Answer

To audit smart contract security

Answer

To register new cryptocurrency tokens

Answer

To set transaction fee limits

Question 3

In the US, the CFTC primarily regulates cryptocurrencies that are classified as:

Accepted Answer

Commodities

Answer

Securities

Answer

Currency

Answer

Utility tokens

Question 4

What is 'regulatory arbitrage' in the context of blockchain businesses?

Accepted Answer

Deliberately operating in jurisdictions with more favorable regulations to minimize compliance burdens

Answer

Using smart contracts to automate tax filings

Answer

Arbitraging price differences between crypto exchanges

Answer

Using DeFi to avoid government taxation

Question 5

Which principle in blockchain governance ensures that changes to the protocol are backward-compatible and older nodes can still function?

Accepted Answer

Soft fork compatibility

Answer

Hard fork compatibility

Answer

Chain finality

Answer

Immutability principle

Question 6

What is the primary compliance concern with 'privacy coins' like Monero or Zcash for US-regulated exchanges?

Accepted Answer

Inability to meet AML/KYC requirements due to transaction obfuscation

Answer

High transaction fees

Answer

Slow block confirmation times

Answer

Incompatibility with ERC-20 standards