CBCP CBCP Blockchain Governance and Regulation 1

Question 1

Which type of blockchain governance model relies on token holders voting directly on protocol changes?

Accepted Answer

On-chain governance

Answer

On-chain governance embeds the voting and decision-making process directly into the blockchain protocol, allowing token holders to vote on proposed changes.

Question 2

What is a DAO (Decentralized Autonomous Organization) primarily governed by?

Accepted Answer

Smart contracts and token-based voting

Answer

A DAO is governed by smart contracts and token-based voting, allowing stakeholders to propose and vote on decisions without centralized control.

Question 3

In blockchain governance, what is a 'hard fork' typically used to address?

Accepted Answer

Major protocol upgrades or fundamental rule changes

Answer

A hard fork implements major protocol upgrades or fundamental rule changes that are not backward-compatible, requiring all nodes to upgrade.

Question 4

Which US regulatory body has primary jurisdiction over cryptocurrency exchanges operating as securities platforms?

Accepted Answer

SEC

Answer

The Securities and Exchange Commission (SEC) has primary jurisdiction over cryptocurrency exchanges that trade digital assets classified as securities.

Question 5

What is the primary purpose of AML (Anti-Money Laundering) requirements for blockchain businesses in the US?

Accepted Answer

To prevent illegal funds from being disguised as legitimate assets

Answer

AML requirements are designed to prevent criminals from disguising illegally obtained funds as legitimate assets by monitoring and reporting suspicious transactions.

CBCP - Certified Blockchain Professional Practice Test

CBCP - Certified Blockchain Professional Practice Test

CBCP CBCP Blockchain Governance and Regulation 1