CBCP Certified Blockchain Professional (CBCP) MCQ 5

Question 1

What is the key difference between a 'custodial' and 'non-custodial' cryptocurrency wallet?

Accepted Answer

Custodial wallets hold private keys on behalf of users; non-custodial wallets give users full key control

Answer

In custodial wallets (e.g., exchange wallets), a third party controls private keys; non-custodial wallets ensure users retain sole control of their keys and therefore their funds.

Question 2

In Hyperledger Fabric's endorsement policy, what determines which peers must sign a transaction before it is considered valid?

Accepted Answer

The chaincode-specific endorsement policy defining required organizational signatures

Answer

Hyperledger Fabric endorsement policies are defined per chaincode and specify which organizations' peers must simulate and sign a transaction proposal for it to be valid.

Question 3

Which cryptographic algorithm does Bitcoin use for generating public-private key pairs?

Accepted Answer

Elliptic Curve Digital Signature Algorithm (ECDSA) on secp256k1

Answer

Bitcoin uses ECDSA on the secp256k1 elliptic curve to generate key pairs, enabling compact signatures and efficient verification suitable for a distributed network.

Question 4

What is the primary purpose of a 'multi-signature' (multisig) wallet configuration such as 2-of-3?

Accepted Answer

It requires M of N keyholders to authorize a transaction, reducing single-point-of-failure risk

Answer

A 2-of-3 multisig wallet requires any 2 of 3 designated private keys to sign a transaction, providing security redundancy — loss of one key doesn't lock funds, and theft of one key isn't sufficient to steal funds.

Question 5

In the context of Decentralized Autonomous Organizations (DAOs), what is a 'governance attack'?

Accepted Answer

An entity accumulates enough governance tokens to pass malicious proposals

Answer

A governance attack occurs when an adversary acquires a controlling share of governance tokens — sometimes via flash loans — to push through self-serving or malicious proposals before others can react.

CBCP - Certified Blockchain Professional Practice Test

CBCP - Certified Blockchain Professional Practice Test

CBCP Certified Blockchain Professional (CBCP) MCQ 5