CCE Security & Risk Management 3

Question 1

What is an 'eclipse attack' in the context of blockchain networks?

Accepted Answer

Flooding a node with fake peers to isolate it from the honest network

Answer

In an eclipse attack, the attacker surrounds a target node with malicious peers, cutting it off from legitimate network information.

Question 2

Which cryptographic scheme is considered most vulnerable to future quantum computing attacks?

Accepted Answer

Elliptic Curve Digital Signature Algorithm (ECDSA)

Answer

Shor's algorithm running on a sufficiently powerful quantum computer could break ECDSA by solving the discrete logarithm problem, exposing private keys.

Question 3

What does the term 'cold storage' mean in cryptocurrency security?

Accepted Answer

Keeping private keys on devices never connected to the internet

Answer

Cold storage refers to keeping private keys completely offline (hardware wallets, paper wallets) to protect against remote hacking.

Question 4

A reentrancy attack exploits which vulnerability in smart contracts?

Accepted Answer

A function that calls an external contract before updating its own state

Answer

Reentrancy attacks (as in the 2016 DAO hack) exploit contracts that send ETH to external addresses before updating internal balance state, allowing repeated recursive withdrawals.

Question 5

What is the primary goal of a Know Your Customer (KYC) process at cryptocurrency exchanges?

Accepted Answer

Verify user identity to prevent money laundering and fraud

Answer

KYC verifies user identities to comply with AML regulations and prevent illicit use of the platform.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Security & Risk Management 3