CBC Security & Regulatory Compliance

Question 1

What is the primary security feature of blockchain technology?

Accepted Answer

Decentralized structure with cryptographic security

Answer

Blockchain's decentralized structure eliminates a single point of failure, making it resistant to hacking and fraud.

Question 2

Which regulatory body oversees cryptocurrency compliance in the United States?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

The SEC regulates securities and investment aspects of cryptocurrency, ensuring compliance with financial laws.

Question 3

How does blockchain technology enhance data privacy?

Accepted Answer

By encrypting transaction data for security

Answer

Blockchain uses cryptographic encryption to secure transaction data, ensuring privacy and protection against tampering.

Question 4

Which compliance measure helps prevent money laundering in cryptocurrency transactions?

Accepted Answer

Implementing Know Your Customer (KYC) procedures

Answer

Know Your Customer (KYC) procedures help verify user identities, preventing illegal activities like money laundering.

Question 5

What is a common security risk in blockchain networks?

Accepted Answer

51% attack allowing control over transaction validation

Answer

51% attacks occur when a single entity gains control of most of a blockchain's mining power, allowing fraudulent transaction validation.

(CBC) Certified Blockchain Consultant Practice Test