Risk Mitigation Flashcards
7 cards from real Blockchain Technology practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Mitigation flashcards as text
Which strategy best mitigates the risk of a hot wallet being drained on an exchange?
Answer: Keeping the majority of funds in cold storage and only operational amounts hot
Cold storage keeps the bulk of funds offline and out of reach of online attackers.
A smart contract uses external calls. Which pattern mitigates reentrancy risk?
Answer: Checks-Effects-Interactions ordering with a reentrancy guard
Updating state before external calls and using a guard prevents reentrant withdrawals.
What is the main risk-mitigation benefit of formal verification for a critical contract?
Answer: It mathematically proves the code meets specified properties
Formal verification proves specified properties hold for all inputs, catching subtle logic flaws.
Which measure best mitigates governance-token attack risk where an attacker borrows tokens to pass a malicious proposal?
Answer: Requiring a voting delay and snapshot before flash-loaned votes can count
Snapshots and voting delays prevent flash-loaned tokens from being used to vote.
How does a phased or canary deployment mitigate risk for a new protocol version?
Answer: It exposes a small portion of users/funds first to limit blast radius
Limiting initial exposure contains damage if the new version has a flaw.
Which control mitigates the risk of a malicious or buggy dependency in a contract's imported libraries?
Answer: Pinning audited library versions and reviewing all dependencies
Pinning and reviewing dependencies prevents supply-chain risks from unvetted code.
What is the primary mitigation against private keys being stolen from a developer's machine?
Answer: Using a hardware security module or hardware wallet for signing
Hardware signing devices keep keys off the host and resist software-based theft.