Most Recent Eccouncil 312-82 Exam Questions & Answers

A hard fork occurs when there is a fundamental change in a blockchain's protocol, resulting in the creation of a new chain that is incompatible with the previous one. After a hard fork, nodes must upgrade to the new version of the blockchain's software to continue participating in the network. A hard fork can be used to implement new features, fix security issues, or change core aspects of the blockchain.

Key Details:

Differences from Soft Forks: Unlike a soft fork, which is backward-compatible and allows nodes on the previous version to still participate, a hard fork splits the blockchain into two distinct paths, with the upgraded path requiring new software.

Examples: Notable hard forks include Bitcoin Cash from Bitcoin and Ethereum Classic from Ethereum. These forks occurred due to disagreements within the community on how to handle certain protocol changes, leading to the creation of separate blockchains.

Upgrade Requirements: Participants on the blockchain who wish to continue on the new chain after a hard fork must update their software. Those who do not upgrade remain on the original chain, which continues as a separate, incompatible blockchain.

Thus, the correct answer is Hard fork (A), as it directly refers to a blockchain split that requires client upgrades for participation.

FinCEN requires money transmitters and companies involved in virtual currency (CVC) transmission to report suspicious transactions as part of their anti-money laundering (AML) responsibilities. This is in addition to maintaining an effective AML program and registering as a money service business (MSB).

Key Details:

AML Program: The program must be reasonably designed to detect and prevent the use of financial services for money laundering or terrorist financing.

Reporting Suspicious Activity: FinCEN mandates that companies must file Suspicious Activity Reports (SARs) for any transactions that appear to be potentially suspicious or indicative of illegal activities.

Regulatory Compliance: This requirement ensures that businesses adhere to federal regulations, contributing to a secure financial system by monitoring and reporting illicit activity.

Therefore, A. Report suspicious transactions is the correct answer, as this is a key requirement for companies under FinCEN's regulations regarding money transmission and virtual currencies.

Tree Chains modify the standard blockchain structure from a linear sequence to a tree-like structure, where blocks can have multiple branches instead of forming a single sequential chain. This structure can improve scalability and enable parallel processing, as multiple chains can be validated simultaneously.

Key Details:

Tree Structure: In tree chains, blocks can have multiple child blocks, which allows transactions to be processed across several branches concurrently. This reduces bottlenecks associated with linear block validation and enhances throughput.

Benefits Over Linear Chains: Traditional blockchain models process blocks in a strict sequence. Tree chains allow for more flexibility and higher transaction throughput, as multiple blocks can be validated simultaneously across different branches.

Use Cases: This structure is advantageous for complex applications that require parallel transaction processing, such as large-scale blockchain networks or systems needing high transaction speeds.

Thus, D. Tree chains is the correct answer, as it refers to the blockchain model that diverges from a linear structure.

Smart Contracts are self-executing computer programs that automatically enforce, verify, and facilitate the terms of a contract when certain conditions are met. These programs run on blockchain networks and eliminate the need for intermediaries by automating transactions based on predefined rules coded into the contract.

Key Details:

Automation and Trust: Smart contracts are crucial in blockchain technology because they enable trustless transactions, meaning parties can transact directly without relying on intermediaries. The code controls the execution, and transactions are transparent and irreversible.

Use Cases: Smart contracts are foundational to decentralized finance (DeFi) applications, supply chain management, digital identity, and more. They facilitate various operations such as lending, borrowing, insurance, and automated asset transfers.

Example in Ethereum: Ethereum popularized smart contracts by providing a platform with Turing-complete scripting capabilities. This allowed developers to create sophisticated decentralized applications that execute on the blockchain.

In conclusion, D. Smart contracts is the correct answer as it refers to the technology that automates transactions and eliminates the need for intermediaries.

The UTXO (Unspent Transaction Output) model establishes a chain of ownership by using digital signatures. In this model, each transaction consists of inputs (from previous UTXOs) and outputs (new UTXOs), and ownership is transferred by the current owner signing the transaction. This digital signature is then verified by the recipient, ensuring a secure and traceable chain of ownership.

Key Details:

Functionality of UTXO: UTXO is a fundamental part of Bitcoin's transaction model. When a transaction occurs, it consumes previous outputs as inputs, generating new UTXOs. Each UTXO can only be spent once, and ownership is verified through cryptographic signatures.

Chain of Ownership: The UTXO model inherently creates a clear and verifiable chain of ownership, as each output is signed by the current owner and used as input for future transactions, maintaining a continuous and transparent record of asset transfers.

Security through Digital Signatures: UTXO-based transactions rely on digital signatures to authenticate and authorize asset transfers, ensuring that only the rightful owner can initiate a transaction.

Thus, D. UTXO is the correct answer, as it accurately describes the model where ownership is established through a chain of digital signatures.