Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

Which statement is true about network vulnerabilities in blockchain technology?

1. A smaller network is easier to attack successfully than a larger one.

2. No one entity processes more than 50% of a public blockchain.

3. A network with many honest nodes is safer from attacks.

4. It takes only one honest node to deter attackers.

The correct answer is: A smaller network is easier to attack successfully than a larger one.

The statement about a smaller network being easier to attack successfully than a larger one is accurate due to several factors inherent in network dynamics and security. In a blockchain, the strength and security of the network are often related to its size and the distribution of its nodes. Smaller networks tend to have fewer participants, which can make it easier for an attacker to gain control or influence over a significant portion of the network. In a smaller network, there may be fewer validators or miners participating in the consensus mechanism, which means that an attacker could potentially accumulate enough resources to control a majority of the network's mining power or validation capability. This concept is often referred to as the "51% attack," where if an entity can control more than half of the network's mining power, they can manipulate transaction confirmations and undermine the integrity of the blockchain. Contrastingly, larger networks benefit from a higher number of nodes, making it significantly more difficult for any single entity or group to gain enough power to execute a successful attack. The decentralized nature and broader dispersion of control act as a natural protective mechanism, thereby elevating the security posture against coordinated attacks. Other statements do not capture the vulnerabilities effectively. For instance, the claim regarding no single entity processing more than 50%