Blockchain Applications Across Key Industry Sectors BBLC Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A food retailer wants to trace a batch of organic produce from the farm to the store shelf to verify its organic certification and to enable rapid recall if contamination is found. The retailer also needs to provide this traceability data to regulators during audits. Which blockchain design best supports these requirements?

   • AStore the batch's journey in a spreadsheet and email it to the retailer at the end of the supply chain.
   • BRecord each transfer of the batch on a permissioned blockchain with a unique batch ID, linking each step to a digital certificate of the organic claim.
   • CUse a public blockchain to record every temperature reading from the batch's sensors.
   • DCreate a QR code on the packaging that links to a marketing website describing the farm.
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A mid-sized exporter currently relies on paper-based bills of lading and letters of credit. In the last quarter, two shipments were delayed because documents arrived after the vessel, and one fraudulent letter of credit was presented. The exporter wants to digitize trade documents and reduce fraud risk without requiring all counterparties to adopt a new platform. Which approach best addresses these needs?

   • AEmail encrypted PDF copies of bills of lading and letters of credit to all parties to eliminate paper handling.
   • BImplement a permissioned blockchain shared with banks and logistics providers to issue and transfer digital bills of lading and letters of credit.
   • CUse a public blockchain to store all trade documents so that anyone can verify their authenticity.
   • DAdopt a centralized document management system with role-based access controls.
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A trading company wants to automate the release of payment to a supplier once a shipment is confirmed as delivered. Currently, payment is released after manual verification of delivery documents, which often takes 5–7 days. The company wants to reduce settlement time and manual intervention while ensuring payment is only made when delivery conditions are met. Which solution best achieves this?

   • AInstruct the bank to release payment upon receipt of an email from the logistics provider confirming delivery.
   • BDeploy a smart contract on a permissioned blockchain that automatically triggers payment when IoT sensors and logistics data confirm delivery.
   • CImplement a manual approval workflow in an ERP system with automated reminders to speed up the process.
   • DUse a traditional electronic data interchange (EDI) system to send delivery confirmations and process payments automatically.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A bank wants to automate the execution of a letter of credit so that payment is made to the exporter only when the shipping documents match the terms exactly. The bank also wants to maintain an audit trail for regulatory review. Which solution best meets these requirements?

   • AImplement a smart contract that validates shipping documents against the letter of credit terms and releases payment automatically, with all actions recorded on a blockchain.
   • BUse a manual document checking process with a checklist and record results in a spreadsheet.
   • CUse an email-based approval workflow where bank staff approve payment after reviewing documents.
   • DRely on the exporter's self-certification that documents match the terms.
   Reveal Solution Discussion Select an answer first
6. 15expert · hard

   A multinational corporation wants to reduce the cost and time of cross-border payments to suppliers in emerging markets. The corporation also needs to comply with anti-money laundering (AML) regulations and maintain a clear audit trail. The finance team is considering using a public blockchain with a stablecoin. Which additional measure is most critical to ensure regulatory compliance?

   • AUse a private wallet for each supplier to keep transactions anonymous.
   • BRely on the stablecoin issuer to handle all compliance requirements.
   • CIntegrate identity verification and transaction monitoring tools into the payment process.
   • DUse a public blockchain without any additional controls to ensure transparency.
   Reveal Solution Discussion Select an answer first