Blockchain Applications Across Key Industry Sectors BBLC Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   Which of the following is a common pain point in traditional trade finance that blockchain technology is designed to alleviate?

   • ALack of standardized container sizes
   • BInability to track goods once they leave the port
   • CSlow processing due to manual verification of paper documents
   • DHigh volatility of commodity prices
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A small exporter in Vietnam wants to participate in international trade but is often excluded because its bank requires a paper letter of credit, which takes weeks to issue. The exporter wants to reduce the time to obtain an LC and also reduce the cost of the LC process. Which blockchain-based approach is most appropriate?

   • AUse a cloud-based document management system to share the LC application form.
   • BContinue using paper LCs but send them via express courier to reduce delivery time.
   • CAsk the importer to pay in advance via a cryptocurrency wallet.
   • DUse a blockchain-based trade finance platform that issues digital letters of credit and connects the exporter's bank directly with the importer's bank.
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A logistics company wants to replace paper bills of lading with a digital version that can be transferred from the shipper to the carrier to the consignee, and eventually to customs authorities, without any party losing control of the original. The solution must also provide a clear audit trail of who held the document at each step. Which blockchain-based approach is most appropriate?

   • AScan the paper bill of lading and upload it to a public cloud storage link that is shared with all parties.
   • BIssue a non-fungible token (NFT) representing the bill of lading on a permissioned blockchain, and transfer ownership of the NFT to reflect each change of custody.
   • CStore the bill of lading in a shared database and allow any party with credentials to download it.
   • DEmail the PDF bill of lading to each party in sequence and ask them to reply with confirmation.
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A mid-sized exporter frequently faces delays because its paper bills of lading are physically couriered between banks, and there have been two recent cases of fraudulent duplicate documents. The company wants a shared, tamper-evident record of trade documents that all parties can access in near real time. Which approach best addresses these issues?

   • AUse a private database at the exporter's office and send access credentials to each bank.
   • BStore the bills of lading in a shared cloud folder with read-only permissions for all parties.
   • CDigitize the bills of lading and issue them as verifiable credentials on a permissioned blockchain shared by the exporter, importer, and their banks.
   • DEmail encrypted PDF copies of the bills of lading to all parties and track acknowledgements in a spreadsheet.
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A pharmaceutical manufacturer wants to track each batch of medicine from raw material sourcing to pharmacy delivery to comply with serialization regulations. The company also wants to quickly identify and recall any batch that shows a quality issue. Which blockchain-based approach best supports this requirement?

   • AUse a public blockchain to record all batch data so that anyone can verify the supply chain.
   • BMaintain a centralized database of batch numbers and update it manually at each handoff.
   • CCreate a permissioned blockchain where each batch is assigned a unique digital identity and every transfer of custody is recorded with a timestamp.
   • DUse a simple spreadsheet to track batch movements and share it via email.
   Reveal Solution Discussion Select an answer first