Smart Contracts and dApp Design for Business BBLC Practice Questions (Page 9)

Questions 41–45

1. 41foundation · easy

   Which statement best describes a smart contract on the Ethereum platform?

   • AA database of business rules that is maintained by a central authority and updated manually.
   • BA cryptographic key pair used to sign transactions and prove ownership of digital assets.
   • CA program stored on the blockchain that automatically executes predefined actions when its conditions are met.
   • DA legal agreement stored off-chain that is manually executed by the parties when conditions are met.
   Reveal Solution Discussion Select an answer first
2. 42expert · hard

   A government agency wants to use smart contracts to manage public records, such as property titles. The agency must comply with data privacy regulations that require the ability to correct erroneous records. Which design consideration is most critical?

   • AUsing an immutable smart contract with no ability to modify or delete records.
   • BImplementing a governance mechanism that allows authorized parties to update or invalidate records.
   • CStoring all records off-chain to avoid blockchain immutability issues.
   • DUsing a public blockchain with no access control to ensure transparency.
   Reveal Solution Discussion Select an answer first
4. 43foundation · easy

   Which component of a decentralized application (dApp) is responsible for interacting with the Ethereum blockchain and executing smart contract functions?

   • AIPFS storage node
   • BSmart contract
   • CFrontend web interface
   • DWeb3 provider (e.g., MetaMask)
   Reveal Solution Discussion Select an answer first
5. 44application · medium

   A retail company is building a dApp for loyalty points. Customers should be able to earn and redeem points through a mobile app. The company wants to minimize the impact of blockchain latency on the user experience. Which approach is most effective?

   • ARequire users to wait for multiple confirmations before seeing their points balance.
   • BStore all loyalty data off-chain and only use the blockchain for audits.
   • CPerform all transactions on-chain and wait for confirmation before updating the UI.
   • DUse an optimistic UI that updates immediately and reconciles with the blockchain asynchronously.
   Reveal Solution Discussion Select an answer first
6. 45foundation · easy

   How do smart contracts primarily automate business processes on Ethereum?

   • ABy storing business rules in a centralized database that is updated by all participants.
   • BBy using artificial intelligence to interpret and execute business agreements.
   • CBy requiring a neutral third party to verify and execute each transaction manually.
   • DBy encoding business rules in code that executes automatically when conditions are met, without intermediaries.
   Reveal Solution Discussion Select an answer first