Tokenization of Assets and NFT-Based Business Models BBLC Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A trade finance company wants to digitize bills of lading to reduce fraud and improve transferability. They need each bill to be unique and traceable. Which token type should they use?

   • APayment tokens
   • BNon-fungible tokens (NFTs)
   • CUtility tokens
   • DFungible tokens
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A supply chain consortium wants to tokenize warehouse receipts for commodities. Each receipt represents a specific quantity of a commodity stored in a specific warehouse. The consortium needs to allow the receipt to be split into smaller quantities for partial sales, while still maintaining a link to the original receipt. Which token type would best support this requirement?

   • AA centralized database record with no tokenization
   • BA semi-fungible token that can be split into fractional units, each representing a portion of the commodity
   • CA purely non-fungible token that cannot be divided
   • DA purely fungible token that represents the commodity but not the specific warehouse
   Reveal Solution Discussion Select an answer first
4. 18expert · hard

   A company has tokenized a real estate property and issued 1,000,000 tokens. The tokens are traded on a secondary market. A security breach results in the theft of a private key that controls a large portion of the tokens. The company wants to mitigate the loss and prevent future incidents. What is the most effective immediate action?

   • AIssue a new set of tokens to all holders and invalidate the old ones
   • BDo nothing because the tokens are on a public blockchain and cannot be recovered
   • CFreeze the compromised tokens by using a smart contract that can pause transfers, and require multi-signature authorization for large transfers
   • DRely on the exchange to reverse the transactions
   Reveal Solution Discussion Select an answer first
5. 19expert · hard

   A financial institution is exploring tokenization of carbon credits. They want to ensure interoperability across different blockchain platforms and regulatory acceptance. What emerging trend should they prioritize?

   • AUsing proprietary blockchain to maintain control
   • BAvoiding tokenization and using traditional databases
   • CFocusing only on NFT-based art
   • DAdopting cross-chain standards and interoperability protocols
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   An NFT marketplace wants to increase the liquidity of a collection of digital collectibles. The collection currently has low trading volume and wide bid-ask spreads. Which strategy would most directly improve liquidity?

   • AEnable fractionalization of the NFTs so that smaller investors can buy a portion
   • BIncrease the listing price of each NFT to signal higher value
   • CRestrict trading to a small group of verified collectors
   • DRemove all metadata to make the NFTs more mysterious
   Reveal Solution Discussion Select an answer first