Blockchain Business Models and ROI BDC Practice Questions (Page 7)

Questions 31–35

1. 31expert · hard

   A consortium of banks has deployed a blockchain for cross-border payments. The consortium wants to measure the success of the deployment. They have identified several KPIs, but they are concerned that some KPIs may be misleading. Which KPI is most likely to be misleading if used as the primary success metric?

   • ATransaction throughput in transactions per second
   • BNumber of participating banks actively using the network
   • CPercentage of transactions that are successfully settled on the first attempt
   • DAverage settlement time reduction compared to the legacy system
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   A startup is creating a decentralized platform for freelance designers to sell digital assets. They want to incentivize early adopters and ensure the platform's long-term sustainability. Which tokenomics approach best aligns with these goals?

   • AUse a stablecoin pegged to the US dollar for all transactions.
   • BCreate a reward token that is distributed to users for uploading and selling assets, with a portion of transaction fees burned.
   • CIssue a fixed supply of utility tokens that are required to access premium features.
   • DSell all tokens in an initial coin offering (ICO) to raise funds.
   Reveal Solution Discussion Select an answer first
4. 33application · medium

   A manufacturing company is considering blockchain for supply chain traceability. They have identified potential benefits: reduced fraud, improved recall efficiency, and enhanced brand reputation. Which cost-benefit analysis approach best captures these benefits?

   • ACompare the blockchain solution to the current system using only implementation costs.
   • BQuantify only the direct cost savings from reduced fraud and recall efficiency.
   • CFocus solely on the technical performance metrics of the blockchain.
   • DInclude both tangible savings and intangible benefits, assigning estimated monetary values where possible.
   Reveal Solution Discussion Select an answer first
5. 34expert · hard

   A company has implemented a blockchain solution that reduced reconciliation time from 10 days to 2 days. The annual cost savings are $1 million, but the project cost $5 million and has ongoing maintenance of $200,000 per year. The company uses a 5-year planning horizon and a 10% discount rate. What is the net present value (NPV) of this project?

   • AApproximately -$1.97 million
   • BApproximately -$1.00 million
   • CApproximately $0.97 million
   • DApproximately $3.03 million
   Reveal Solution Discussion Select an answer first
6. 35foundation · easy

   Which ROI calculation method explicitly accounts for the time value of money by discounting future cash flows?

   • ASimple ROI
   • BBreak-even analysis
   • CPayback period
   • DNet Present Value (NPV)
   Reveal Solution Discussion Select an answer first