Blockchain Business Models and ROI BDC Practice Questions (Page 9)

Questions 41–45

1. 41application · medium

   A company has implemented a blockchain to streamline its audit process. The project cost $2 million, and the annual savings from reduced audit fees are $500,000. The system also provides intangible benefits like improved regulatory compliance. What is the payback period?

   • A5 years
   • B4 years
   • C3 years
   • D2 years
   Reveal Solution Discussion Select an answer first
2. 42application · medium

   A retail company wants to use blockchain to allow customers to verify the authenticity of luxury goods. They are deciding between a public blockchain and a permissioned blockchain. Which value proposition is most critical for this use case?

   • AImmutability, to prevent tampering with product records.
   • BTransparency, so customers can independently verify product provenance.
   • CTokenization, to create a digital certificate for each product.
   • DDecentralization, to ensure no single entity controls the data.
   Reveal Solution Discussion Select an answer first
4. 43application · medium

   A non-profit organization wants to use blockchain to increase donor trust by showing exactly how funds are used. They are considering a public blockchain to ensure transparency. What is the primary value proposition they are leveraging?

   • ADecentralization, to remove any central authority from fund management.
   • BImmutability, to ensure that fund usage records cannot be altered after being recorded.
   • CTokenization, to create a digital token representing each donation.
   • DTransparency, by allowing donors to independently verify fund allocation on a public ledger.
   Reveal Solution Discussion Select an answer first
5. 44foundation · easy

   When calculating ROI for a blockchain project, which of the following is considered a tangible benefit?

   • AImproved stakeholder trust
   • BEnhanced brand image
   • CReduced settlement time
   • DBetter regulatory compliance
   Reveal Solution Discussion Select an answer first
6. 45expert · hard

   A global trade finance consortium is evaluating whether to build a permissioned blockchain for letter-of-credit processing. The consortium has identified that the main benefit is reducing processing time from 10 days to 2 days, which would unlock $5 million in working capital annually. The estimated development cost is $3 million, and annual operating costs are $500,000. However, the consortium is concerned about regulatory uncertainty in cross-border data flows. Which approach best balances the financial analysis with the regulatory risk?

   • AProceed immediately because the blockchain's transparency will automatically ensure regulatory compliance
   • BProceed with the blockchain because the annual benefit of $5 million far exceeds the $500,000 operating cost, ignoring regulatory risk
   • CConduct a cost-benefit analysis that includes the $3 million development cost and $500,000 annual operating cost, and also assess regulatory risks by consulting legal experts and planning for compliance
   • DReject the blockchain because the $3 million development cost is too high compared to the $5 million annual benefit
   Reveal Solution Discussion Select an answer first