Blockchain Ecosystem and Use Cases BDC Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   What is a smart contract in the context of blockchain?

   • AA type of cryptocurrency used to pay transaction fees
   • BA self-executing program with the terms of an agreement directly written into code
   • CA consensus algorithm that validates transactions
   • DA legal document that is stored on a blockchain
   Reveal Solution Discussion Select an answer first
2. 27expert · hard

   A company is planning to launch a blockchain-based loyalty rewards program that issues tokens to customers. The tokens can be redeemed for discounts and are also tradeable on secondary markets. The company is unsure whether the tokens are considered securities under current regulations. What is the most prudent course of action?

   • AProceed with the launch and treat the tokens as utility tokens since they are used for discounts
   • BMake the tokens non-transferable to avoid securities regulation
   • CRestrict trading to only accredited investors to avoid securities classification
   • DConsult with legal counsel and potentially seek a regulatory no-action letter or exemption
   Reveal Solution Discussion Select an answer first
4. 28expert · hard

   A fintech startup wants to issue a digital currency pegged to a fiat currency. They plan to hold reserves in a bank account and issue tokens on a blockchain. Which regulatory consideration is most important to address before launch?

   • AUse a permissioned blockchain to avoid regulatory scrutiny.
   • BHold reserves in multiple currencies to reduce volatility.
   • CEnsure the token is classified as a stablecoin and comply with applicable money transmitter or e-money regulations.
   • DMake the token redeemable only through a smart contract to ensure transparency.
   Reveal Solution Discussion Select an answer first
5. 29application · medium

   A logistics company uses a private blockchain for its internal supply chain tracking and wants to share shipment status with a partner who uses a different public blockchain. The two networks use different protocols and data formats. What is the most practical solution to enable interoperability?

   • AAdopt a common interoperability standard and use an oracle or relay to transmit data between the chains
   • BMigrate the entire supply chain tracking to the public blockchain
   • CDeploy a cross-chain bridge that locks assets on one chain and mints equivalent tokens on the other
   • DUse a centralized API that extracts data from the private chain and pushes it to the public chain
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   In healthcare, which blockchain use case is most commonly cited for improving patient data management?

   • AStoring all medical images on a public blockchain
   • BEliminating the need for patient consent
   • CReplacing doctors with automated diagnosis systems
   • DSecure, interoperable sharing of medical records among authorized providers
   Reveal Solution Discussion Select an answer first