Blockchain Integration with Emerging Technologies BDC Practice Questions (Page 11)

Questions 51–55

1. 51expert · hard

   A consortium of banks wants to create a shared identity system for customers to use across multiple banks. They need to ensure that customers can control their data, but they also need to comply with know-your-customer (KYC) regulations that require banks to verify identities. Which approach best balances user control and regulatory compliance?

   • AUse a centralized identity database shared by all banks
   • BUse a sidechain for each bank to store customer identities
   • CUse a public blockchain where all identity data is public
   • DUse a permissioned blockchain where customers hold their identity data and grant banks access via smart contracts, with banks performing KYC verification
   Reveal Solution Discussion Select an answer first
2. 52foundation · easy

   What is a primary regulatory challenge in blockchain-based financial services?

   • AAutomatic compliance with all regulations
   • BInability to transfer value across borders
   • CLack of any need for regulation
   • DEnsuring compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations
   Reveal Solution Discussion Select an answer first
4. 53foundation · easy

   How can blockchain enable content monetization for social media users?

   • ABy using a centralized payment processor
   • BThrough direct micro-payments using cryptocurrency
   • CBy requiring users to pay a subscription to post
   • DBy allowing the platform to keep all ad revenue
   Reveal Solution Discussion Select an answer first
5. 54expert · hard

   A decentralized finance (DeFi) protocol on Ethereum wants to allow users to deposit assets from a Bitcoin-based chain without a centralized exchange. They need to ensure that the assets are not double-spent and that the transfer is atomic. Which mechanism is most appropriate?

   • AA simple bridge that locks Bitcoin and mints an equivalent token without verification
   • BA centralized custodian that holds the Bitcoin and issues a token on Ethereum
   • CA cross-chain atomic swap using hash time-locked contracts (HTLCs) between the two chains
   • DA sidechain that runs its own consensus and does not communicate with Ethereum
   Reveal Solution Discussion Select an answer first
6. 55foundation · easy

   How can blockchain support edge computing by enabling secure data exchange at the network edge?

   • ABy requiring all edge devices to connect to a single server
   • BBy eliminating the need for any encryption
   • CBy centralizing all data processing in a single cloud data center
   • DBy providing a decentralized ledger for recording and verifying data exchanges
   Reveal Solution Discussion Select an answer first