Tokenization BDC Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   What is the primary purpose of tokenization in the context of blockchain technology?

   • ATo speed up transaction processing on the blockchain
   • BTo convert physical currency into cryptocurrency
   • CTo encrypt all data on the blockchain to ensure privacy
   • DTo create a digital representation of a real-world asset on a blockchain
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2. 2foundation · easy

   Which of the following best describes the role of tokenization in representing real-world assets on a blockchain?

   • AIt creates a one-to-one digital copy of the physical asset on the blockchain
   • BIt enables the asset to be traded and transferred on the blockchain
   • CIt ensures the asset is stored on the blockchain itself
   • DIt replaces the need for legal ownership of the asset
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4. 3expert · hard

   A company is issuing a token that must comply with a regulation requiring that tokens be frozen for 30 days after issuance before they can be transferred. The token is an ERC-20. What is the best way to implement this?

   • AHave the issuer manually approve each transfer after 30 days
   • BBurn all tokens and reissue them after 30 days
   • CUse a global pause function for 30 days
   • DIn the transfer function, check that the current timestamp is after the issuance timestamp plus 30 days
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5. 4application · medium

   A logistics company wants to tokenize shipping containers to track ownership and enable fractional leasing. Each container is unique, but the company also wants to issue tradable shares representing a percentage of a container's leasing revenue. What is the most appropriate tokenization approach?

   • AIssue only ERC-20 tokens for both containers and revenue shares
   • BIssue an ERC-20 token for each container and an ERC-721 token for revenue shares
   • CIssue only ERC-721 tokens for both containers and revenue shares
   • DIssue an ERC-721 token for each container and an ERC-20 token for revenue shares
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6. 5expert · hard

   A fintech company is tokenizing a real-estate fund and plans to offer tokens to both EU and US investors. The EU requires that personal data of EU residents not be transferred outside the EU without safeguards, and the US requires that only accredited investors hold the tokens. The company wants to use a public blockchain. Which approach best addresses both compliance requirements?

   • AUse a public blockchain and store all personal data on-chain in the EU region
   • BUse a private blockchain with a single node in the EU and no whitelist
   • CUse a permissioned blockchain with nodes located in the EU and the US, and implement a whitelist for accredited investors
   • DUse a public blockchain but only allow EU residents to participate
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