Blockchain Ecosystem and Use Cases BFC Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   What is a smart contract in the context of blockchain?

   • AA self-executing program with the terms of an agreement directly written into code
   • BA legal document that requires manual signing
   • CA type of cryptocurrency used only for payments
   • DA centralized database for storing contracts
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   What is a common solution to address regulatory compliance in blockchain-based FinTech applications?

   • AStoring all data off-chain without any controls
   • BImplementing identity verification and transaction monitoring tools
   • CMaking all transactions fully anonymous
   • DAvoiding all interaction with regulators
   Reveal Solution Discussion Select an answer first
4. 13expert · hard

   A bank wants to tokenize a portfolio of trade receivables to sell to institutional investors. The bank must ensure that the tokens are legally enforceable and that the underlying receivables are not double-sold. The bank also wants to support fractional ownership and secondary trading. Which design is most appropriate?

   • AIssue security tokens on a permissioned blockchain with a legal wrapper and a registry that records ownership transfers
   • BUse a private database to track ownership and only record hashes on a public blockchain
   • CCreate a single non-fungible token (NFT) for the entire portfolio
   • DIssue utility tokens on a public blockchain with no legal documentation
   Reveal Solution Discussion Select an answer first
5. 14expert · hard

   A global payment network is considering using a blockchain to settle cross-border transactions. They need to support high throughput (thousands of transactions per second) and finality in seconds. They also require privacy for transaction details. Which solution is most appropriate?

   • AA centralized database with a blockchain audit trail.
   • BA public blockchain with proof-of-work and on-chain encryption.
   • CA public blockchain with a layer-2 solution like state channels.
   • DA permissioned blockchain with a consensus algorithm like Raft or PBFT and private transactions.
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   Which blockchain use case in FinTech is most directly aimed at reducing the cost and time of cross-border money transfers?

   • ATrade finance
   • BIdentity verification
   • CTokenization of real estate
   • DRemittances
   Reveal Solution Discussion Select an answer first