Blockchain Ecosystem and Use Cases BFC Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   How does a blockchain-based identity solution enhance security compared to traditional centralized identity systems?

   • AIt stores all personal data in one central database
   • BIt allows anyone to view all personal information
   • CIt gives users control over their personal data and reduces the risk of a single point of failure
   • DIt requires users to share their private keys with service providers
   Reveal Solution Discussion Select an answer first
2. 17expert · hard

   A fintech company is exploring the tokenization of real-world assets like real estate and commodities. They want to ensure liquidity and regulatory compliance. Which approach is most forward-looking?

   • AIssue utility tokens that have no regulatory oversight and trade on unregulated DEXs.
   • BWait for regulatory clarity before any tokenization initiative.
   • CUse a private blockchain with no external trading to avoid regulation.
   • DIssue security tokens that comply with securities regulations and trade on regulated exchanges.
   Reveal Solution Discussion Select an answer first
4. 18expert · hard

   A national digital identity program wants to use blockchain to give citizens control over their identity data while allowing private banks to verify identities for KYC. The program must comply with GDPR, which requires the right to erasure. However, blockchain is immutable. What is the best way to reconcile these conflicting requirements?

   • AEncrypt identity data on-chain and discard the encryption key when erasure is requested
   • BStore all identity data on-chain and rely on the immutability to satisfy regulators
   • CUse a private blockchain and claim that GDPR does not apply
   • DStore identity data off-chain and only keep a hash on-chain, with a mechanism to delete the off-chain data
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A company wants to tokenize its carbon credits to make them tradable on a blockchain. Each credit represents one ton of CO2 reduction and is verified by an independent auditor. Which token type is most appropriate?

   • ANon-fungible tokens, because each credit has a unique serial number.
   • BFungible tokens, because each carbon credit is identical and interchangeable.
   • CA single token representing all carbon credits owned by the company.
   • DA centralized database with no blockchain.
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A financial institution is evaluating blockchain trends to decide where to invest. They want to support a trend that could reduce costs and improve efficiency while also being compatible with existing systems. Which trend should they prioritize?

   • AA public blockchain with no governance structure
   • BA fully anonymous cryptocurrency for internal transactions
   • CA mining operation for proof-of-work cryptocurrencies
   • DEnterprise blockchain interoperability standards that allow different networks to communicate
   Reveal Solution Discussion Select an answer first