Blockchain Ecosystem and Use Cases BFC Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A fintech startup is building a cross-border remittance service for migrant workers sending small amounts to family members in countries with weak banking infrastructure. They want to minimize transaction fees and settlement time while ensuring compliance with anti-money laundering (AML) regulations. Which approach best aligns with these goals?

   • AUse a traditional correspondent banking network with SWIFT messages for settlement.
   • BUse a private blockchain with no external validators and no KYC checks to maximize speed.
   • CUse a permissioned blockchain with a stablecoin and integrate identity verification for all participants.
   • DUse a public permissionless blockchain with a volatile cryptocurrency to avoid any central oversight.
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A fintech startup wants to offer a lending protocol where users can borrow against crypto collateral without a credit check. The founders want the protocol to run autonomously, with loan terms enforced programmatically and no central operator. Which combination of blockchain features is essential to meet this requirement?

   • AA public blockchain with manual settlement and off-chain record keeping
   • BA private blockchain with smart contracts but no external data feeds
   • CA permissioned blockchain with a central authority approving each loan
   • DSmart contracts on a permissionless blockchain with an oracle for price feeds
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A central bank is planning to issue a central bank digital currency (CBDC) on a blockchain. They need to involve multiple stakeholders, including commercial banks, payment processors, and regulators. Which stakeholder role is most critical for the central bank to define clearly?

   • AThe role of miners who validate transactions and earn rewards.
   • BThe role of third-party developers who can create smart contracts on the CBDC network.
   • CThe role of users who can anonymously transact without limits.
   • DThe role of the central bank as the issuer and overseer of the CBDC.
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   Which of the following is a typical service offered by DeFi platforms?

   • ADecentralized lending and borrowing
   • BGovernment-issued digital currency
   • CManual trade settlement
   • DCentralized credit scoring
   Reveal Solution Discussion Select an answer first
6. 25expert · hard

   A global trade finance consortium is building a blockchain platform to connect multiple supply chain networks. They face two challenges: (1) different networks use different consensus mechanisms and data formats, and (2) the platform must handle a high volume of transactions during peak shipping seasons. The consortium wants to avoid a single point of failure and maintain data privacy between competing banks. Which solution best addresses all these constraints?

   • ADeploy a blockchain interoperability protocol with a sidechain for high-throughput transactions and private channels for confidential data
   • BAdopt a proof-of-work consensus for all connected networks
   • CUse a single public blockchain for all transactions to ensure maximum transparency
   • DCreate a centralized database that aggregates all network data
   Reveal Solution Discussion Select an answer first