Consensus Models in Financial Systems BFC Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A regulator requires a blockchain-based payment system to maintain a complete audit trail of all consensus decisions, including which validators voted for each block. Which consensus model is most suitable?

   • APublic PoS, where validators are anonymous
   • BPublic PoW, where miners are pseudonymous
   • CPermissioned PBFT, where validator votes are recorded in the block
   • DA centralized ledger, where the operator makes all decisions
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A traditional bank is migrating its internal interbranch ledger to a distributed ledger to improve auditability. The bank requires that only approved branches can validate transactions and that the ledger must be easily auditable by regulators. Which consensus approach best meets these requirements?

   • AOpen Proof of Stake
   • BPublic Proof of Work
   • CPermissioned Practical Byzantine Fault Tolerance (PBFT)
   • DCentralized database with two-phase commit
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A fintech company is required by regulators to demonstrate that its blockchain-based system can recover from a network partition without creating conflicting transaction histories. Which consensus property is most relevant?

   • AConsensus safety
   • BConsensus liveness
   • CTransaction throughput
   • DBlock size
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A stablecoin issuer is choosing between a PoS and a PBFT consensus for its settlement ledger. The issuer's main concern is preventing a malicious validator from censoring transactions. Which property should the issuer evaluate?

   • AThe token price and market capitalization
   • BThe block size and transaction throughput
   • CThe energy consumption of the consensus algorithm
   • DThe number of validators and the quorum required to finalize a block
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A central bank is designing a retail CBDC that must comply with anti-money laundering (AML) regulations. The design team is debating whether to use a permissioned PoS or a permissionless PoW model. What is the primary compliance advantage of the permissioned PoS model?

   • AIt makes the ledger fully immutable, preventing any reversals.
   • BIt allows the central bank to identify and control validators, enabling AML checks on transaction participants.
   • CIt provides higher transaction throughput than PoW.
   • DIt eliminates the need for transaction monitoring.
   Reveal Solution Discussion Select an answer first