Consensus Models in Financial Systems BFC Practice Questions (Page 6)

Questions 26–30

1. 26expert · hard

   A cross-border payment network must choose between PoW and PoS. The network's main concern is finality: regulators require that once a transaction is confirmed, it cannot be reverted. Which approach best meets this requirement?

   • APoS, because it can provide deterministic finality through checkpointing or slashing
   • BPoW, because it provides probabilistic finality that becomes stronger over time
   • CPoS, because it requires no validators
   • DPoW, because it is more energy-efficient
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   What is a key way consensus mechanisms contribute to the integrity of a financial ledger?

   • ABy storing the ledger only on trusted nodes to prevent unauthorized access
   • BBy ensuring that once a block is added, altering it would require redoing the consensus process for all subsequent blocks
   • CBy allowing any participant to modify past transactions if a majority agrees
   • DBy encrypting all transactions with a private key held by a central authority
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A blockchain-based remittance service is experiencing occasional chain reorganizations that cause transactions to be reversed. The service needs to provide merchants with a guarantee that once a payment is confirmed, it will not be reversed. Which consensus model property should they prioritize?

   • AProbabilistic finality
   • BLow latency
   • CImmediate finality
   • DHigh throughput
   Reveal Solution Discussion Select an answer first
5. 29application · medium

   A group of non-bank financial institutions wants to create a shared ledger for trade finance. They need to ensure that all participants agree on the order of transactions, but they do not want to rely on a central authority. What is the primary role of consensus in this scenario?

   • ATo establish a single, agreed-upon order of transactions across all participants
   • BTo encrypt all transaction data
   • CTo store transaction data off-chain
   • DTo provide a user interface for transaction submission
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   Why is consensus considered essential for trust in a distributed financial network?

   • AIt allows each node to maintain its own version of the ledger without coordination
   • BIt guarantees that transactions are irreversible and cannot be disputed
   • CIt ensures that all honest participants agree on the same transaction history
   • DIt eliminates the need for cryptographic security in the network
   Reveal Solution Discussion Select an answer first