Ethereum Ecosystem, EVM, and Role in Financial Markets BFC Practice Questions (Page 8)

Questions 36–40

1. 36application · medium

   A developer is building a dApp that allows users to vote on governance proposals. The dApp uses a smart contract to record votes. To ensure that the voting process is transparent and tamper-proof, what is the most important feature of the smart contract?

   • AThe contract is deployed on a private blockchain
   • BThe contract's code and state are publicly visible on the blockchain
   • CThe contract uses a centralized oracle for vote counting
   • DThe contract is upgradeable without restrictions
   Reveal Solution Discussion Select an answer first
2. 37foundation · easy

   How does Ethereum serve as a settlement layer in financial markets?

   • ABy providing a decentralized ledger that records and finalizes transactions
   • BBy providing a legal framework for financial contracts
   • CBy acting as a central clearinghouse for all trades
   • DBy issuing fiat currencies
   Reveal Solution Discussion Select an answer first
4. 38expert · hard

   A consortium of financial institutions is evaluating Ethereum as a settlement layer for interbank transfers. They require finality of transactions within a few minutes and are concerned about the energy consumption of Proof of Work. They also need to ensure that the network can handle a high throughput of transactions. Which Ethereum deployment and consensus approach best meets these requirements?

   • AUse the public Ethereum mainnet with Proof of Stake, relying on its existing security and decentralization.
   • BUse a sidechain with Proof of Stake that periodically anchors to the Ethereum mainnet.
   • CDeploy a private Ethereum network using Proof of Authority, where a set of trusted validators confirms transactions quickly.
   • DStay with Proof of Work on a private network to maintain maximum security.
   Reveal Solution Discussion Select an answer first
5. 39application · medium

   A startup is building a decentralized insurance platform where claims are automatically paid out when certain conditions are met, such as flight delays. They want to ensure that the conditions are verified by an external data source. What is the most appropriate way to integrate external data into the smart contract?

   • AHave the smart contract directly access the internet via an HTTP request.
   • BUse an oracle service that fetches data from the external source and submits it to the smart contract.
   • CUse a multi-signature wallet to approve each claim manually.
   • DStore the flight data on-chain by having the airline submit it manually.
   Reveal Solution Discussion Select an answer first
6. 40expert · hard

   A financial institution is considering using Ethereum for a high-value settlement system. The institution requires that transactions be irreversible after a short period and that the network be resistant to a 51% attack. Which consensus mechanism best meets these requirements?

   • AProof of Stake with a large validator set and slashing conditions
   • BDelegated Proof of Stake with a small committee
   • CProof of Work with a long block time
   • DProof of Authority with a single validator
   Reveal Solution Discussion Select an answer first