Financial Blockchain Business Models BFC Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A blockchain-based platform for decentralized identity wants to attract both users who control their data and businesses that need to verify identities. The platform plans to charge businesses a fee for each verification request and give users a small token reward for sharing their data. Which business model element is most critical for the platform to achieve network effects?

   • ASetting the token reward high enough to cover the users' opportunity cost of sharing data.
   • BReducing the verification fee to zero to encourage businesses to join early.
   • CEnsuring that the number of businesses grows as the number of users grows, creating a virtuous cycle.
   • DMaking the platform open-source to allow third-party developers to build complementary services.
   Reveal Solution Discussion Select an answer first
2. 12expert · hard

   A startup is designing a token for a decentralized storage network. Users pay with the token to store files, and storage providers earn the token for offering disk space. The startup also plans to reward early users with additional tokens for participating in the network's governance. The startup wants to avoid the token being classified as a security. Which design feature is most likely to support a utility classification?

   • AThe token has a fixed supply to create scarcity and potential price appreciation
   • BThe token is issued through a public sale to raise funds for development
   • CThe token is listed on multiple exchanges to increase liquidity
   • DThe token's primary purpose is to access and pay for storage services, not to generate profits for holders
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A global asset management firm is considering a blockchain-based tokenization platform to offer fractional ownership of real estate to retail investors across multiple countries. The firm wants to use a single token standard to represent ownership. Which regulatory consideration is most likely to determine the viability of this business model?

   • AWhether the real estate is located in a country that recognizes blockchain-based ownership.
   • BWhether the blockchain network is permissioned or permissionless.
   • CWhether the tokens are classified as securities in each jurisdiction where investors reside.
   • DWhether the token standard supports smart contract functionality for automated dividends.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A decentralized exchange (DEX) generates revenue by charging a small fee on every trade executed on its platform. The DEX also issues a governance token that allows holders to vote on protocol parameters, such as fee levels and listing criteria. The governance token is not designed to appreciate in value or pay dividends. How should the DEX's revenue model and token be classified?

   • ATransaction-fee revenue; governance token as a utility token
   • BAdvertising revenue; governance token as a payment token
   • CToken-sale revenue; governance token as a security token
   • DSubscription revenue; governance token as a security token
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A consortium of banks is implementing a blockchain-based know-your-customer (KYC) platform where each bank submits customer due-diligence records, and other banks can access them after the customer consents. The consortium wants to reduce redundant KYC costs while maintaining compliance with anti-money laundering (AML) regulations. Which outcome best reflects the platform's value?

   • AAutomatic compliance with all global AML regulations through the blockchain
   • BLower KYC costs through shared records, but banks remain responsible for their own regulatory compliance
   • CReduced need for customer consent because records are shared among banks
   • DComplete elimination of AML compliance burdens for participating banks
   Reveal Solution Discussion Select an answer first