Financial Blockchain Business Models BFC Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A blockchain-based freelance platform is trying to grow its two-sided network of freelancers and clients. The platform currently charges freelancers a 10% commission and clients a subscription fee. The platform has reached a critical mass of freelancers but is struggling to attract clients. Which strategy would most effectively leverage network effects to solve this imbalance?

   • AIncrease the commission charged to freelancers to fund marketing for clients
   • BRestrict the number of freelancers to create exclusivity and attract clients
   • COffer clients a free trial period and reduce the subscription fee temporarily to attract more clients
   • DCharge clients a higher subscription fee to increase revenue per client
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A blockchain-based platform for peer-to-peer lending wants to attract both borrowers and lenders. The platform uses a native token that lenders must stake to participate, and borrowers pay a fee in the token. The platform's value increases as more participants join. Which strategy would most effectively strengthen the platform's network effects?

   • ASubsidizing the first group of lenders with higher returns to attract borrowers.
   • BRestricting the platform to accredited investors to reduce regulatory risk.
   • CIncreasing the token staking requirement to ensure lender commitment.
   • DCharging borrowers a higher fee to fund platform development.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A blockchain-based remittance platform connects banks, money transfer operators, and end users. The platform charges a flat fee per transaction to banks and a subscription fee to money transfer operators, while end users pay no direct fee. The platform's value increases as more banks and operators join, making transfers faster and cheaper for users. Which business model characteristic is most directly demonstrated by this setup?

   • AMulti-sided marketplace with network effects
   • BSingle-sided subscription model
   • CToken-based revenue model
   • DCost-plus pricing model
   Reveal Solution Discussion Select an answer first
5. 19expert · hard

   A blockchain-based gaming platform has a dual-token model: a 'game token' that players earn and spend on in-game items, and a 'platform token' that is sold to investors to fund development. The platform token gives holders a share of the platform's advertising revenue. The platform is considering whether to add a 'staking' feature where platform token holders can lock their tokens to earn additional platform tokens. Which regulatory risk does this staking feature introduce?

   • AStaking reduces the token's liquidity, making it less attractive to regulators
   • BStaking makes the token a payment token because it is used to secure the network
   • CStaking eliminates the need for securities registration because it is a technical feature
   • DStaking rewards could be viewed as a return on investment, strengthening the case that the platform token is a security
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A bank is studying a successful blockchain-based trade finance platform that connects exporters, importers, and banks. The platform digitizes letters of credit and automates document checking. The bank wants to adopt a similar model. Which benefit of the platform is most directly attributable to its multi-sided network design?

   • AHigher transaction fees for banks because of increased transparency.
   • BLower cost of capital for exporters because banks compete on the platform.
   • CIncreased trust among parties because the platform is operated by a neutral third party.
   • DReduced document processing time because all parties share a single source of truth.
   Reveal Solution Discussion Select an answer first