Financial Blockchain Business Models BFC Practice Questions (Page 6)

Questions 26–30

1. 26expert · hard

   A supply chain finance platform connects manufacturers, suppliers, and financiers. The platform uses blockchain to record invoices and automate payments through smart contracts. The platform's revenue model charges a fee per invoice financed. The platform is considering whether to add a marketplace where suppliers can auction their invoices to multiple financiers. Which effect would this marketplace have on the platform's business model?

   • AIt would increase competition among financiers, potentially lowering financing rates for suppliers and increasing transaction volume
   • BIt would make the platform a pure subscription model, reducing transaction fees
   • CIt would eliminate the need for smart contracts because auctions are manual
   • DIt would reduce the platform's revenue because financiers would charge lower fees
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A bank is comparing its current correspondent banking model for cross-border payments with a blockchain-based solution. The bank's current model involves multiple intermediaries, each charging a fee and taking time to process. The blockchain solution would use a shared ledger with settlement tokens. Which cost reduction is the most significant for the bank?

   • AEliminating intermediary fees and reducing reconciliation costs.
   • BLowering the cost of customer acquisition through token rewards.
   • CDecreasing the cost of physical branch infrastructure.
   • DReducing the cost of regulatory compliance because blockchain is inherently compliant.
   Reveal Solution Discussion Select an answer first
4. 28foundation · easy

   Why do regulatory frameworks impact the design of blockchain financial business models?

   • ABecause regulations have no effect on blockchain businesses
   • BBecause compliance requirements can affect which features and tokens are permissible
   • CBecause regulations only apply to traditional banks, not blockchain firms
   • DBecause regulations require all blockchain businesses to be fully decentralized
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5. 29foundation · easy

   What is a multi-sided marketplace in the context of blockchain platforms?

   • AA platform that connects two or more distinct user groups, such as buyers and sellers
   • BA platform that operates on multiple different blockchains simultaneously
   • CA platform that serves only one type of user
   • DA platform that has multiple revenue streams from the same user group
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   How does a security token differ from a payment token?

   • ABoth are identical in function and regulation
   • BA security token is used for payments, while a payment token represents ownership
   • CA security token is only used for utility access, while a payment token is for investments
   • DA security token represents an investment contract, while a payment token is used as a medium of exchange
   Reveal Solution Discussion Select an answer first