Fundamental Concepts and Working Principles of Blockchain Technology BFC Practice Questions (Page 2)

Questions 6–10

1. 6expert · hard

   A blockchain startup is designing a supply-chain tracking system. They want to ensure that once a shipment event is recorded, it cannot be silently changed by any single participant. They are considering a permissioned network with 5 participating companies. Which design decision is most effective in achieving this goal?

   • AStoring only the latest state of the ledger, discarding older blocks
   • BRequiring a supermajority (e.g., 4 of 5) of validators to approve any new block, combined with cryptographic hash chaining
   • CUsing a single trusted third party to validate all transactions
   • DAllowing each company to maintain its own private copy of the ledger without synchronization
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   What security property is primarily provided by the use of cryptographic hashes in blockchain?

   • AData integrity, ensuring that any tampering is detectable
   • BConfidentiality, ensuring that only authorized users can read the data
   • CAvailability, ensuring that the network is always online
   • DNon-repudiation, ensuring that users cannot deny their actions
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   What is the primary function of the 'previous hash' field in a blockchain block?

   • ATo store the transaction data of the current block
   • BTo link the current block to the preceding block, forming a chain
   • CTo verify the digital signatures of all transactions in the block
   • DTo encrypt the block's contents for privacy
   Reveal Solution Discussion Select an answer first
5. 9expert · hard

   A fintech company is deploying a decentralized insurance product on a public blockchain. The smart contract automatically pays claims when an oracle reports a flight delay. The company is concerned about the oracle being a single point of failure and wants to ensure the contract cannot be manipulated by a single data source. Which design should they implement?

   • AUse multiple independent oracles and have the smart contract trigger payment only if a majority of oracles report the same delay.
   • BUse a single oracle that is controlled by the fintech company itself.
   • CUse a random number generator to decide whether to pay, without any external data.
   • DUse a single oracle but require the user to manually confirm the delay before payment.
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A fintech company wants to automate the settlement of bond coupon payments. They plan to deploy a smart contract that holds collateral and automatically distributes coupon payments to bondholders on a predetermined schedule. What is a key advantage of using a smart contract for this process compared to a traditional manual settlement system?

   • AThe smart contract executes automatically when conditions are met, reducing the need for intermediaries and manual reconciliation.
   • BThe smart contract guarantees that the bond's market price will not fluctuate.
   • CThe smart contract can be modified at any time by the issuer to adjust payment terms.
   • DThe smart contract eliminates the need for any legal agreement or regulatory compliance.
   Reveal Solution Discussion Select an answer first