A bank is implementing a cross-chain bridge that uses a notary scheme to facilitate transfers between its internal blockchain and a partner bank's blockchain. The compliance team is concerned that the notary could be compromised, leading to unauthorized asset transfers. Which additional control would best mitigate this risk?

Store the notary's private keys in a hardware security module (HSM).

Use multiple notaries with a multi-signature requirement for each transfer.

Require the notary to be audited by an external firm annually.

Encrypt all communication between the notary and the blockchains.

A logistics company is integrating blockchain technology to track shipments. They have a private blockchain for internal tracking and want to share shipment status with external partners who use a public blockchain. The company also needs to pull data from existing IoT sensors that are not on any blockchain. Which interoperability types are required?

Cross-chain and off-chain interoperability, but not on-chain, since the private and public blockchains are different.

Cross-chain interoperability only, since the IoT data can be manually entered.

Off-chain interoperability only, because the public blockchain can be treated as an external system.

On-chain interoperability for the private and public blockchains, and off-chain interoperability for IoT data.

What is the primary purpose of blockchain interoperability in a financial infrastructure context?

To allow different blockchain networks to exchange data and assets seamlessly

To increase the transaction speed of a single blockchain network

To replace all existing financial systems with a single global blockchain

To ensure that all blockchains use the same consensus algorithm

EC-CouncilBlockchain Fintech Certification

Domain 7Objective 2

Interoperability Challenges in Blockchain Systems BFC Practice Questions (Page 9)

Part of the Blockchain Integration in Financial Infrastructure domain, which makes up ~9% of our current practice bank.

43questions here

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7concepts

Questions 41–43

41application · medium
A bank is implementing a cross-chain bridge that uses a notary scheme to facilitate transfers between its internal blockchain and a partner bank's blockchain. The compliance team is concerned that the notary could be compromised, leading to unauthorized asset transfers. Which additional control would best mitigate this risk?
Select an answer first
42application · medium
A logistics company is integrating blockchain technology to track shipments. They have a private blockchain for internal tracking and want to share shipment status with external partners who use a public blockchain. The company also needs to pull data from existing IoT sensors that are not on any blockchain. Which interoperability types are required?
Select an answer first
43foundation · easy
What is the primary purpose of blockchain interoperability in a financial infrastructure context?
Select an answer first

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Interoperability Challenges in Blockchain Systems BFC Practice Questions (Page 9)

Questions 41–43

What is the primary purpose of blockchain interoperability in a financial infrastructure context?

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