Interoperability in BaaS Platforms BFC Practice Questions (Page 6)

Questions 26–30

1. 26expert · hard

   A bank is using a BaaS platform to interoperate with a public blockchain for remittance payments. The bank's compliance team is concerned about the risk of sanctions violations because the public blockchain is accessible globally. The bank wants to ensure that it does not process transactions involving sanctioned entities. Which approach is most effective while maintaining interoperability?

   • ARely on the public blockchain's inherent transparency to identify sanctioned entities.
   • BImplement a screening mechanism that checks the counterparty's wallet address against a sanctions list before initiating the transaction on the public chain.
   • CRefuse to use public blockchains entirely and only use private permissioned blockchains.
   • DUse a cross-chain bridge that automatically anonymizes all transactions.
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   Which security concern is particularly relevant when using cross-chain bridges in BaaS?

   • AThe risk of the blockchain network running out of storage space
   • BThe risk of funds being locked or stolen due to vulnerabilities in the bridge's smart contracts
   • CThe risk of the bridge being unable to handle high transaction volumes
   • DThe risk of the bridge using a different consensus algorithm than the connected chains
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A financial institution is using a BaaS platform to interoperate with a public blockchain for cross-border payments. The institution's compliance team is concerned about meeting anti-money laundering (AML) regulations that require transaction monitoring and reporting. Which capability should the BaaS platform provide to support compliance in this interoperable environment?

   • AA mechanism to anonymize all transactions on the public chain to protect customer privacy.
   • BA unified audit trail that captures transaction data from both the private and public chains in a normalized format.
   • CA smart contract that automatically executes all cross-chain transactions without human oversight.
   • DA feature that automatically deletes transaction records after a short retention period.
   Reveal Solution Discussion Select an answer first
5. 29expert · hard

   A bank operates a BaaS platform that uses a cross-chain bridge to transfer tokenized assets between a private permissioned chain and a public chain. The bank's security team is concerned about the bridge's smart contract being exploited, which could lead to inconsistent asset balances across chains. The bank also faces regulatory requirements to prove that asset transfers are final and cannot be double-spent. Which approach best addresses both the security and finality concerns?

   • ADisable the bridge and use manual reconciliation.
   • BUse a single notary to approve all transfers.
   • CRely on the public chain's consensus to validate all transfers.
   • DUse a federated bridge with a multi-signature scheme and a dispute-resolution mechanism.
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A bank's BaaS platform needs to integrate with a legacy trade finance system that uses a proprietary file format. The bank wants to avoid changing the legacy system and instead use the BaaS platform to translate data between the blockchain and the legacy system. Which integration pattern should the bank use?

   • AA direct database connection from the blockchain to the legacy system's database.
   • BA manual file transfer process where files are exported from the blockchain and imported into the legacy system.
   • CA custom smart contract that directly reads and writes the legacy file format.
   • DAn enterprise service bus (ESB) or middleware that converts between the blockchain's data format and the legacy file format.
   Reveal Solution Discussion Select an answer first