Interoperability in Blockchain Systems BFC Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A fintech company is building a cross-border payment system that needs to interoperate with multiple banks that use different messaging formats. The company wants to adopt a single standard to simplify integration. Which standard should they choose?

   • AISO 20022 for financial messaging.
   • BInterledger Protocol (ILP) for routing payments.
   • CA sidechain protocol for asset transfer.
   • DA custom API specification.
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A financial regulator is evaluating a proposal from a bank to use a private blockchain for internal record-keeping. The bank also wants to share selected transaction data with external auditors who use a different blockchain platform. The regulator asks how the bank can ensure that the shared data is consistent and verifiable across both systems. What is the primary benefit of blockchain interoperability in this context?

   • AIt eliminates the need for the bank to maintain its own blockchain because data can be stored on the auditor's chain
   • BIt enables the external auditors to verify the integrity of the bank's data without needing to trust the bank's blockchain directly
   • CIt allows the two blockchains to merge into a single unified ledger
   • DIt guarantees that the external auditors will adopt the same consensus algorithm as the bank
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A financial institution is participating in a cross-border payment network that uses multiple blockchain platforms. The institution needs to ensure that payment messages are formatted consistently across all platforms to reduce errors and reconciliation costs. Which standard should the institution adopt?

   • ASidechain protocol
   • BISO 20022
   • CAtomic swap protocol
   • DInterledger Protocol (ILP)
   Reveal Solution Discussion Select an answer first
5. 19expert · hard

   A cross-chain bridge uses a notary scheme with a single notary to transfer assets between two blockchains. The notary is compromised, and an attacker submits a fraudulent attestation to mint tokens on the destination chain. What is the most effective way to prevent this type of attack in the future?

   • AUse a faster consensus algorithm on the destination chain to confirm the minting transaction before the attacker can act
   • BRequire the notary to post a bond that is forfeited if fraud is detected
   • CReplace the single notary with a multi-signature scheme requiring approval from multiple independent validators
   • DIncrease the block size on both blockchains to reduce the chance of the attacker's transaction being included
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A regulatory body is reviewing a bank's proposal to use blockchain for cross-border payments. The bank plans to connect its blockchain to other banks' systems using the Interledger Protocol (ILP). The regulator asks how ILP ensures that payments are routed correctly across different ledgers. What is the key feature of ILP that addresses this?

   • AIt requires all participating ledgers to use the same consensus algorithm
   • BIt uses a single global ledger to settle all payments
   • CIt uses smart contracts to automatically execute payments on all ledgers
   • DIt relies on connectors that route payments using a common packet format and a quoting mechanism
   Reveal Solution Discussion Select an answer first