Interoperability in Blockchain Systems BFC Practice Questions (Page 9)

Questions 41–44

1. 41foundation · easy

   What is the primary role of the Interledger Protocol (ILP) in financial systems?

   • ATo ensure that all blockchains use the same consensus algorithm
   • BTo enable secure and interoperable payments across different ledgers and networks
   • CTo provide a single global cryptocurrency
   • DTo replace all existing financial messaging standards
   Reveal Solution Discussion Select an answer first
2. 42foundation · easy

   What is a distinguishing feature of a sidechain in blockchain interoperability?

   • AIt is a central hub that connects multiple blockchains through a common relay
   • BIt is a separate blockchain that runs in parallel to a main chain and can have its own consensus rules
   • CIt is a trusted third party that validates cross-chain transactions
   • DIt is a protocol that enables atomic swaps between two parties
   Reveal Solution Discussion Select an answer first
4. 43expert · hard

   Two banks are attempting an atomic swap of digital assets across their respective blockchain networks using HTLCs. The swap fails because one bank's blockchain has a shorter block time and the other has a longer block time. What is the most likely cause of the failure?

   • AThe timeout values were not coordinated to account for the different block times, causing one side to expire before the other could claim the funds
   • BThe two blockchains use different cryptographic hash functions, making the HTLC incompatible
   • CThe hash lock was not created with the same hash on both chains
   • DThe atomic swap protocol is not supported by one of the blockchains
   Reveal Solution Discussion Select an answer first
5. 44expert · hard

   A multinational corporation is implementing a cross-chain interoperability solution between a public blockchain and a private enterprise blockchain. The solution must comply with data privacy regulations that require personal data to remain within a specific geographic region. The public blockchain is global and cannot guarantee data residency. What is the most appropriate way to address this constraint?

   • AUse a notary scheme that only transfers hashes of data, not the actual personal data, to the public blockchain
   • BUse a sidechain that is hosted in the required region and only connect the public blockchain to that sidechain
   • CUse an off-chain interoperability approach where only non-personal data or proofs are shared with the public blockchain, while personal data remains on the private chain in the required region
   • DUse a relay chain that verifies transactions without transmitting personal data, keeping the actual data on the private chain
   Reveal Solution Discussion Select an answer first