R3 Corda Application in Blockchain Finance BFC Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A Corda network is used for securities lending. A transaction transfers a security from Bank A to Bank B. The transaction must be validated by all involved parties and then finalized. What is the correct sequence of steps in a Corda transaction lifecycle?

   • ABroadcast the transaction to all nodes in the network for consensus before any signing
   • BSign the transaction with the notary's key first, then have the involved parties verify the transaction
   • CSend the transaction to the notary first for validation, then collect signatures from all parties
   • DBuild the transaction, sign it with the required keys, collect signatures from all parties, then send to a notary for uniqueness and timestamping
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2. 2expert · hard

   A Corda flow for a syndicated loan must collect signatures from multiple banks. The flow is designed to be idempotent and recoverable. During a test, the flow fails after collecting signatures from two of the five banks. The flow is retried. What is the expected behavior?

   • AThe flow resumes from the last checkpoint and only requests signatures from the remaining banks
   • BThe flow restarts from the beginning, and all banks must sign again
   • CThe flow fails permanently and requires manual intervention to complete
   • DThe flow sends a new transaction to all banks, but the already-signed banks can detect the duplicate and ignore it
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4. 3expert · hard

   A Corda network uses a validating notary. A transaction is being finalized, and the notary receives the full transaction including all inputs and outputs. The notary's validation process includes checking that the transaction's input states have not been previously consumed. However, the notary does NOT re-run the contract's verify() function. What is the primary reason for this design?

   • AThe notary only checks the digital signatures of the transaction, not the business logic
   • BContract verification is performed by the transaction's participants before the transaction is sent to the notary
   • CThe contract code is not available to the notary due to privacy restrictions
   • DThe notary is not a participant in the transaction and therefore cannot be trusted to run contract code
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5. 4foundation · easy

   Which architectural feature of Corda distinguishes it from traditional blockchain platforms like Bitcoin or Ethereum?

   • AConsensus is achieved through proof-of-work mining
   • BThe ledger is shared only between parties involved in a transaction
   • CAll nodes maintain a full copy of the entire ledger
   • DTransactions are broadcast to all participants in the network
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6. 5application · medium

   A bank's existing trade finance system needs to trigger a Corda flow that updates a letter-of-credit. The bank's IT team wants to minimize changes to the existing system. Which integration method is most appropriate?

   • AUse the Corda network map to send a message directly to the other party's node
   • BUse a message queue to send a request to a Corda node, which then runs the flow
   • CHave the existing system directly access the Corda node's database to insert the transaction
   • DReplace the existing trade finance system with a Corda-based application
   Reveal Solution Discussion Select an answer first