R3 Corda Application in Blockchain Finance BFC Practice Questions (Page 3)

Questions 11–15

1. 11expert · hard

   A Corda flow is designed to transfer a digital asset from Party A to Party B. The flow collects Party B's signature and then sends the transaction to a notary. However, the transaction fails at the notary stage because the input state was already consumed in a previous transaction. What is the most likely cause?

   • AThe contract's verify() function rejected the transaction because of a business rule violation
   • BThe notary is not part of the network map, so it cannot validate the transaction
   • CParty B's signature was invalid, causing the notary to reject the transaction
   • DThe flow did not check the vault for the latest unconsumed state before building the transaction
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   In a Corda network, two parties are executing a sale of a digital bond. The seller builds a transaction that consumes the bond state and creates a new state with the buyer as the owner. The seller signs the transaction and sends it to the buyer for signature. After the buyer signs, what is the next step to finalize the transaction?

   • AThe contract's verify() function is run again by the notary to check business rules
   • BThe transaction is sent to a notary for uniqueness checking and timestamping
   • CThe transaction is broadcast to all nodes in the network for validation
   • DThe transaction is stored in a central database accessible to all network participants
   Reveal Solution Discussion Select an answer first
4. 13expert · hard

   A Corda state represents a loan agreement between a bank and a borrower. The state includes the loan amount, interest rate, and repayment schedule. The contract enforces that the loan amount cannot be changed after issuance. A new regulatory requirement allows the loan amount to be increased if both parties agree. The developer updates the contract to allow this. What is the most important additional step to ensure the upgrade is successful?

   • AAll nodes that may verify transactions involving this state must be updated with the new contract code
   • BThe notary must be reconfigured to accept the new contract rules
   • CThe existing loan states must be deleted and recreated with the new contract
   • DThe borrower's node must be upgraded before the bank's node
   Reveal Solution Discussion Select an answer first
5. 14expert · hard

   A Corda application manages digital coupons. A coupon state has a field `expiryDate`. The contract's verify() function checks that the transaction does not extend the expiry date. However, a new requirement allows extending the expiry date if both the issuer and the holder sign the transaction. The developer needs to update the contract. What is the most important consideration when updating the contract?

   • AThe new contract must be deployed to all nodes in the network before any transaction can use it
   • BThe notary must be reconfigured to accept the new contract rules
   • CThe existing states must be migrated to a new state type with a different contract
   • DThe flow that creates the transaction must be rewritten to bypass the contract verification
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A consortium of insurance companies is using Corda to manage reinsurance contracts. They need to ensure that only the parties to a contract can see its details, but they also need to prevent the same contract from being transferred to two different reinsurers. Which Corda features address these requirements?

   • APoint-to-point messaging and notary
   • BContracts and flows
   • CVault and network map
   • DShared ledger and consensus
   Reveal Solution Discussion Select an answer first