R3 Corda Application in Blockchain Finance BFC Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   What is the role of a contract in Corda?

   • ATo define the rules that govern how states can be created and consumed
   • BTo store the current state of a financial agreement
   • CTo manage the network's consensus protocol
   • DTo provide a user interface for interacting with the ledger
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   In Corda, what is a 'state'?

   • AAn immutable fact that represents a financial agreement or obligation
   • BA message sent between nodes to request a transaction
   • CA cryptographic hash of the entire ledger
   • DA piece of code that defines the rules for updating the ledger
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   What is the primary purpose of R3 Corda in the context of blockchain-based financial applications?

   • ATo provide a public, permissionless ledger for cryptocurrency transactions
   • BTo create a decentralized autonomous organization for managing financial assets
   • CTo enable private, peer-to-peer transactions between known financial institutions with shared ledger data
   • DTo replace traditional databases with a globally replicated public ledger
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A Corda network uses a validating notary. A transaction involves a state that is not visible to the notary because the notary is not a participant. How does the validating notary validate the transaction?

   • AIt cannot validate the transaction because it cannot see the state
   • BIt requests the full transaction from the parties and verifies the transaction's signatures and contract logic
   • CIt uses a zero-knowledge proof to validate the transaction without seeing the state
   • DIt trusts the parties' signatures and only checks for double-spending
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A developer is building a Corda flow that requires the involvement of a third-party oracle to provide a currency exchange rate. The oracle is not a participant in the transaction but must sign the transaction to attest to the rate. How should the flow be designed?

   • AHave the oracle send the exchange rate to the notary, and the notary includes it in the transaction
   • BInclude the oracle as a participant in the state so it can sign the transaction
   • CUse an oracle service that signs the transaction after verifying the exchange rate, without being a participant
   • DStore the exchange rate in a shared database that both parties can access
   Reveal Solution Discussion Select an answer first