R3 Corda Application in Blockchain Finance BFC Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A consortium of banks is using Corda for a trade finance platform. They need to integrate with an existing enterprise ERP system that uses a message queue for asynchronous communication. The ERP system must be notified when a letter of credit is issued on Corda. What is the recommended way to achieve this integration?

   • ARequire the ERP system to run its own Corda node and join the network
   • BUse a Corda flow to directly write to the ERP's database
   • CHave the ERP system poll the Corda node's public blockchain explorer
   • DSubscribe to Corda state updates via the node's vault and publish a message to the ERP's message queue
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2. 32foundation · easy

   Which of the following is a real-world financial use case that Corda is well-suited for?

   • AMining new cryptocurrency coins
   • BProviding a platform for social media applications
   • CManaging trade finance documents and letters of credit between banks
   • DRunning a public decentralized exchange for anonymous trading
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4. 33foundation · easy

   What is a 'flow' in Corda?

   • AA sequence of steps that orchestrates a multi-party transaction
   • BA mechanism for achieving consensus among all nodes in the network
   • CA type of state that represents a payment obligation
   • DA tool for deploying smart contracts to the network
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5. 34application · medium

   A trade finance platform on Corda represents a letter of credit as a state. The state includes the issuing bank, the beneficiary, the amount, and the expiry date. The contract attached to the state enforces that the amount cannot be increased after issuance. When a transaction attempts to modify the letter of credit, what does the contract's verify() function primarily do?

   • AIt checks that the transaction is signed by the beneficiary and the issuing bank before the state is updated
   • BIt sends the transaction to the notary to confirm that the letter of credit has not been double-spent
   • CIt records the transaction in the shared ledger visible to all network participants
   • DIt validates that the new state's amount is not greater than the original and that the transaction is internally consistent
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6. 35expert · hard

   A Corda network is designed with a non-validating notary. A transaction is sent to the notary for finalization. The notary only receives the transaction IDs and the input state references, not the full transaction data. What is the primary benefit of this design?

   • AImproved privacy because the notary does not see the transaction contents
   • BSimplified network setup because non-validating notaries do not require a consensus protocol
   • CIncreased security because the notary cannot tamper with transaction data
   • DFaster transaction finality because the notary does not need to verify contracts
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