Technical and Operational Integration Models in Financial Blockchain Systems BFC Practice Questions (Page 8)

Questions 36–40

1. 36foundation · easy

   Which component is essential for a governance framework in a blockchain-based financial system?

   • AA public blockchain to ensure transparency.
   • BA single administrator who controls all aspects of the network.
   • CClear decision-making processes for network upgrades and rule changes.
   • DA consensus algorithm that requires no participant input.
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2. 37application · medium

   A bank is integrating a blockchain-based trade finance platform with its existing systems. The bank must ensure that only authorized parties can view transaction details and that the platform complies with data protection regulations. Which security and compliance integration measure is most effective?

   • AStore all data off-chain and only keep hashes on-chain, without any access controls.
   • BStore all transaction data in plaintext on the blockchain to ensure transparency.
   • CUse a permissioned blockchain with role-based access controls and encrypt sensitive data before storing it on-chain.
   • DRely solely on the blockchain's inherent immutability to ensure security.
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4. 38application · medium

   A financial institution wants to integrate blockchain with its existing customer-facing mobile app. The app currently uses a centralized database. The institution wants to add a feature where customers can view their transaction history on the blockchain, but the app should continue to use the centralized database for customer profiles. Which integration model best fits this requirement?

   • AUse the blockchain only as a backup for the centralized database, with no real-time integration.
   • BReplace the mobile app with a decentralized application (dApp) that interacts directly with the blockchain.
   • CMigrate all customer profiles to the blockchain and retire the centralized database.
   • DUse a hybrid model where the blockchain stores transaction records and the centralized database stores customer profiles, with middleware to link them.
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5. 39application · medium

   A financial institution is integrating its private blockchain with a public blockchain network to enable cross-chain asset transfers. The institution needs a standardized way to ensure that transactions are valid on both networks without relying on a centralized intermediary. Which interoperability approach is most aligned with this requirement?

   • AUse a centralized exchange to manually move assets between the two networks.
   • BImplement a cross-chain protocol that uses atomic swaps or a decentralized bridge with validators.
   • CUse a single smart contract deployed on both networks that directly reads each other's state.
   • DMaintain a separate ledger on each network and periodically reconcile them through batch exports.
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6. 40foundation · easy

   In the context of financial blockchain integration, which statement best describes the difference between a technical integration model and an operational integration model?

   • ATechnical models are used during the design phase, while operational models are used only after the system is decommissioned.
   • BTechnical models define how blockchain connects to existing systems, while operational models define how business processes and workflows are adapted.
   • CTechnical models are concerned with regulatory compliance, while operational models are concerned with network latency.
   • DTechnical models are only used for public blockchains, while operational models are only used for private blockchains.
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