Technical and Operational Integration Models in Financial Blockchain Systems BFC Practice Questions (Page 9)

Questions 41–45

1. 41application · medium

   A consortium of banks is building a shared blockchain platform for interbank payments. Each bank uses a different internal messaging format, and the consortium wants to ensure seamless communication between the banks' systems and the blockchain. Which interoperability standard is most appropriate to adopt?

   • AA custom API that only works with the consortium's blockchain.
   • BA proprietary message format developed by one of the banks.
   • CISO 20022 as the common message standard for payment transactions.
   • DThe bank's internal database schema as the integration interface.
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2. 42expert · hard

   A national payment system is integrating a permissioned blockchain for real-time gross settlement. The system must handle 50,000 transactions per second during peak hours, but the blockchain's consensus mechanism only supports 5,000 transactions per second. The central bank requires that every transaction be individually recorded on-chain for audit, and that settlement finality be achieved within seconds. Which solution best satisfies all constraints?

   • AUse a sharded blockchain architecture where transactions are partitioned across multiple shards, each processing a subset of transactions in parallel.
   • BUse a Layer-2 solution that processes transactions off-chain and only settles net positions on-chain.
   • CIncrease the number of nodes in the consensus mechanism to improve throughput.
   • DBatch multiple transactions into a single on-chain transaction to reduce the number of records.
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4. 43application · medium

   A stock exchange is integrating a blockchain-based clearing and settlement system. The exchange expects peak loads of 10,000 transactions per second during market hours. The blockchain network has a maximum throughput of 2,000 transactions per second. Which performance integration strategy should the exchange adopt?

   • AImplement a queueing layer that buffers transactions during peak loads and processes them in batches on the blockchain.
   • BIncrease the number of blockchain nodes to improve throughput.
   • CSwitch to a different blockchain platform that claims unlimited scalability.
   • DProcess all transactions off-chain and only record a summary on the blockchain.
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5. 44expert · hard

   A large insurance company is integrating blockchain for policy management. The company has a legacy system that processes 1 million policies per day. The blockchain can only handle 100,000 transactions per day. The company wants to migrate without disrupting daily operations and without losing any policy data. Which phased integration strategy is most appropriate?

   • ARun the blockchain in parallel with the legacy system for a limited period, processing a subset of new policies on the blockchain while the legacy system handles the rest, then gradually increase the blockchain's share.
   • BDecommission the legacy system and use a queue to buffer policies until the blockchain can process them.
   • CMigrate all policy data to the blockchain over a weekend and switch completely.
   • DUse the blockchain only for new policies and stop using the legacy system for new policies immediately.
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6. 45foundation · easy

   In a blockchain integration, what is the function of a smart contract when invoked by an external financial application?

   • AIt stores data off-chain in a traditional database for faster retrieval.
   • BIt provides a graphical interface for users to view transaction history.
   • CIt encrypts all data on the blockchain to ensure privacy.
   • DIt executes predefined business logic on the blockchain and updates the ledger state.
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