Tokenization Platforms and Protocols BFC Practice Questions (Page 7)

Questions 31–35

1. 31expert · hard

   A tokenization platform provider is being evaluated by a pension fund. The fund requires that the platform's smart contracts have been audited by a reputable third party, that the platform can enforce know-your-customer (KYC) checks on every transfer, and that the platform can operate with a high degree of availability. The fund is also concerned about the platform's long-term viability. Which additional factor is most critical for the fund's evaluation?

   • AThe platform's governance model and the track record of its development team
   • BThe platform's ability to support a wide variety of token standards
   • CThe platform's transaction fees and cost structure
   • DThe platform's user interface and ease of use for investors
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   A startup is tokenizing invoices for a supply-chain finance platform. They need a protocol that allows for the transfer of invoices between different parties while ensuring that the invoice data is not publicly visible. Which protocol feature is most important?

   • AA protocol that makes all transaction data publicly visible for transparency
   • BA protocol that requires a centralized authority to approve every transfer
   • CA protocol that only supports fungible tokens
   • DSupport for private transactions or off-chain data storage with on-chain proof of ownership
   Reveal Solution Discussion Select an answer first
4. 33expert · hard

   A real-estate tokenization platform is evaluating two blockchain protocols: Protocol X offers high throughput but has a centralized governance model; Protocol Y has lower throughput but is fully decentralized and has a strong track record of regulatory compliance. The platform's clients are institutional investors who require auditability and regulatory clarity. Which protocol should the platform choose?

   • AProtocol X, because centralized governance simplifies regulatory compliance
   • BProtocol Y, because institutional clients prioritize regulatory clarity and decentralization over raw throughput
   • CProtocol Y, because lower throughput is always more secure
   • DProtocol X, because high throughput is essential for real-estate tokenization
   Reveal Solution Discussion Select an answer first
5. 34foundation · easy

   Which protocol standard is most commonly used to create and manage fungible tokens on the Ethereum blockchain, such as tokens representing shares in a fund?

   • AERC-721
   • BERC-1155
   • CERC-777
   • DERC-20
   Reveal Solution Discussion Select an answer first
6. 35expert · hard

   A company has issued security tokens on a private blockchain for a real-estate fund. They now want to provide liquidity to their investors by enabling trading on a public decentralized exchange (DEX). The company is concerned about maintaining compliance with transfer restrictions on the public exchange. What is the most effective way to achieve this?

   • AUse a cross-chain bridge that enforces the same compliance rules on the public chain before minting the representation
   • BAllow unrestricted trading on the public DEX and rely on the original private chain for compliance
   • CMigrate the entire token issuance to the public blockchain and abandon the private chain
   • DUse a centralized exchange to list the tokens and manually verify each trade
   Reveal Solution Discussion Select an answer first