Blockchain Technology Use Cases 5 — Questions and Answers
Question 1: How does blockchain technology improve the accuracy of land title registries in the US?
- It removes the government's role in property rights entirely
- It creates an immutable, time-stamped chain of ownership transfers eliminating title disputes (Correct answer)
- It automatically rezones land based on demand
- It replaces physical surveys with on-chain measurements
Correct answer: It creates an immutable, time-stamped chain of ownership transfers eliminating title disputes
Recording each ownership transfer on an immutable ledger eliminates conflicting paper records and reduces title insurance costs.
Question 2: In the context of decentralized storage, how does blockchain enhance data resilience compared to centralized cloud storage?
- By storing all files on a single high-performance server
- By distributing encrypted file shards across many nodes so no single point of failure exists (Correct answer)
- By compressing files to zero bytes on-chain
- By requiring government approval for file uploads
Correct answer: By distributing encrypted file shards across many nodes so no single point of failure exists
Networks like Filecoin or Storj split and distribute encrypted data shards so the network remains functional even if many nodes go offline.
Question 3: A company wants to use blockchain for its loyalty rewards program. What key problem does this solve over traditional points systems?
- It eliminates the need for customer purchases
- It enables points to be interoperable, tradable, or redeemable across multiple merchant partners (Correct answer)
- It gives unlimited points to all customers automatically
- It removes expiration dates by law
Correct answer: It enables points to be interoperable, tradable, or redeemable across multiple merchant partners
Tokenized loyalty points on a shared blockchain can be exchanged or redeemed across partner merchants without each company maintaining separate reconciliation systems.
Question 4: What distinguishes a permissioned blockchain use case in banking from a public blockchain use case in DeFi?
- Permissioned chains have no consensus mechanism
- Permissioned chains restrict participation to vetted institutions, while public chains are open to anyone (Correct answer)
- Public chains are faster and cheaper than permissioned chains in all cases
- DeFi requires KYC while banking does not
Correct answer: Permissioned chains restrict participation to vetted institutions, while public chains are open to anyone
Permissioned blockchains like Hyperledger Fabric limit node membership to approved entities, suiting regulated banking environments that need privacy and compliance.
Question 5: How can blockchain improve the management of intellectual property (IP) licensing in the entertainment industry?
- By making all content freely available to the public
- By recording license grants and usage rights on-chain so violations can be detected automatically (Correct answer)
- By replacing copyright law with token ownership
- By storing entire films as NFTs on-chain
Correct answer: By recording license grants and usage rights on-chain so violations can be detected automatically
On-chain IP registries record who holds what license, and smart contracts can enforce usage terms and trigger royalty payments when conditions are met.
Question 6: Which scenario best illustrates the use of blockchain in disaster relief fund distribution?
- A single nonprofit wires money to its own account for later distribution
- Aid tokens are sent directly to verified beneficiary wallets, bypassing intermediaries and reducing fraud (Correct answer)
- Governments stockpile supplies using cryptocurrency speculation
- Donors receive NFTs instead of tax deductions
Correct answer: Aid tokens are sent directly to verified beneficiary wallets, bypassing intermediaries and reducing fraud
Direct wallet distribution to verified beneficiaries ensures aid reaches intended recipients faster and with a fully auditable trail.
Question 7: A seafood company records each catch's GPS location, vessel ID, and timestamp on a blockchain. Which broad challenge does this address?
- Reducing the price of fish at retail
- Combating illegal, unreported, and unregulated (IUU) fishing through transparent provenance (Correct answer)
- Automating fishing vessel navigation
- Replacing fishing quotas with token allocation
Correct answer: Combating illegal, unreported, and unregulated (IUU) fishing through transparent provenance
Immutable on-chain records of catch origin make it easy for regulators and retailers to verify that seafood was legally harvested.
Blockchain Technology Use Cases 5
How does blockchain technology improve the accuracy of land title registries in the US?