Use Cases Flashcards
7 cards from real Blockchain Technology practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Use Cases flashcards as text
What is the primary challenge when applying blockchain to IoT device networks at scale?
Answer: Limited computational resources on devices make running full nodes impractical
Most IoT sensors have minimal CPU and battery capacity, making it infeasible to run full blockchain nodes; lightweight or off-chain solutions are needed.
A logistics company wants to reduce paperwork delays at customs. How does blockchain help?
Answer: It provides a shared, real-time digital record of shipment documents accessible to all parties
A permissioned blockchain shared among shippers, ports, and customs agencies eliminates manual document exchange and reduces clearance times.
In decentralized finance (DeFi), what is a 'flash loan' and why is it unique to blockchain?
Answer: An uncollateralized loan that must be borrowed and repaid within a single transaction block
Flash loans exploit smart contract atomicity: if the loan isn't repaid within the same transaction, the entire operation reverts, eliminating default risk.
How does blockchain support carbon credit markets in the US?
Answer: It creates transparent, auditable records of carbon offset issuance and retirement to prevent double-counting
On-chain carbon credit registries prevent the same offset from being sold twice by maintaining a single authoritative retirement record.
Which feature of public blockchain makes it suitable for transparent charitable donation tracking?
Answer: All transactions are publicly visible and auditable by anyone
Public blockchains let donors trace their contributions to final beneficiaries with full transparency, reducing misappropriation.
A startup issues tokenized bonds on a blockchain. What traditional intermediary does this primarily displace?
Answer: Investment banks and clearinghouses managing issuance and settlement
Tokenized bond issuance handled by smart contracts reduces or eliminates the role of investment banks and central clearinghouses in the bond lifecycle.
What is the main benefit of using a blockchain-based system for managing prescription drug histories in the US?
Answer: It prevents prescription fraud by creating an immutable, cross-pharmacy medication record
A shared blockchain prescription ledger lets pharmacists instantly verify whether a controlled substance has already been dispensed elsewhere, stopping 'doctor shopping.'