Blockchain Use Cases & Applications Flashcards

What is a Decentralized Autonomous Organization (DAO)?

Answer: An organization governed by smart contracts and token-holder voting

DAOs encode governance rules in smart contracts, letting members propose and vote on decisions.

Why are Layer 2 solutions such as the Lightning Network important for micropayment use cases?

Answer: They allow fast, low-cost transactions off the main chain with periodic settlement

Payment channels let parties transact many times off-chain and settle the net result on the base layer, cutting fees.

In a blockchain-based carbon credit marketplace, what key problem is addressed?

Answer: Double counting and lack of transparency in credit issuance and retirement

On-chain registries make it visible when a credit is issued, transferred, and retired, reducing double counting.

A shipping company replaces paper bills of lading with blockchain-based electronic records. What is the main benefit?

Answer: Faster, secure transfer of title documents and reduced fraud

Digital bills of lading can be transferred instantly with an auditable history, avoiding courier delays and forgery.

What is the primary purpose of a zero-knowledge proof in enterprise blockchain applications?

Answer: To prove a statement is true without revealing the underlying data

ZKPs let a party prove facts such as sufficient funds or compliance without exposing confidential details.

Which challenge most commonly slows enterprise blockchain adoption in supply chains?

Answer: Getting all ecosystem partners to join and share data on a common platform

Network value depends on participation, and initiatives like TradeLens shut down partly due to insufficient industry adoption.

In gaming, what does blockchain enable for in-game items represented as NFTs?

Answer: True player ownership and the ability to trade items outside the game publisher's control

NFT-based items live in players' wallets, so they can be sold or transferred on open marketplaces.