CBE Blockchain Use Cases & Applications 5 — Questions and Answers
Question 1: What is a Decentralized Autonomous Organization (DAO)?
- A government agency regulating blockchain
- A cryptocurrency mining pool
- A centralized company that accepts crypto payments
- An organization governed by smart contracts and token-holder voting (Correct answer)
Correct 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.
Question 2: Why are Layer 2 solutions such as the Lightning Network important for micropayment use cases?
- They allow fast, low-cost transactions off the main chain with periodic settlement (Correct answer)
- They eliminate the need for wallets
- They increase Bitcoin's maximum supply
- They make all transactions publicly anonymous
Correct 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.
Question 3: In a blockchain-based carbon credit marketplace, what key problem is addressed?
- Increasing industrial emissions limits
- Double counting and lack of transparency in credit issuance and retirement (Correct answer)
- Replacing the need for emission measurements
- Converting carbon directly into tokens chemically
Correct 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.
Question 4: A shipping company replaces paper bills of lading with blockchain-based electronic records. What is the main benefit?
- Ships travel faster
- Ports no longer require customs inspections
- Faster, secure transfer of title documents and reduced fraud (Correct answer)
- Fuel costs are automatically hedged
Correct 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.
Question 5: What is the primary purpose of a zero-knowledge proof in enterprise blockchain applications?
- To prove a statement is true without revealing the underlying data (Correct answer)
- To speed up block mining
- To delete old transactions
- To convert tokens between chains
Correct 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.
Question 6: Which challenge most commonly slows enterprise blockchain adoption in supply chains?
- Blockchains cannot store text data
- Smart contracts cannot handle numbers
- Public keys are too short
- Getting all ecosystem partners to join and share data on a common platform (Correct answer)
Correct 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.
Question 7: In gaming, what does blockchain enable for in-game items represented as NFTs?
- Unlimited duplication of rare items
- Faster graphics rendering
- True player ownership and the ability to trade items outside the game publisher's control (Correct answer)
- Automatic game balancing
Correct 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.
CBE Blockchain Use Cases & Applications 5
What is a Decentralized Autonomous Organization (DAO)?