CFA Level I · CFA Level I Exam · Introduction to Digital Assets
A consortium of regulated banks wants a shared ledger for settling interbank transfers. Participants must be identified, and the banks want to control who can validate transactions. The network design most appropriate for this purpose is:
A permissioned network is most appropriate. It restricts access to approved, identified participants and lets the consortium decide who validates transactions, which suits regulated banks. Open permissionless networks permit anonymous participation and unrestricted validators, which conflicts with the banks' compliance and control needs.
- Aa permissioned networkCorrect
- Ban anonymous permissionless network
- Ca proof-of-work public network open to all miners
Explanation
Identified participants and control over validators are features of a permissioned network. Open permissionless designs allow anonymous participation and unrestricted validation, which conflicts with the banks' regulatory and control requirements.
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