ACCA · Question 11 · Syllabus C: Business functions, regulation and technology
Section A
CargoChain, an international freight forwarding company, has implemented a blockchain system to manage its bills of lading. The system uses 'smart contracts' that automatically release payment to the shipping vessel the moment GPS data confirms the ship has docked at the destination port. What is the primary advantage of using a smart contract in this scenario?
Answer options:
It ensures the physical cargo cannot be damaged during transit.
It removes the need for a trusted third-party intermediary to verify and execute the transaction.
It allows CargoChain to alter the contract terms retroactively without the vessel's permission.
It completely eliminates the risk of cyber-attacks on the GPS system.
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