🧠 On-Chain Microcredit & Buy-Now-Pay-Later Trivia Quiz

1. Which core limitation of traditional microcredit systems can blockchain-based credit scoring directly improve?
   A. High interest rates caused by inflation
   B. Lack of physical banking branches
   C. Opaque borrower histories and unverifiable repayment data
   D. Limited demand for small loans
2. In most Buy-Now-Pay-Later models, what key risk emerges from off-chain, siloed credit assessments?
   A. Overcollateralization of consumer debt
   B. Fragmented credit histories across providers
   C. Excessive gas fees
   D. Mandatory identity disclosure
3. Which data source is most commonly used in on-chain credit scoring models?
   A. Government-issued tax records
   B. Social media engagement metrics
   C. Wallet transaction history and smart contract interactions
   D. Traditional FICO credit reports
4. Which organization pioneered group-based lending to reduce default risk without collateral?
   A. World Bank
   B. Grameen Bank
   C. International Monetary Fund
   D. Bank for International Settlements
5. From a blockchain perspective, what is a major advantage of recording BNPL repayments on-chain?
   A. Lower consumer prices
   B. Automatic currency conversion
   C. Public, tamper-resistant repayment reputation
   D. Elimination of interest rates
6. Why is decentralized identity (DID) critical for on-chain microcredit systems?
   A. It enforces biometric surveillance
   B. It replaces smart contracts
   C. It allows borrowers to control and reuse their credit reputation across platforms
   D. It guarantees zero default risk
7. Which structural difference makes BNPL credit scoring harder than traditional installment loans?
   A. BNPL always requires collateral
   B. BNPL transactions are usually short-term and low-value but high-frequency
   C. BNPL cannot be automated
   D. BNPL is limited to physical retail
8. What role do zero-knowledge proofs (ZKPs) play in blockchain-based credit systems?
   A. They publicly expose user balances
   B. They eliminate the need for identity
   C. They allow creditworthiness verification without revealing raw personal data
   D. They replace lending protocols
9. Which metric is most relevant when translating microcredit behavior into on-chain credit scores?
   A. National GDP growth
   B. Wallet age and repayment consistency
   C. Token market capitalization
   D. Validator uptime
10. Which future scenario best reflects a blockchain-enabled BNPL ecosystem?
    A. BNPL limited to centralized fintech apps
    B. Credit limits fixed by governments
    C. Portable, composable credit scores usable across multiple BNPL providers
    D. Elimination of consumer lending

✅ Answer Key

1. C
2. B
3. C
4. B
5. C
6. C
7. B
8. C
9. B
10. C