Homework on Consensus - Questions

Blockchain and Bitcoin 101
#2031
  1. Consensus determines truth because miners are incentivized with money to verify the truth.
  2. In a central database, truth is only based on trust, which is often not verifiable.
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#2032

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    In blockchain the network works together to verify a transaction the entities in the network are rewarded for honesty , therefore the truth is arrived at mathematically in a decentralised manner, no one party can tamper with the system .

  2. How is this different from how truth is determined in a central database?

A central database will have humans with access who can alter the data for their own purposes and truth probably will not be rewarded we therefore have to trust that one authority or individual , which is far from ideal .

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#2033
  1. Blockchain network consists of nodes that are built on incentives to always tell the truth. They verify each new transaction, their decisions are double-checked and approved by other nodes. Only then the consensus is reached.
  2. Thanks to consensus, the blockchain can function as a trustless system, provenance can be verified. In central databases, the data are given by a central authority which creates a need for trust from other parties.
3 Likes
#2034
  1. What does it mean when we say that in blockchain, consensus determine the truth?

In blockchain, the network uses maths to verify the truth and jointly decides the truth. All members of the blockchain must be in consensus for a TX to be added to the public ledger.

  1. How is this different from how truth is determined in a central database?

In a central database, the individual owner of the database decides the truth. This means that all other parties must trust that owner.

2 Likes
#2035
  1. It means that nodes work together by checking the solution provided by one of the nodes thus working together to reach consensus.
    2.This system is decentralized and trustless.
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#2036

Homework on Consensus - Questions July 16th 2020,

  1. What does it mean when we say that in blockchain, consensus determine the truth?

The consensus is gained and applied when all Nodes in a network agree to the validity of the data on the blockchain database(public ledger). You may think of this process when a group of people verify and agree on the truth(validity) of the data on hand. No one single person decides the validity of the data. All the people in the group share the same copy of the public ledger(blockchain database) and agree to the truth that is verified by everyone.

  1. How is this different from how truth is determined in a central database?

On a central database, only one person or one party verify, confirm, and declare the truth of the data or transaction on the database. This removes the ability for the database to be verified by multiple parties. This type of process has limited trust because the central authority can manipulate the database, and this manipulation is not verified by multiple people. When multiple parties verify the blockchain database and make a final decision on its validity, this is known as decentralization.

-Hector A. Martinez

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#2037

  1. It means that everyone works as a collective to determine the truth. So any facts that the seller/company provides about their product are verified by other people that are a part of production.

  2. It makes for a happy customer because it is a great way to eliminate the trust factor everyone that is a part of production tells you what is in the product.
    Where as in a normal database the seller or the company are the people who give you a truth, which doesn’t necessarily mean that it is the real truth.

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#2038

  1. That the data is verified by a decentralised system, so many computers on the collective blockchain verify the actual data together.

  2. In a centralised database, an authority can manipulate the data from the truth.

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#2039
  1. Nodes in the network are working together to verify behavior across the blockchain. There is no trust involved. All participants have a function in the work involved.
  2. In a traditional database, there is a central authority dictating what is “true” and what isn’t.
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#2040

Homework on Consensus - Questions

What does it mean when we say that in blockchain, consensus determine the truth?

In the blockchain all network participants (nodes) must agree whether a certain piece of information is added into a blockchain.

How is this different from how truth is determined in a central database?

In centralized database truth is determined by someone who has a privileged (admin) access to the database.

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#2041
  1. It means that a blockchain is verified by a network through consensus not trust.
  2. The difference is that multiple parties involved in the process have to agree on the original data there is no single source that can alter a portion of the information.
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#2042

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means that in blockchain every one has the chance to assess the data and it is verified by all the stakeholders in the system. Also no one has the incentive to act in an inadequate way as on the long run they will lose money.

  2. How is this different from how truth is determined in a central database?
    On the other hand in a central database system only insiders have the access to data and no one can really verify what is true and correct and what is not.

1 Like
#2043
  1. In BC, consensus determines truth because all other nodes on the network are monitoring and have to agree. They are also incentivized to be truthful through a reward system.
  2. In a central database there exists no consensus, reward, or incentives to be honest. All control lies centrally as a single point of failure.
2 Likes
#2044

  • What does it mean when we say that in blockchain, consensus determine the truth?
    All participants in the network must verify and determine the transaction is valid.

  • How is this different from how truth is determined in a central database?
    You do not depend on only one entity but in more interconnected entities which make a consensus to verify autheticity

2 Likes
#2045

  1. It means that confirmation among a network of financially incentivised decentralized computers come to an agreement about transactions and are rewarded for the truth.

  2. Central database is controlled by one source or location that can be changed or removed, being one or centralized, Consensus cannot be utilized.

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#2046

  1. everyone in the network has to agree that certain transaction is right and they do so because they are incentivized

  2. Central database is controlled by a single authority, it isn’t trustless and ‘truth’ cannot be verified

2 Likes
#2047

  1. In blockchain consensus determines the truth through the use of provenance. By having the digital ledger distributed across a network of computers publicly verifiable, it removes the need for trust.

  2. In a centralized database one must trust the individuals in control of the database.

1 Like
#2048

#1verifying involvement in a network of communication.#2not one person can break the chain of informasion !

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#2049

  1. It means that majority of participants has to agree on something in order for it to be true.

  2. In central database the truth is determined by central trusted entity without participation of other involved parties.

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#2050

1. What does it mean when we say that in blockchain, consensus determine the truth? The computers all have to agree on which data is true/false to then determine what to add to the blockchain - so they have to reach a consensus.

2. How is this different from how truth is determined in a central database? Ivan talks about this being a system where actors are financially incentivized to play by the rules. You gain money by validating transactions honestly through various consensus mechanisms. With a central database if the central authority is compromised how do you trust the database (which stats would you trust coming out of an authoritarian regime, how do you trust various activities from MNCs when they are the same authority supplying and restricting that data). Also with the consensus mechanism you can’t remove prior transactions on the blockchain so that is an added layer of protection for the integrity of the database as a whole.

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