Homework on Consensus - Questions

Blockchain and Bitcoin 101
#2091

  1. “Truth” is verified collectively through the network.

  2. Blockchain provides incentives in the form of money to follow the rules and prove a trustless environment. Central databases rely on trust and can be altered or manipulated at will.

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#2092
  1. When we say that in blockchain, consensus determines the truth, what is meant is that the global consensus removes trust and reveals truth by laying it all out in front of the collective, for all to see. Due to everyone’s financial incentive to be honest, everyone, the consensus will agree upon the truth.
  2. This is different than a central databases determination of truth, due to the blockchains transparency and connection to the collective network. Having a global blockchain network removes the control and potential dishonesty that the one holds and puts it into the peoples nodes.
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#2093

  1. If everyone as a consensus cannot verify that it is true it is not true.

  2. In a central database truth is determined by who has control / editing privileges.

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#2094

  1. Blockchain is incentivised to reach consensus by verification of information, which is mathematically determined.

  2. in a central database the “truth” can be determined by an individual or party, without need for consensus.

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#2095
  1. Consensus determines the truth by verifying transactions throughout the network and ensuring agreement of a valid transaction i.e enough funds to spend, effectively building a trust-less system.
  2. A central database can be altered and data ( or truth) can be manipulated.
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#2096

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

Consensus determines the truth means when a transaction comes through a decentralised network or blockchain based system such as say, a BTC network, several parties are involved in reaching a collective agreement on what is true and what is not true. The parties collectively decide what comes through the different nodes and whether or not a transaction is valid. If there is an agreement, then the transaction is confirmed and accepted into the database or ledger. If an agreement is not reached, then the information is discarded. This collective agreement removes the need for trust involving any specific company, individual or entity. It involves mathematically proving that something works. Trust is removed as transactions are verified on the network. Participants of the collective decision-making process are incentivised or financially rewarded in telling the truth by playing by the rules.

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

Confirmation of truth in the transactions of a central database is determined by the claims of a specific company, individual or entity who make all the decisions that are to be trusted without verification. Only they are privy to add, edit or delete information as required. This company, individual or entity in turn is reliant in trusting others telling the truth.

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#2097

Hi @Shah! :smiley: Good answer! Welcome to the forum! :smiley:

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#2098

1- it means that the truth is decided and agreed on collectively by the miners.

2- in a central database there’s a central authority that decides the truth.

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#2099

  1. Consensus determines the truth in blockchain by having a network that confirms/verify if information/transactions is true or not true.

  2. This is different from a central database as it is decentralized in how information gets verified, in turn making it a trust-less system. Incentives add to the trust-less system as it gives the network the “incentive” to tell the truth by getting rewarded(incentive) to tell the truth.

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#2100

  1. All the parties agree in a fact/transaction/data is true, so it gets introduced in the chain because everyones agrees upon that fact, so it cannot be altered.

  2. Central database forces its “truth” to the users/clients, otherwise, clients cannot utilize it.

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#2101

  • What does it mean when we say that in blockchain, consensus determine the truth?
    Because all parties have verify the truth and without it it can be added on blockchain.

  • How is this different from how truth is determined in a central database?
    Central database can sometimes be corrupt and info not verified

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#2102
  1. This means that the computing power part of the network determines whether a transaction is true or false based on the most recent transactions- if true it is added to the blockchain and if false is it not.
  2. This is different from a central database because there is one party deciding what it true. If this party or databse is compromised then so is the truth.
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#2103
  1. When we say that in blockchain consensus determines the truth we mean that people are incentivized to tell the truth and that everyone can reject something that is not accurate, because everyone has the ability to verify if what someone says is actually accurate.
  2. This is different than how truth is determined in a central database because only that single entity has access to the data and everyone else has to believe that what that entity is saying is true, however, there is no way to check and see if they’re being truthful.
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#2104

When you say consensus determines the truth you are saying that many data bases have agreed that an action is legitimate and true.
This is different from a central data base that can be manipulated by adding information or changing information. This is why blockchain is trustless because the nodes have all agreed on the validity of the outcome( answer).

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#2105

  1. In blockchain, a consensus is an agreement met by multiple decision makers who are incentivized to act truthfully.

  2. A central database is vulnerable to inside manipulation by authorization. The truth is what ever the central authority feels like presenting it as.

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#2106

  1. The truth is represented in the blockchain after consensus has been met. An economical incentive motivates network participants to find the truth.

  2. A central database has a central authority controlling what is or is not added to the ledger.

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#2107

  1. It means that everybody who are participating in the blockchain (i.e. has a copy of the ledger) need to agree about all new entries (e.g. transactions) in the blockchain are true or false. As the database in this case is decentralized, the accuracy of the database depends on multiple “validators”.

  2. It is beneficial for all the participants to be on the same page, because i.e. in bitcoin all the other validators (nodes) should accept the mined block to receive the block reward. So, no malicious activity is beneficial for the users participating on the blockchain (this is game theory), because if they are cheating, no rewards will be granted (the network will refuse the entry).
    This is also true for companies, which rely on other companies. In a decentralized database it is almost impossible for a company to cheat, because the entries from other companies (e.g. suppliers, etc.) in the same decentralized ledger can easily debunk the “cheater” company. In a decentralized database “trust” as a human risk factor is removed and the whole database becomes trustless. On the other hand, a central database can be manipulated by the owner for its own beneficial interest, trust is depending on the owner of the database.

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#2108
  1. that means that in the blockchain everyone should verify everything and an information is true only if there doesn’t exist any case that can prove it’s not , like theoremes in math for example : a theorema is true if there aren’t any cases that can prove that it is false , if there is a case that can prove that the theorema is not true that theorema is false , even if it is true in millions of other cases, this creates a definition of absolute truth by verifying "each and every " case possible
    2)a central database has a center and that center already has the absolute truth values in it , where a consensus is used there is no need for any center just because absolute truth doesn’t exist from the beggining and is a result of consensus.
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#2109

  1. So, on blockchain there is a group of “elements” responsible for the consensus, this group represents the decentralisation of the network. On Bitcoin’s protocol, consensus are set to verify the meaning of all transactions, it validates funding history. This mechanism removes trust from the equation, because for a transaction to proceed and execute, all nodes must validate if those funds are really available on sender’s address and this global acknowledge represents consensus and the truth.

  2. On a central database, there is no decentralisation, so all “decisions” are made by only one part. There is no one else to check and validate it.

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#2110
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Because the database on the blockchain can be verified or added by an agreement from the computer network which follow the rules. Therefore, all transactions on blockchain is the truth without cheating.
  2. How is this different from how truth is determined in a central database?
    In central database, adding new transactions or information is done by human or a group of people which is possible to have some errors or bias.
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