Homework on Consensus - Questions

Blockchain and Bitcoin 101
#2171

  1. the truth is determined by the many parties involved, all of whom are incentivized to ensure correct information is provided

  2. A central database has a more localized point of failure, if the person or machine it is based around is corrupted the data can be ruined.

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#2172

1- What we mean is that the ‘truth’ is delegated to the network rather than held by individuals or companies. This is possible through an incentive system whereby nodes get a monetary reward each time they verify data, ensuring trust.
2- In a centralised database, one needs to trust the ‘owner’ that all the information within the DB is accurate and trustworthy. This is difficult to achieve since the owner will most likely try to benefit himself by twisting information to his advantage.

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#2173

1: The previous block in the chain affects the contents of the new block. All nodes have the previous block, and if a node is attempting to insert a new block that is wrong, or dishonest, the peer nodes will reject that first nodes results. There most be agreement among the nodes in the network that the results are acceptable.

  1. Central databases, age old computer adage: GIGO, Garbage In Garbage Out. There is no consensus mechanism on a central database, because there are no peers.
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#2174

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Answer: The entire network of nodes powering the blockchain perform a mathematical check on any new information being proposed to be added on the blockchain. Before that transaction is added, the majority of nodes must agree via consensus that the transaction is valid before it get’s added.

  2. How is this different from how truth is determined in a central database?
    Answer: In a central DB, the authority in control can make changes to the DB at any point without agreement from other parties involved. This forces the other parties to “trust” the controlling authority…who has the ABILITY to change the DB at any point. With blockchain consensus, no central authority even has that ability.

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#2175

Homework on Consensus - Questions

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

It’s a consensus of all computers/nodes, no real way to cheat because all have to sign off & verify - so you don’t need truth, we verify by computers mathematically

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

Anyone can probably lie & get around things, but with decentralized database & all computers - no way to really lie

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#2176
  1. What does it mean when we say that in blockchain, consensus determine the truth?
  • There is no way to fake data or transactions. Other that human fake/false inputs in the case of supply chain data.
  1. How is this different from how truth is determined in a central database?
  • Data might be compromised along the path in this kind of database. Unlike a Blockchain ledger
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#2177

  1. it means that all transactions are being confirmed as true by different entities (participants) and on all computers participating in the network. If agreement is achieved the transaction is added to the blockchain.

  2. In a regular database, there’s a single copy of the transaction which can be altered by central authority of the database and thus, can not be fully trusted by all users.

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#2178

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

This means that all information entering the blockchain is verified as true by several different unrelated parties. All parties involved need to agree that the new information is correct. All parties are incentivised to verify correct data.

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

In a central database it is just one party that can be involved in determining the data as fact. This poses a risk to the data’s integrity as they may have ulterior motives to bend data in their favor.

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#2179

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Every participant of the blockchain network is incentivized to tell the truth ant that is how consensus is reached therefore if someone tries to say a lie, consensus will determine who tells the truth.

  2. How is this different from how truth is determined in a central database?
    In a central database any participant can say whatever he/she wants an the truth is based on trust therefore you never now who is telling the truth, but you choose to trust someone’s truth.

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#2180

  1. It means that consensus remove trust from businesses because each information can be easily verify and everyone involve have to play by the rule, so everyone must be honest and they get money by doing that way.

  2. It is different in the way that in central database information can be manipulated and only certain party of business has access to real information. Therefore the so called truth is determinate according to the agenda of those who have access to real information.

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#2181

  1. The consent is the agreement of a transaction on the ledger. The consensus of all participants determine what is true on the blockchain.

  2. Only the central authority determines the truth in a central database.

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#2182
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    This means that entities/network within a decentralized system come to an agreement. This agreement is usually received by incentives (usually financial). Entities will only gain money if they are being honest and loses when they are being dishonest. Consensus is removing trust and this is achieved through incentives.
  2. How is this different from how truth is determined in a central database?
    The differences is it is decentralize and trustless.
    Central database are use one entity and that one entity has full authorization over everything. With this type of system, it can become corrupt because it is difficult to audit.
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#2183

1.Each node verifies the veracity of the information and they have incentives to do it honestly.

2.in a central database the veracity of the information normally passes by some human being who can be corrupted for different reasons and that generates mistrust

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#2184

  1. It means majority of the computers in that blockchain network approve a statement in supply chain.

  2. I a central database supply chain is managed by individual company. so truth is only based on trust, whereas in blockchain it is decentralised and verified by majority of computers in that network.

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#2185

  1. Multiple copies of the blockchain are compared against one another and the truth of a transaction is determined by the network, not a central authority. The system is setup to incentivize following the rules.

  2. Truth in a central database is determined by the data managed via a central authority, and is more subject to corruption or error.

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#2186

  1. Decisions on which transactions are valid are determined by a distributed network of participants, that contribute computational power to perform cryptographic calculations, which as a result, determines which transactions are valid (true), based on the blockchain’s history. This way, consensus is distributed and the truth is not decided by any single entity; which as a result makes the consensus mechanism, trust-less.

  2. Truth is a central database is dependent on a central entity deciding what is valid. participants who rely on this database must trust the central entity to make honest decisions. In terms of consensus, a central database is dependent on trust.

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#2187
  1. it means that everyone automatically agree on terms which equal to everyone and its no way to go around
  2. in central database the truth verifies by single profile, but in blockchain it goes trough all profiles simultaneously
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#2188

  1. truth in blockchain is determined thru Consensus, where an agreement of all nodes in the network must be made to determine the validity of each transaction

  2. the information on a central database is usually decided by a third party, where information can be at risk of manipulation and therefore is based on trust vs truth

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#2189
  1. In the network of computers everyone must agree.
  2. One central entity decides for everyone.
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#2190

1:
The majority decides the truth wich makes the system trustless.
2:
In a central DB the owner is god and determines the truth.

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