Homework on Consensus - Questions

Blockchain and Bitcoin 101
#201

  1. A network of computers have to agree on every transaction and verify each one-trustless.

  2. On a centralized database, one person could verify the transaction which does not make it trustless.

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#202

In Blockchain, concensus determine the truth because every single miner on the network must have the same agreement in order to verify transaction or information. And because every miner are everywhere and don’t know eachother (decentralisation) inventive also get involved for rewards.

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#203

Hello all,

  1. One claim coming from a ledger has to be verified by all other nodes. The claim, regardless of the authority it comes from, is insufficient to determine its truthfulness. Multiple actors determine what is “true”.

  2. In a central database the one with the correct credentials makes a claim, and that is taken at face value, unless it is actively challenged. With blockchain, and even more so with overlapping blockchains (in the example of the lesson, the milk chain and the sugar chain crossing) anomalies can be pinpointed with a greater degree of precision.

Best

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#204
  1. In a descentralized public blockchain network each node is incentivized with rewards to be honest. If the network agrees a transaction has happened it gets added to the blockchain, and if not it’s dismissed. Since the incentives to play by the rules are bigger than the ones to deceive the network, truth is legitimated and verified collectively.
  2. In a central database one individual can have control over the network and thus can choose what is truth and what’s not.
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#205
  1. Truth is verified
  2. Central database- make up the rules as you go…
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#206
  1. concensus is an incentivised network of verification that maintains a trustless system.
  2. a centralised data base has the ability under a bad actor to create false or misleading data at the expense of others for the benefit of the bad actor.
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#207

  1. blockchain removes need of trust by having network of computers reaching consensus. And with financial incentives network participants are saying truth.

  2. In central database truth is determined by one source of information - that central database.

#208

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

A consensus algorithm, like bitcoin’s proof of work, does two things: it ensures that the next block in a blockchain is the one and only version of the truth, and it keeps powerful adversaries from derailing the system and successfully forking the chain.

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

In information systems design and theory, single source of truth ( SSOT ) is the practice of structuring information models and associated data schema such that every data element is mastered (or edited) in only one place. Any possible linkages to this data element are by reference only. Because all other locations of the data just refer back to the primary “source of truth” location, updates to the data element in the primary location propagate to the entire system without the possibility of a duplicate value somewhere being forgotten.

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#209
  1. What does it mean when we say that in blockchain, consensus determines the truth? This means multiple entities comes to an agreement to make a decentralized decision that is trustless and verifiable.
  2. How is this different from how truth is determined in a central database? In a central database a central authority must be trusted to make decisions which are not readily auditable if at all. This single point of authority can also be coerced to alter the database.
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#210

In Blockchain consensus determine the truth because of the general agreement of the different miners.
It is different from how truth is determined in a central database because of inventive

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#211

1- Consensus is the transaction verifying process of a blockchain network. It involve multiple people or nodes who, who applying a mathemathical model, check -and doublecheck- that the transacion has funds and has been made according the rules.

2- The truth in a central database is determined by the truth in the manager of the database.

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#212
  1. In blockchain, you are financially incentivized to tell the truth and that is a driver for no cheating.
  2. In a central database, there are very limited checks and balances on truth, if any.
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#213

  1. Each transaction must be agreed upon by the network. The financial incentive for each member of the network ensures that cheating in practically impossible.

  2. A central database can have only one owner that can decide what transactions get added, modified, or deleted, without verification of the accuracy of the data.

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#214
  1. What does it mean when we say that in blockchain, consensus determine the truth?
  • Consensus allows truth to be determined based on the collective agreement of all nodes involved and not a single body. It removes the need for trust.
  1. How is this different from how truth is determined in a central database?
  • In a central database, there are central administrators that can arbitrarily set the “truth”. Consensus loses to central bodies in this model.
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#215
  1. Consensus determines the truth means that It is the agreement of the distributed entities that determines what is true and not.
  2. There are no “others” that have a say in what is true or not. Therefore central entity must be trusted.
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#216

  1. The consensus is reached only when multiple users in the network simultaneously check and verify the data entered into the system. After being accepted by all users can a new transaction get accepted into the blockchain.
    In a trustless system, we can be always sure of our information and start to have facts instead of data, and therefore truth.

  2. In a centralized database, only a few minorities get to decide the truth for the majority. Consensus to them is reached after meeting only with all the immediate shareholders (incentive-holders), with total disregard for the others.
    In a decentralized database, the consensus is built on incentives for all users to follow a set of rules that ensure the ultimate truth by everyone concurrently.

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#217

1-Consensus creates fairness within the blockchain system. All computers on network must agree what is true. This builds a trustless system.
2-Central database=central authority
In a central database not everyone has a copy of transactions. Therefor transaction can be altered

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#218

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means that multiple parties are all coming to agreement to verify data/transactions are valid and are incentivized to do so, not one single party is verifying meaning the trust is removed.

  2. How is this different from how truth is determined in a central database?
    A centralized database can have one owner who determines what information or transactions can be added/allowed or can be edited/blocked/removed at any time.

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#219
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    The truth is decided by the nodes, which needs consensus to do it.
  2. How is this different from how truth is determined in a central database?
    The truth from the central database can be skewed to the agenda of holders of database and can harm the community.
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#220

Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth? Multiple parties on the blockchain verifying that the information is correct, this allowing the transaction to go through after multiple verifications. No single party, centralization is involved.
  2. How is this different from how truth is determined in a central database? A traditional database could be corrupted as it is not decentralized and how can there be trust when it is possible to have the database tampered with.
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