Homework on Consensus - Questions

Blockchain and Bitcoin 101
#2471

  1. A blockchain consensus removes the need for trust (in the traditional sense). There is no need to trust an entity for it’s data, accuracy etc. The truth is agreed upon via a network consensus on the blockchain and is subsequently inscribed on this “digital stone.” Participants are incentivized to act in truth by monetary compensation.

  2. A centralized database can be corrupted, lost, fudged, etc. as it is based on trust and the work of a sole entity or effectively so.

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#2472

1)The network determines the truth, every node needs to agree or disagree before completing a transaction.

2)Single human interaction can manipulate database and decide what is the truth or no.

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#2473

  1. Blockchain consensus determines the truth through the agreement of multiple networks verifying that a process has actually happend or that a proper transactions has taken place.

  2. With a central database one must rely/trust on a single entity’s verification. With a central database you have to believe that whatever they are telling you is true.

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#2474

1- By allowing multiple centers of verification the only way to say a transaction in true is by all machines having the same data. No consensus = phony transaction.
2- Centralized databases have all control on one authority and could easily manipulate a transaction.

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#2475

  1. Consensus determine the truth. Everyone plays by the rules, that is achieved through incentives. No cheat possible in Blockchains through the check in the Network that works unified.

  2. In a central Database, you have to trust. You don’t have the agreement of the decentralized Network you have on Blockchains.

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#2476

  1. The whole meaning of consensus is about a data that everyone on the network agrees on, either is correct or wrong. So when everyone is agreeing on some particular transaction (DATA) or disagreeing, its easy to know what is right or what is wrong.
    In the other hand since consensus is all about getting incentives every player in the network tries to stay on track and follow the rules.

  2. In a centralised dabase model there are always trust involved to that particular centre. simply saying there is no third party to validate the process or the product.

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#2477
  1. There are many parties that contribute to the veracity of the data being used to make transaction decisions as to whether the transaction will be approved and placed into the database permanently. Those connected through the blockchain are incentivized to tell the truth about their part in contributing to the subject end product or service. Those in the decentralized blockchain network who represent the decision-making computers do so on an individual basis and provide their feedback as to how the transaction should be interpreted based on contributed evidence, when the computers in the blockchain reach the same conclusion there is consensus.
  2. Central database transaction decision making is more or less one dimensional with precious little data available to assist those making decisions as to the truth of the matter. Central database participants are, by comparison to the blockchain scenario, incentivized to do anything possible to solidify their position as worthy and the transaction is based heavily on trust since research in great detail is not expedient.
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#2478

  • What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus is the agreement of all parties operating on the blockchain when data is written to a block.
    All parties are incentivised to determine the truth and reject data that doesn’t tally with everyone else ledger

  • How is this different from how truth is determined in a central database?
    Traditional databases operate on referential integrity rather than consensus therefore values can be changed and manipulated without any checks or verification taking place.
    Blockchain ensures that verification is sort across all parties before data is added.

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#2479
  1. Consensus determines the truth through a network that agrees whether the recent transaction is good or bad. if it is good then it gets added to the ledger if it is bad it gets thrown into the trashbin.
    it is all about trustlessness. and more about verification of that things are legit.

2.) On a Centralized Database, the government can intervene and the truth of things is very hard to determine because the owner can change it or delete it or make it disappear completely which will make it difficult. while here on the blockchain consensus, everything is public and can be accessed by everyone and nothing can be removed.

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#2480

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

It means a decentralised global network of computers collectively calculates the validity of information , multiple confirmations are required before information/data/transaction can be verified and written to the blockchain. This removes the requirement of trust because there is no way to cheat.
Once the information is written on the blockchain it’s is always there & can be accessed by anyone with access to the internet . In a nutshell there’s no need for Trust because it’s verified then you can see the proof it’s verified because it’s forever on the chain.

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

In a centralised data base we must Trust the Authorised entity to complete a transaction . We have to trust it will pass through any intermediaries without being manipulated / delayed / incorrect.
There is no centralised ledger we can access to view the transaction.

Thanks I’m really enjoying the courses so far .

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#2481
  1. By having a distributed network of computers running a globally decentralized ledger truth can be determined by the validation of the ledger through the incentivizing of all players to follow the rules.
  2. A centralized database can incentivize the controlling parties of the database to censor the data, eliminate transactions that are not favorable to certain parties, and determine the rules of the data as the controlling centralized parties see fit.
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#2482
  1. By having the encrypted blockchain verified by computers by having several different systems in different locations agree the information is correct the more trust we can put into the transaction.

2.With centralized databases the truth is determined by what the owners of the database put into it. Without having to have any information verified.

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#2483

So glad to see you in here with me , looks like we are at the same stage . Did you do the beginners as well or just jump into this 1 .

#2484

All nodes in the blockchain network agree that the information that has been added to the chain is correct.

Information that is added to a centralized database is placed there by a single source and therefore that single source determines “truth”.

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#2485
  1. Multiple decision makers are required. Decision makers are incentivized to find truth. Network validation prevents fraud. Network redundancy prevents data loss.
  2. Database owner can independantly corrupt data. Proof of authority is all that is required. Difficult or impossible to independantly to audit.
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#2486

I started with blockchain & bitcoin 101. Just to get things going

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#2487
  1. The majority of participants have to agree to be able to add the information to the blockchain. It’s like a voting mechanism.
  2. Central database relies on one central party to say what is true, whether that is the truth or not. Very hard to verify also.
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#2488
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means effectively any transactions need to be verified but the majority if the participants
  2. How is this different from how truth is determined in a central database?
    the truth would be determined by the owner of the DB
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#2489

  1. When new information is added to the blockchain, old information has to add up with the information presented. When the different parties of the network have validated that the new information adds up with the old, consensus is reached and the information is accepted into the blockchain.

  2. In a central database one party is allowed to validate the information, but most importantly, it doesn’t have to add up with old information.

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#2490

  1. With blockchain, every new block of data needs to be verified by multiple independent validator nodes. If enough (e.g. 3) validators reach a consensus on the block validation, the block is added. In case they cannot reach a consensus, or find the information to be false, the block is discarded.

  2. In a central database, data is handled without independent validation. The central authority is the truth.

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