Homework on Consensus - Questions

Blockchain and Bitcoin 101
#2752
  1. The truth is that all parties agree and verify the transaction
  2. In a centralized database only one party(central party) needs to verify the transaction
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#2753

  1. All participants (computers/nodes) in the network have to agree on the addition of new data into the blockchain.

  2. In a centralized database, the owner of the database can change the database at will.

2 Likes
#2754

2.transactions are verified by the block chain vs. People

2 Likes
#2755

In blockchain, consensus determine the truth because everything transaction goes through an agreement with the entire network needs to be confirmed and then accepted. Several parties has to verify before it can be considered as the truth and be added to the ledger. People has an incentive to tell the truth.

In a central database, the truth can be manipulated because everything is controlled by one party or middle man. It is very to cheat the system.

2 Likes
#2756

  • What does it mean when we say that in blockchain, consensus determine the truth?
    When a transaction occurs all the nodes have to verify and agree that this is a valid transaction since all involved have an economic incentive to verify and tell the truth and all have to agree.

  • How is this different from how truth is determined in a central database?
    In a central database, whoever controls it can go and alter any of the registered transactions for any reason, and change the record and there is nobody who can verify or check this, so truth becomes relative, and unverifiable.

2 Likes
#2757

  1. Blockchain requires all nodes to verify and publish each block. If any previous entry is modified by a specific Node that will create a hash that does not match with that of the other nodes thus making it invalid and will not be published on the Blockchain.

  2. The reason this is different from a central database is because a central database requires a singular manager to verify information that is put into these database. This requires a trusted middle-man by all parties that probably cost a lot of money and in theory every middle-man has an opportunity to be fraudulent no matter how trusted they are. With Blockchain, if any node attempts to be fraudulent the hash’s will not matchup and would be denied by Blockchain making it a truly trustless system.

2 Likes
#2758

  1. Consensus gives us provenance. Verifying information. All decisions are double checked. No one person or party can make a decision without consensus.

  2. Truth can be determined by a single person in a central database.

1 Like
#2759

Homework on Consensus - Questions

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

Consensus in blockchain is where vast majority of decision-makers (networks) verify that a particular block is true. Consensus is built upon the idea of incentivising the people to be honest and they are rewarded for validating the query. This discourages fraudulent behaviour as rejected transactions will result in the miner through POW to lose money.

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

In a central database, the owner is the truth. There is no need for any other party to verify.

1 Like
#2760

  1. It means that decisions are not “one-sided”. Multiple nodes have a saying/opinion on what “the truth” is and therefore it can’t be easily manipulated.

  2. In Central databases decisions are made by single authority - they can be manipulated somewhat like “History is written by the winner”, whoever has control over the Database can say what “the truth” is.

1 Like
#2761
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means that the truth is determined by having the majority of the participants agreement or verification.
  2. How is this different from how truth is determined in a central database?
    In the cases of central database, the truth can be changed or rewritten by the owner of the database.
1 Like
#2762
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Many different nodes agree that the data represents the transactions that happened.
  2. How is this different from how truth is determined in a central database?
    The user must trust that central database has not been altered to show data that is not reality.
1 Like
#2763

Homework on Consensus - Qs

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Transactions on the blockchain need to be approved and accepted by the entire network (consensus) who are rewarded to be truthful.

  2. How is this different from how truth is determined in a central database?
    A central database can be altered and increased gains can be made by manipulated transactions.

1 Like
#2764
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Answer:
    Consensus is when all nodes agree on a transaction to ensure its trustless and validated.
    2.How is this different from how truth is determined in a central database?
    Answer:
    A database is centralised and can be edited/deleted, a blockchain is trustless and decentralized.
1 Like
#2765
  • What does it mean when we say that in blockchain, consensus determine the truth?

Blockchain is collaborative, every user in the community is rewarded for telling the truth / verifying information

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

Truth is subjective depending on point of view. A central database is run by a hierarchy where the truth is determined from the top.

1 Like
#2766
  1. What does it mean when we say that in blockchain, consensus determine the truth?
  • Multiple decisions are made together as a collective, not one single Party governs the consesus. The truth is reached by multiple Party’s by all agreeing the same data, validating the truth.
  1. How is this different from how truth is determined in a central database?
  • Central databases don’t usually have any incentives for telling the truth as proof of authority is only required which is open to manipulation - this makes it difficult to independently audit and verify the “truth” as it is the only source of information.
1 Like
#2767

  1. What it means is it all the parties involved in the network has to agree that the new data entered is valid. Once it validated by everyone it is stored in the blockchain forever.

  2. On a central database the truth is determined by a single party or a small group of people, they can lie and alter the data. Hence blockchain technology enables trustless storage of data, transactions, etc…

1 Like
#2768

  1. It’s the network of computers that double-checks the information for validity through incentives.

  2. In a centralized database, you have to trust the information provider for telling the truth without actually verifying it.

1 Like
#2769

Homework on Consensus - Answers

  1. Consensus relies on a network that is incentivized to verify transactional conditions, if consensus cannot be reached, there must be something incorrect with the transaction which is therefore cancelled.
  2. Truth in a central database is subjective to who controls the database. There is no independent verification so human error and nefarious actors can run wild.
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#2770

.1. All the participants of the network are financially incentivized to act in a honest way. So if the consensus is reached, it means that the participants validated the transactions registered in the ledger and were rewarded for doing so, meaning that transaction is true.

  1. In a central database you have to trust the central entity responsible for the registration of the transactions, assuming the counterparty risk of mishandling such transactions. In the blockchain the system works in a trustless way, meaning we do not have to trust a central entity to know the information recorded is true.
1 Like
#2771

  1. “Consensus determines the truth” means that the network consensus agreed upon by globally distributed computers, is the real truth. Everyone is financially incentivized to be honest and correct, making it nearly impossible to create a bogus transaction on the blockchain. Anyone that sees something, whether its wrong or right, is incentivized to make the right decision, therefore we can be trestles and accept the consensus as the truth.

  2. This is much different than how truth is determined in centralized databases. Truth is determined by individuals who often have ulterior motives, not by mathematics and cryptography.

1 Like