Homework on Consensus - Questions

Blockchain and Bitcoin 101
#2792

Homework on Consensus - Questions

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

It means that the involved parties agree on what is acceptable. For example, in Bitcoin blockchain, node computers agree and confirm what transactions are valid checking that no account commits double spending.

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

In a central database, involved parties rely on the trustworthiness or reputation of a central authority. This puts great responsibility on the central authority. Unlike a blockchain, the truth is achieved through the consensus of the participants and open software is the basis of this truth in the network.

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#2793
  1. What does it mean when we say that in blockchain, consensus determine the truth?
  • Net of the computers have to come to an valid agreement. They are being rewarded for honesty.
  1. How is this different from how truth is determined in a central database?
  • Someone has a control about what is right or wrong - it can be compromised.
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#2794

The truth is determined by incentivized computers who agree or disagree on the truth of blocks as a whole. Those who are honest are rewarded and so the system perpetuates good actors.

2- in a central database there’s a central authority that controls everything. Even the truth. Look at Facebook.

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#2795

  1. The blockchain incentives the telling the truth and this ‘truth’ is verified across the decentralized blockchain network making it impossible to tamper/twist facts and truths.

  2. On a centralized database, the information can be modified by a centralized authority and there is no way for a common person to verify this information. Basically, making what this single/few centralized authority tell, has to be accepted as the truth.

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#2796

  • Consensus protocol is a set rules all the nodes of the blockchain execute, to agree on the validity of transactions and blocks and the state of the ledger. Nodes which do not follow the rules are disregarded. Nodes are incentivise to follow the rules. This ensures a fully trustless system.

  • In the case of a central database, the truth is centralized on one entity (company, server, individual/team…). This entity, alone, decides what is right or wrong. Users need to trust this particular entity.

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#2797

Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    All parties in a network have to agree that information is correct and unique. If there is no consensus the information is rejected.

  2. How is this different from how truth is determined in a central database? A central database contains only partial information and is only as reliable as it’s users and systems who enter the data. Data can be manipulated and it will be extremely difficult and labor intensive to trace information back through the source. In blockchain this will be much much easier and instant. Instant verification and therefore reliable.

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#2798
  1. Consensus means that all the ledgers on all the nodes have the same correct information incorrect information if no consensus between nodes then the transaction is rejected and not entered into the blockchain.
  2. In the central world the truth is what exists on that database but may be and possibly be different to that which exits on another database
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#2799
  1. What does it mean when we say that in blockchain, consensus determine the truth? It means that the network of computers looks to their local database and determines whether the transaction is truthful. If it is correct the network of computers agree to the transaction and publish it onto the blockchain.
  2. How is this different from how truth is determined in a central database? In a central database a central authrority submits the data entry and no one verifies whether its true we just have to trust them.
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#2800

1.A Blockchain is a supply network using multiple nodes that share data with each other, but when a decision is made to accept a transaction into the blockchain they are always made together with all parties. Meaning all nodes have to agree to the transaction. On top of that the blockchain has an incentive built in.

  1. Authorities/Executives that lie/make mistakes/hide mistakes/… through altering the database, because they have access. The owner or person that controls the database makes the truth, because he can change / copy the data at will.
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#2801

  1. The validation doesn’t come from one node only, in order for new data/transactions to be written enough nodes must confirm/validate to the same result first

  2. In a central database, the central database determines the truth. In practice this means the security of a central database relies on the security of that one central database, while in a blockchain, the security comes from the cumulative strength of all the minimum required nodes to reach consensus.

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#2802

[quote=“ivan, post:1, topic:8425”]

  • What does it mean when we say that in blockchain, consensus determines the truth?
    – Because Consensus is based on mutual consent. Its transparent and everyone can check if the transaction is valid or not. So here the truth is not dependent on a single entity. its spread over the community.

  • How is this different from how truth is determined in a central database?
    – In central database the truth is control by a single entity. We have no choice we have to forcefully trust them. And due to which chances of fraud increases.

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#2803
  1. Everyone is incentivized to tell the truth. Decentralization, trustlestness
  2. It is decentralized, all parties make decisions
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#2804

A1: Truth (eg. of a transaction) is decided and verified through the nodes of the blockchain network records in a complete decentralized manner.
Consensus is reached iff ALL nodes have agreed.Therefore trust is removed and transaction is verified.

A2: A central database is built on trust. This trust is a big point of failure.

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#2805

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It takes a unanimous agreement within a decentralized network.

  2. How is this different from how truth is determined in a central database?
    Does not need a unanimous agreement.

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#2806

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

The network has to accept and confirm all transactions. Trust is removed and replaced by incentive.

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

It is very hard or even impossible to verify every single transaction in a central database. Users need to trust one and one entity only, which makes them very vulnerable.

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#2807

  1. That all parties involved agree on what is taking place across the blockchain. This process is what makes the blockchain application trustless.

  2. In a central database you are taking the word of the company or person holding the database. It is hard to pull back the layers to verify previous participation and deliverables.

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#2808
  1. A blockchain consists of many nodes which have to agree on whether something e.g a transaction is true or false. Consensus is where several nodes agree/verify and as such it is deemed the truth.
  2. In a central database, there is no consensus, one party determines whether something is true or not.
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#2809

Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determines the truth?
  2. How is this different from how truth is determined in a central database?

1- In blockchain transactions are validated using a consensus protocol. A network of computers agrees upon how, when, what transactions go through. All the transactions are recorded in real-time and verifiable in case of unsettlement
2- Central databases rely on one or a few entities to manage the transaction process. It lacks transparency and constitutes a major threat for data alteration/breach

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#2810

1- It means we are using mathematics and the network of computers to verify and accept transactions without the need of third parties which can consist of individuals, companies, or governments to verify and accept transactions. Consensus creates a trustless system.

2- In central databases, individuals, companies, and/or governments are relied upon to verify and accept transactions. This truth process can lead to miscommunication or inaccuracies regarding the confirmation of transactions. Also, it leaves the room for possible manipulation by those in control of the central databases.

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#2811

  1. Consensus determines truth in blockchain because it requires a network of computers to verify the transaction making it difficult to process a fraudulent transaction. It is available to anyone down-stream of the supply chain and being that the consensus is incentivized it can thus be verified by interested parties.

  2. This is different from how truth is determined in a central database because the trust is put upon the controlling parties thus allowing them to alter or create fraudulent or unethical transactions.

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