Homework on Consensus - Questions

Blockchain and Bitcoin 101
#2873
  1. Agreement, among a number of different parties, on a decision to be made concerning given activities
  2. In a central database, decision is made by a sole party
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#2874

  • What does it mean when we say that in blockchain, consensus determine the truth?
    Becasue its verified by all computers in the network, and its impossible to cheat or change something that has been already saved in blockchain.

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

In central database truth is determined by authorization, only authorized users can create or edit data.

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#2875
  1. several parties on the blockchain come to an agreement on the truth. trust through consensus built on incentives to play by the rules.
  2. having one person or entity that relies on trust.
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#2876

  1. It means that any piece of data recorded on the blockchain was agreed to by multiple parties, so the information will not be skewed.

  2. In a central database, you are basically taking someone’s word when the information could have been changed by a single entity. There was never any consensus reached.

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#2878

Homework on Consensus - Questions

1. What does it mean when we say that in blockchain, consensus determine the truth?
The network uses a consensus algorithm which everyone agrees upon that guarantees in a trustless and decentralized way that the information added to the blockchain is valid.

2. How is this different from how truth is determined in a central database?
The difference is that in a central database the decision making is restricted to a central authority that decides what is truth.

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#2879

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means that the action of verify (any info) remove the need of trust in each transaction, “Don’t Trust, Verifiy”

  2. How is this different from how truth is determined in a central database?
    the governance of the database, if we have a central authority this authority can make changes in the database when ever he wants, in Blockchain this is impossible (Stone Data)

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#2880

Answer 1: At all times all decissions made together, double checked. Ledger is checked if enough funds are available to spend.
Answer 2: It’s very difficult to cheat, no Trust involved, because the verification can be done in the network/chain. That’s not the case in a central database.

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#2881

!) The way that Consensus determines the truth. Well, Consensus has several parties involved at the same time. All the decisions are being double checked and verified.

  1. So, Consensus removes trust because it verifies everything. Consensus holds everyone accountable because it verifies that all information is correct. A centralized database can be manipulated and changed or just have a human error.
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#2882
  1. Consensus determines the truth in blockchain by having a network of computers validating a transaction - when each computer on the network reach an agreement, it’s a consensus that the transaction can be added to the blockchain. Miners are incentivized to validate authentic transactions, so it eliminates the possibility of invalid transactions being added to the blockchain.
  2. The transactions on a centralized database can be manipulated, removed or modified which creates uncertainty on the authenticity of each transaction. If a company operates on a blockchain, they can entrust that the technology will only validate authentic transactions because the network is incentivized to do so.
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#2883
  1. Consensus determines the truth because to achieve consensus all computers on the blockchain must be in agreement about all transactions taking place on the blockchain. Provenance cannot work without concensus. The supply chain must be verifiable.
  2. Central databases are controlled by a central entity or authority and rely, to some degree on trust. Consensus is trustless. Consensus is built on top of incentives to be honest, to not fabricate fallacies.
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#2884

  1. Everybody needs to agree that a transaction is valid and confirm whether it is or not.

  2. For instance, if you are tracking where food came from, you need to know where and how the ingredients were made. If you can’t confirm from one of your sources that the food organic, quality, etc, then you cannot make the statement that it is organic, etc, and cannot sell products to people when they are trusting what you are saying about it being organic.

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#2885

What does it mean when we say that in blockchain, consensus determines the truth?
Because blockchain refers to a network of computers (nodes) each with its own copy of the ‘public ledger’, it is only when a transaction is agreed across the majority of nodes in the network which makes sense, then consensus is reached establishing the ‘truth’ and the transaction moves from the mempool and appended into the blockchain.

How is this different from how truth is determined in a central database?
In a central database, the owner /custodian of the database may decide to manipulate the data to change what appears to be the ‘truth’ as they have control over the input AND the output.

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#2886

  1. Because each computer in the blockchain network has to approve (verify) a transaction. And when all of them do and the trasaction is written into blockchain, we can be sure that something is valid (true).

  2. In central database there might be no incentives to tell the truth, therefore a lot of manufacturers cheat by telling lies about their product. And people who have no access to the central database might not be able to see what the manufacturer is truly doing. In blockchain ecosystem everyone is incentivized to provide truthful information, because it can be easily verified by anyone.

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#2887
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    The members(a group) decides if a transaction is correct or not. ( decentralized )
  2. How is this different from how truth is determined in a central database?
    In this case a single entity decides a transaction is correct or not. ( centralized )
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#2888

1 - it mean consuse determine the thruh by removing the trust .

2- On a central database the truth is not verified and On the blockchain truth is verified by consensus by the distributed ledger.

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#2889

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

In the blockchain the truth is determine by a network of individuals which are financial incentivised to follow the rules. This process generates a consensus in the network which validates the data in the blockchain.

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

In a central database there is always an authority (owner) which is responsible for the rules/truth. Even if there is a network of individuals who input data on the database, they always have to follow the rules of the authority but, even if they don’t, the authority can always remove or modify the data in the database.

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#2890

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    This means that all computers need to come to the same agreement. This is the truest form of democracy. :smiley: Consensus means that multiple computers agree on a transaction and they are incentivized to tell the truth.

  2. How is this different from how truth is determined in a central database?
    A central database does not need consensus to determine the truth. A central database in not incentivized to tell the truth, maybe it’s truth, but not THE truth.

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#2891

Yes, the network of individuals is important. No one has a bias to another network.

#2892
  1. In blockchain, the truth is only determined by everyone in the system agreeing on what happened.
  2. In a centralized database, the truth is only what someone or some company says it is and doesn’t require any outside agreement from anyone else.
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#2893

1.) What does it mean when we say that in blockchain, consensus determine the truth?
The truth is decided and agreed on collectively by the people
2.) How is this different from how truth is determined in a central database?
central database a single individual chooses what the truth is and can alter it if needed.

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