Homework on Consensus - Questions

Blockchain and Bitcoin 101
#3054

  1. It means that multiple entities have agreed that it is the truth and are financially incentivized to make sure it is the truth.

  2. In a centralized system the one in power has the authority to put what ever he feels the truth is into the data base.

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#3055

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus is achieved when parties (nodes) verifying the transactions and and when enough verifications are there there is an agreement that it can be part of a block and thereafter can be added in the chain. One verification is one block usually after 3 confirmations the transactions become permanent.

  2. How is this different from how truth is determined in a central database?
    all parties (nodes) need to have the same database which is verifiable. Central databases don’t keep a database (ledger) per node, but have just one database.

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#3056

Consensus (Widespread agreement among group members)
When you have a cryptocurrency such as bitcoin, is run on a network of computers that all have a copy of the blockchain. When a new transaction is presented they all need to agree on whether they should include the transaction on the blockchain or not. If and when the transaction is put onto the blockchain it is being accepted by the network into the ledger, at which point is confirmed.
All decisions are made by group consensus not by an idividualmaking the system trustless.

In a central database the decisions are made by an individual or single entity not by a group.

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#3057

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

With collaborative nodes ,incentive,validation,multiple decision and maintenance of the network is achieve the consensusand the

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

It is trust-less and decentralised.

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#3058

  1. Consensus determines the truth because it’s based on incentives, namely giving people money, the prize of playing by the rules and behaving in an “honest way”. It doesn’t matter if a person is honest or dishonest, personal characteristics, because this system is not based on trust.

  2. The truth can be determined in a central databse insofar as it’s possible to trust an authority that can always intervene and decide the rules to be played. Participants are less incentivized to behave in an honest way and could easily try to exploit the possibility to cheat for their personal advantage, bypassing the authority.

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#3059

1 - In blockchain, we have a network that give us 100% level of certainty and we can verify the facts.

2 - Facts is the key, and in a centralized database we cant verify the “real” truth, the sources.

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#3060

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    In consensus, multiple people within the network validate information and must agree collectively what is deem as the truth.

  2. How is this different from how truth is determined in a central database?
    In a central database, any person who controls the network can manipulate the data and conceal the truth.

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#3061
  1. It is decided by a collectively by the people who agrees or don’t the movement.
  2. It has a central authority who decides the truth.
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#3062

  1. To say consensus determines truth in blockchain means that a network will back check each other leading to an incentive to tell the truth and making it hard to cheat or lie in the network.

  2. This is different from how truth is determined in a central database because in a central database one company or individual could choose what is truth without ever being able to be audited or verified.

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#3063
  1. What does it mean when we say that in blockchain, consensus determine the truth?

A network of computers is used to verify every transaction on the blockchain.

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

A central database can easily be manipulated bye the authority of the database, while the bockchain is trustless and decentralised.

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#3064

  1. It is meaning that all nodes or parties need to agree on the certain transaction for it to be verified or trusted.

  2. In central data bases there is no verification of that trust, no certainty that the person telling you they use a special good is in fact using anything special at all. You basically have to trust that business or party for there word that they use that. In decentralized data based, block chain the parties all come to consensus or agreement that they are actually using or having what they claim they do. Achieving this through incentives to have parties benefit from telling the truth and keeping the transactions accurate and removing the need for trust. Becoming a trust free and accurate chain on transactions.

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#3065

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Because consensus is based on decentralization - multiple sides. Multiple parts of the blockchain can agree what is truth and what is false.

  2. How is this different from how truth is determined in a central database?
    Truth determined in central databse can be based only on 1 person, which is not objective and can be taken an advantage of.

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#3066

1.Many nodes must come to the same conclusion that a transaction is valid or invalid. Only valid transactions are put in the ledger. There are monetary incentives for this consensus to happen.
This consensus is trustless.

  1. A central data base must be validated thru auditing and this involves trust of the auditors
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#3067
  1. Other decentralize parties re affirms the truth or verifies the truth, and therefor it’s hard for anyone party to alter the truth.
  2. Centralized database is based on the sole trust of that one centralized authority, which is susceptible to alteration, manipulation, etc. Whereas decentralized consensus amongst 3rd parties confirms the truth.
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#3068

  1. Consensus determines the truth as when a consensus of people within the network agrees that a transaction is legitimate, then it is processed. This is incentivized to ensure that people tell the truth.

  2. In a central database the truth can be manipulated as people may have their own personal incentive or agenda to lie about the data being passed through. With the blockchain, it is built so the truth is rewarded and therefore it is very unlikely people will lie

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#3069

What does it mean when we say that in blockchain, consensus determine the truth?
This means that all computers that are part of the blockchain ledger must agree
if the transaction is authetic or not

How is this different from how truth is determined in a central database?
A central database will just record a transaction or update records based on
information it receives. However, with blockchain, the transaction has do be
verified, therefore it is a zero trust mechanism

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#3070
  1. Truth and honesty is incentivized by giving value to the people that don´t cheat the system and also can be verified by other nodes.
  2. In a centralized scheme the company that owns the database is the one that can arbitrarily define what the truth is.
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#3071
  1. Consensus determines the truth simply means that their is a majority agreed upon path by all participants in the network.
  2. Central database is usually governed by a small group or sometimes one individual thus creates a concentrated failure point, more contributors means a better distribution of the network which leads to a more complicated nest of information driven hornets that work together to verify database entries.
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#3072
  1. What does it mean when we say that in blockchain, consensus determine the truth?

The network consensus verify the truth through incentives to be honest about transactions. As several nodes verify any transaction, truth is established.

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

Again, a database is likely monitored and governed from only one (or a few) stakeholder (centrilized) which might be incentified by other interest than what a broad network would consider as truth.

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#3073

[quote=“ivan, post:1, topic:8425, full:true”]
Homework on Consensus

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

Consensus determines the truth because in order for a transaction to be confirmed on a blockchain there must be consensus between multiple validator nodes that the transaction is valid. In order to maintain validity and transparency on the blockchain these nodes are financially incentivised to be honest through block rewards.

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

This is different from how truth is determined in a central database because numerous validators running from around the world must reach a consensus to honestly verify a transaction and are financially motivated to do so through block rewards while a central database’s truth is determined by the single entity running the database.

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