Homework on Consensus - Questions

Blockchain and Bitcoin 101
#3355

  1. It means the truth is decided and agreed on collectively buy the people.

  2. In a central database the person or people behind the database can manipulate or change the database.

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#3356

  1. It means that all decisions are taken together and are therefore checked several times. The consent of the blockchain network removes trust and provides also an economic incentive to work towards the truthfulness of transactions.

  2. in a centralised system truthfulness is based on trust and not on verification and because being a central authority it can decide as it sees fit without the control of an external supervisory body.

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#3357

  1. All parties play by the rules to earn incentives by coming into an agreement on decisions made in a trustless system. Everything is verified and allows confident in the truth.

  2. A centralized database depends on trust. It is determined by one person or company, there is no verification by others.

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#3358
  1. It checks that everyone play by be the same rules.
  2. by everyone checking everyone.

Quote of the post

“If you are going through hell, keep going”

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#3359

1. What does it mean when we say that in blockchain, consensus determine the truth?
All participants nodes needs to verified, agree that the transaction can occur. ‘Does the user has enough funds to be able to send this quantity?” If it does and all network verifies is true, consensus is approved, agreed.

2. How is this different from how truth is determined in a central database?
Don’t trust, verify. In a central database transactions can be modified and there is no concesus within the participants, verification is no needed, there is manipulation which can lead to corruption.

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#3360

Consensus is agreement among all in the network. Thus keeping everything 100% accurate. It is different from the central databases because there it is only decided by one or little.

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#3361

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Each entity had an incentive to tell the truth. So as the blockchain compiles the data, it begins to develop a story. Each entities data adds an element to the story. In addition, all have to agree on the story, or risk being called out by another entity who has an incentive to do so in order to protect themselves and their assets.

  2. How is this different from how truth is determined in a central database?
    central databases can change what they may and there is no oversight. In the example that Ivan used, we would know nothing more than what they told us. Unless, we somehow were able to do the physical research ourselves.

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#3362

  1. It means that decisions are made from the network incentivizing to find the truth. The consensus decides which blockchain will continue to be used to add blocks on it.

  2. Truth is determined by central authorities for central databases, on the other hand, blockchain is determined by consensus, where the different nodes of the network need to agree whether a transaction is valid or not.

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#3363

Blockchain consensus determines the truth by verifying with all parties involved in the process or transaction. This is different than a normal database that only shows one or two pieces of the process at a time.

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#3364
  1. It removes trust from transactions by verifying the nitty gritty of every transaction collaboratively, yet independently across different nodes to ensure that only genuine transactions are accepted. It is achieved through incentives to do the right thing.

2.The difference lies in the fact that blockchain is decentralized while central database is centralized and can be altered.

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#3365

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Answer: Concensus determines the truth because a network of computers(nodes) all agree on what is true/untrue.

  2. How is this different from how truth is determined in a central database?
    Answer: The nature of a central database(centralised!) means that the truth is determined by one central authority or individual/s.

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#3366

  1. In a blockchain, consensus determines the truth because there is agreement between the nodes in a decentralised network, about whether new data is valid or not, allowing for open verification of what is true.

  2. This differs from the situation in a central database because no single authority can determine what is recorded in the database. This eliminates the need to trust a central controlling entity.

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#3367
  1. What does it mean when we say that in blockchain, consensus determines the truth?
  • Because a blockchain is trustless no “trust” is needed, only verification. This means that you don’t have to trust a company, you can verify what they’re saying. Because consensus is built on incentives companies will most of the time tell the truth because if they lie, in a blockchain we can verify this to see if it’s true or false. In blockchain there is already a consensus of what is true, so if someone tries to add false data it will be ignored and not be added.
  1. How is this different from how truth is determined in a central database?
  • This differs because in a decentralized database (blockchain) they’re not simply one owner as it is in a centralized database. In a centralized database the owner of that database can simply decide what’s “true”, as in a decentralized database, not one person can decide on their own what is the “truth”.
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#3368
  1. Because in blockchain all nodes verifies transactions, and if all nodes verifies, than consensus is reached and its truth.
  2. In a central database you need to trust one central authority.
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#3369

1: consensus is a group of people agreeing what is truth not just one.

2: in a central database the truth is determined by one or a very small group of people

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#3370

  1. Consensus determining the truth, in the context of blockchain, requires each of the nodes in the network to review, validate and accept newly acquired data, before it can be added to the blockchain.

  2. In a central database, truth is mainly determined by trust. This means that businesses will have to rely on each other’s verbal or written contracts. There are few methods to determine the validity of these contracts, and therefore fraud can occur much more easily. Through blockchain consensus, the network of nodes are able to determine whether or not these contracts have been successfully completed, in a more efficient and reliable manner.

Any feedback/comments/corrections is appreciated! :grin:

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#3371
  1. every node in the blockchain has to agree
  2. database owner can corrupt data
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#3372

  • What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus in blockchain means that different computers and nodes are in general agreement of the fact that a new record in the ledger is valid or invalid.

  • How is this different from how truth is determined in a central database?
    A central database is only being verified by a single computer/entity. With no other validators, you would need to TRUST that central entity that is claiming that his record is valid or invalid.

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#3373

  1. The Blockchain is network of computers and at any given moment it is agreed on current state of entire block chain data, that is the history of all transactions. So if there is a new transaction that needs to be added on the block chain, it is verified by consensus of all node computers and stored as new piece of history on block chain. If there is any erroneous claims or transactions not all the computers on blockchain will agree. For example if person A try to send 1000 coins to B despite he has only 5 coins assigned to him on block chain network, the transaction will fail as the local copy of block chain ledger at each node won’t agree that person A has sufficient coins in his account.

  2. In central database the new and old transactions are verified by comparing the existing data. To make fail safe often it is replicated in to multiple copies.

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#3374
  1. It means that the only agents of truth in a transaction are the nodes running the network, and if those nodes reach consensus then it the truth is established and adopted.

2.It differs from the fact that the truth isn’t determined by one entity or a few, instead it is checked and established many participants in the network.

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