Homework on Consensus - Questions

Blockchain and Bitcoin 101
#3395

Homework on Consensus – Questions

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

Only consensus determines the truth because all transactions on the blockchain are independently verified by many different computers in a decentralised network which each have, at all times, an updated copy of the public ledger. All participants in the network are financially incentivised to play by the rules and provide accurate information so it is impossible to cheat.

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

In a central database the truth is determined by the administrator of that database who, at any time, can change, add, or delete information. Therefore users of that database have to trust the administrator of that central database and therefore the information cannot be trusted to be accurate because it has not been verified by many independent parties.

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#3396

  1. Truth is determined by multiple independent actors, who all must agree in order for truth to be determined. It is not necessary to trust any one entity in the system.

  2. In a central database whomever owns/controls the database must be trusted because they hold the single copy of the data.

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#3397

1… what does it mean when we say that in blockchain, consensus determine the truth? It means that all the computers in the network unanimously agree with the data. You don’t have to rely on trust, all the data is verifiable by the network.

  1. How is this different from how truth is determined in a central database? With the central data base there is no network to perform cross-checking of the data, so data verification is non-existence. And without the network you cannot form a consensus.
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#3398
  1. A Node can stay with the other Nodes in one chain as long as it is honest and in consensus with the others.
  2. The central party decides what is right and what is wrong
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#3399
  • What does it mean when we say that in blockchain, consensus determine the truth? Because the data is verified by different parties independently from each other, it is objective rather than subjective
  • How is this different from how truth is determined in a central database? Consensus is based on quantitative variables (they’re exact facts such mathematics, incentives) rather than qualitative (emotions, faith on what’s being said or written in the database)
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#3400

  1. in blockchain, consensus determines the truth by removing trust through verification through out the network

  2. in a decentralized database it is backed by verified information through the network , in a central database truth is determined by a central user or authority

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#3401

Q1. All decision is being made together & double check by reaching agreements amongs all Nodes.

Q2. A central database is centralized and can be manipulated anytime.Thats why incentives play a big role it seperates and removes whats not suppose to be in the blockchain by talking amongs one another.

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#3402

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

  1. It is an agreed upon truth based on the fact that all elements in the process can be traced, verified and are then validated by all parties on the network.

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

  1. A central database does not permit access to all the transactions necessary to verify the origin of elements needed in the process. Database owners can modify data, there authority is all that is needed for approval, thus solely based on trust.
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#3403

1- Through consensus there is an incentive to make money, that is to say, different parties “supply network”, agree to a transaction in the blockchain. This decision through consensus determine the truth.

2- In a central database, the data is not public and it hasn’t been a clear consensus, so truth has not incentive

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#3404

Consensus is achieved between all of the nodes in the network rather than just one. They are incentivized to act honestly, and they therefore decide which version of the blockchain is to be continued to use.

In a central database the owner or administrator is able to decide the truth. Therefore trust in this party is required and it is not trustless.

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#3405

  1. All nodes on the network must verify and agree on every transaction. This illuminates the need for trust in a single entity.

  2. Truth is determined by a single authority in secret, which cannot be audited or verified except through long, exhaustive, expensive processes.

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#3406

1, In blockchain. consensus is a big part to play. No one is a leader in blockchain so for this gap consensus bring solution and determine the truth. In the network PC they all need to agree what is true or false and all the decision double cheeked to play by the rule.

2, The value of the transaction in central database can be modify by central administration.

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#3407
  • What does it mean when we say that in blockchain, consensus determine the truth?

Consensus in a network, is what gives an incentive to not cheat the system because authenticity must be verified. The distributed ledgers are what helps to verify the truth so no cheating will be incentivized or worth doing as it will be rejected.

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

Truth is determined by a central authority or top management, this is what validates data before completion. There is no way to verify 100% of the information is accurate.

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#3408
  1. a transaction must be validated by many nodes/computers. providing good information is incentivized, providing bad information is not rewarded. the transaction is only “true” and validated if all nodes/computers agree.
  2. with a central database, there is a central authority who will decide what is true based on the information made available to them (which can be false)
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#3409
  1. In blockchain everyone is incentivized to tell the truth. As such the consensus that the blockchain comes to determines what is true.
  2. This differs from as central datasbase in the sense that no 1 blockchain can determine alone what the truth is. All databases in a decentralized blockchain must agree on a truth.
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#3410

  1. All decisions are being double checked . When the new transactions comes all the ledgers check if the transactions is valid .

  2. This network is trustless and there is no middle man or institution that can be involved.

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#3411

Because all decisions are made together. Several parts are deciding if a transaction is true and if they should include in the blockchain network. Consensus is achieve through INCENTIVE.

In a central database, validation of information is determined by central authority. They declare something as true and all you have to do is trust. However, Consensus and the blockchain network come to an agreement when there is a transaction and decide if it’s true or false.

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#3412
  1. What does it mean when we say that in blockchain, consensus determine the truth?

When every node in the blockchain approved an transaction they reached an consensus, this means the transaction is true. To ensure that the nodes only verify correct transactions, they are getting an incentive for doing so.

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

In a central database the third party who runs the database is the one who says what is true and what is false. The users need to trust the third party that they will work in their best interest and will handle data correctly.

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#3413

It means records on separate sources on the network must agree to make a transaction valid.

In a central database, the network is small and centrally controlled so it is subject to change.

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#3414
  1. In consensus, anyone with a decent internet connection can participate in determining the truth. No single player has more power than another. This large sample size of truth determaniers forms consensus. In addition to sheer quantity, decision makers are incentivised to tell the truth.
  2. In a central database, one source has all the power. There is also very little to no transparency in a single database set up. Due to having one source with all the power, they can independently alter data.
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