Homework on Consensus - Questions

Blockchain and Bitcoin 101
#3435

What does it mean when we say that in blockchain, consensus determine the truth?
In blockchain, consensus determines the truth because a majority of players have verified the or approved decisions and information. When all players are connected and informed of everything that happens, it makes it harder to align any interest other than ethical ones due to incentives.

How is this different from how truth is determined in a central database?
In a central database, on the other hand, truth is determined by an authority or a small group. Incentives can easily become less ethical.

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#3436

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    a. Consensus determines the truth in blockchain because of network of computers have all came to an agreement on a specfic transaction; the transaction is not posted to the public ledger until it receives network approval.

  2. How is this different from how truth is determined in a central database?
    a. Central database determines truth based on one person who controls the database–or a group of people. People can be corrupted and manipulated into reporting a lie as truth–a network of computers cannot.

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#3437

  1. In blockchain, consensus determines the truth because each individual node checks with all other nodes to reach consensus in order to agree that a transaction is valid. If all nodes agree that it is valid, it gets added to the network. This incentivises all actors to tell the truth as every node is communicating with each other to create a trustless network.

  2. Because a centralised database is determined by a single consensus. It isn’t being verified as rigourously as a blockchain.

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#3438

  1. Trust is removed so that every transaction gets checked no matter what.

  2. Database data can be lost stolen corrupted manipulated in one central location.

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#3439

What does it mean when we say that in blockchain, consensus determine the truth?
In blockchain there must be majority of multiple parties agreeing on a new entry, that will confirm the data entry into blockchain.

How is this different from how truth is determined in a central database?
In a standard database, any database user with read/write rights can alter the data and set the new “truth”.

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#3440

  1. Consensus is a shared version of the truth, or some truth. Since individuals or organizations might not agree on what this “truth” is, these different parties can agree on an authority to provide them the truth. In BC this is made possible though consensus mecanisms.

  2. In BC the consensus is reached though a shared mecanism.

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#3441

Homework on Consensus - Questions

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

All the nodes in the blockchain need to agree on a consensus on the status of the ledger. A consensus removes trust and is achieved through financial incentives

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

In a central database the truth is controlled by an administrator. The data is not being verified and can be easily manipulated.

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#3442

  1. All computers on the blockchain have to agree on whether or not a transaction is legitimate before it can be verified and added to the database.

  2. In a central database, the truth is decided by whoever controls it and can be easily altered.

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#3443

Consensus determining the truth means that a network of computers Hass to validate the truth of some of that before the event can be considered valid.

This is different from centralized systems in that our trust must be placed in the centralized system and the people behind it when there is no consensus from other parties.

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#3444

  1. consensus is the correct truth determined by economic incentives.

  2. Central databases can be manipulated by individuals or a group acting in there own interests.

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#3445

  1. Conscensus determines the truth through verification of all steps of the supply network or financial transactions. It determines the truth by allowing everyone to agree on a lack of trust and having full transparency.

  2. It is different becuase it is public information and must be verified by all parties in the supply network. Also the blockchain has many ledgers to verify each step.

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#3446
  1. Blockchain determines truth or accuracy through consensus because all of the network is consulted and information is only added to the blockchain once all of the network have agreed that it is correct and accurate.
  2. In a central database the information must be verified by the central authority, permission must be given by the central authority.
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#3447
  1. What does it mean when we say that in blockchain, consensus determine the truth? Many nodes have to come together to make a decision on wether or not a transaction is going to pass or not. Doing that makes it very hard to cheat the system.
  2. How is this different from how truth is determined in a central database? There is no central management, it is trust less, compared to a database that is centralized and has controlled authority.
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#3448

  1. The public blockchain works due to the fact that all node operators agree on the state of the ledger. This consensus is reached because of incentives forcing nodes to operate truthfully or else their economic loss would be much higher than by following the rules. Consensus determines truth in the sense that nodes agree on the state of the ledger and this agreed ledger resembles the true state of the database.

  2. In a central database the central institution with authority over the database determines the state of the ledger, therefore having the authority to hypothetically change the state of the ledger as it suits them.

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#3449

Homework on Consensus - Answers;

  1. Digital verification across multiple nodes on a decentralized global network that only enables unidirectional inputs and only once, makes the requirement for Trust between vender and customer irrelevant. It is a completely Objective process
  2. Central data bases involve third party Influence making it a subjective process requiring and relying on Trust between vendor and customer
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#3450

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

  • There is no central authority deciding on the truth - the network as a whole will do that instead. All the participants in the network should independently arrive at the same state (the same “truth”).

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

  • In centralized DBs, the truth is determined by the owner or operator of the DB. It is usually only one person or company, and there is therefore only one source of truth, which has to be trusted. The consensus in the blockchain is trustless, on the other hand.
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#3451
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus determines truth means that for an item to be accepted as true in the blockchain several parties have to confirm/agree to its veracity. If several parties do not agree that a item is true it is not accepted as true in the blockchain
  2. How is this different from how truth is determined in a central database?
    Truth in central databases does not have to be confirmed by several parties, this differs from the blockchain.
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#3452

1.A. The consensus network, all have a version of the true blockchain protocol and decide or vote on that record as being the truth with a financial cost or reward as a motivator.
2.A. In a centralised database only one entity needs to decide what is true and all others need to trust that this is the case.

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#3453

Blockchains are networks of computers that can reach consensus without a central authority. Consensus is the critical aspect in decentralization. Only by verifying the data by everyone (and encouraging them to do it) you can rely in that the state of the blockchain is true.

Consensus in a central database is determined by a central authority. You have to trust in that authority/person/entity always.

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#3454

1 - it means that each transaction is validated by a majority vote.
2 - theres no built-in validation process. Its access based.

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