Homework on Consensus - Questions

Blockchain and Bitcoin 101
#3595

Homework on Consensus - Questions

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

All computers (nodes on the bitcoin network) have a copy of the public ledger & need to agree the transaction onto the blockchain (ledger) = consensus.

Decentralised = Trustlessness : a decision has been made together / double checked / all decisions are made by consensus.

Consensus removes trust.

Don’t Trust - Verify

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

A central database is controlled by a central authority who controls what is put in or out - you have to trust that authority.

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#3596
  1. It means that a large network of computer are verifying what’s factual and false. Each computer is making sure to be truthful, because consensus works through financial incentives.
  2. Basically in a central databases sometimes if not most of the time. some people or organizations get incentives due to false conducts such as corruption and so forth. whereas the main purpose of a decentralized database, is to remove trust by automatically being truthful.
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#3597

  1. This means that all computers on the network verify transactions against their copies of the ledger and as a group determine if the transaction is truthful or not. Once it is agreed that the transaction is truthful it is added to the blockchain.

  2. In a central database the truth is determined by the entity that controls the database. A central database can have data deleted, edited or manipulated. This puts trust into the entity to do the right thing.

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#3598
  1. the truth needs the whole network of direct, indirect, sub and side-contracts, to match up with each other
  2. the truth only has to match up to one master source.
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#3599

  1. It means that every transaction is checked and verified by every computer that operates with a copy if the ledger, on this way, verifying and making all the decisions together is called consensus. There is a financial incentive for each party simply for saying the truth.

  2. Central database is determined by private parties or organizations and everyone else just have to trust that is 100% truthful.

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#3600

  1. Consensus determines truth due to that there are many different computers with the same ledger that independently verify the transaction, so although it may be possible that a fraudulent transaction can be initiated and perhaps verified on one node or more, the majority of nodes will still show the transaction as not valid and would be prevented through having to achieve consensus. It would be very difficult/impossible to complete some type of fraudulent transaction without control of the majority of nodes.

  2. This is different from truth being determined in a central database, as by definition a central database would only consist of a single copy, and would be vulnerable to fraud.

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#3601

Blockchain consensus determines truth by removing trust because many nodes of a network need to agreed on a transaction and are given incentives to tell the truth.

A centralized database relies on trust and not verification from multiple parties.

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#3602

  1. In a blockchain transactions must be validated by multiple parties. For example if someone tries to send bitcoin they dont posess it will be rejected by all the miners who will be able to see that the bitcoin you are trying to send does not exist on the blockchain

  2. An insurance adjuster can decide the fate of whether your claim is approved or rejected

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#3603

1.Consensus determines the truth agreed by the community, which is rewarded by economic incentives.
2.Usually in a central database the truth is dictated by the person or the group in charge of it.

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#3604
  1. What does it mean when we say that in blockchain, consensus determines the truth?

Instead of accepting every transaction into the database immediately when it is done, the transaction is validated by multiple nodes in the network. This means that in order for a transaction to be registered, multiple nodes need to agree on the validity of the transaction and accompanying funds.

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

Similar to answers before. A central database trusts parties based on authentication provided by a central authority. If you have the rights/privileges you are trusted to whatever it is that these rights/privileges allow you to do. Almost never are there third-party validations involved.

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#3605

Consensus determines the truth by a group that verifies that the claims made are true

In a central data base the truth is claimed by trust

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#3606

  1. It means that all computers in network decide together if something make sense.

  2. the diffrence is that blockchain network is decentralized, and more compoters decide if this transaction make sense - no one can cheate.

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#3607
  1. What does it mean when we say that in blockchain, consensus determine the truth?
  2. How is this different from how truth is determined in a central database?

  1. Consensus is the unanimous agreement between all parties regarding an issue. this is achieved on blockchain if a transaction is approved by the community who are custodians of the ledger. If it is found to be false then an erroneous transaction is discarded. consensus therefore protects the legitimacy of the blockchain.

  2. In a centralised database a central authority in charge of the databases records decides independently whether a transaction or alteration is authentic. Consensus with the community requires people who hold a copy of the ledger to individually authenticate an addition to the database to be authentic. Therefore the power is distributed.

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#3608

  1. When a transaction comes through, the different nodes need to agree whether it should be included into the blockchain or not. These decisions are made together on a decentralized network by multiple parties thus reaching consensus and verifying the truth. Decision makers are incentivized to be truthful.

  2. On a central database and single entity or authority can determine the truth. This control can be corrupted thus corrupting the truth. The decisions are also difficult or impossible to be independently audited.

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#3609
  1. Consensus determines truth because it is verified by everyone in the network.
  2. In a central database, the data is at the mercy of the central authority.
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#3610

When we talk about consensus, we talk about the truth on the transaction. All have to agree if the transaction is true, as they all have a copy of the blockchain ledger to determinate it. All decisions are in a consesus.

In a central data base the truth can be alterated. Because it can come from a central source wich can have the hability to change it.

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#3611

  1. It means through a decentralized acknowledgment and verification, the truth is valid.

  2. A central database is determined by an entity or group of entities. In a decentralized setting, or Blockchain, it is verified through an extensive amount of other “computers” to verify the truth of something or a transaction.

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#3612

  1. Consensus mean a general agreement about something, an idea or opinion that is shared by all the people in a group. In blockchain consensus determine the truth by members of the network verifying a transaction and having it in the network makes it difficult to cheat the system. E.g. in a supply chain where other members of that supply chain can verify the accuracy or authenticity of a claim made on that chain. This creates a trustless network where the TRUTH can be easy established.

  2. central database = TRUST

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#3613

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    All computers on the node must agree for a transaction to be confirmed and not discarded. All decisions are made collectively and must be agreed on by the collective to determine if a transaction is valid or not.

  2. How is this different from how truth is determined in a central database?
    In a centralized database, the truth is determined by an individual or a hierarchy. Trust is subjective and based on the character and motives of the governing authority.

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#3614

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Truth is achieved because all participants come to a consensus (an agreement) on a transaction, process etc.

  2. How is this different from how truth is determined in a central database?
    Truth can be “manufactured” in a centralized DB. No consensus if only one party.

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