Consensus homework 1/14/21
Consensus is derived on a global scale, each independent node is financially incentivized to verify transaction blocks and remain honest when verifying transactions.
In a central database, truth is determined via a centralized database or entity, and thereby open to manual manipulation. Records can be altered.
What does it mean when we say that in blockchain, consensus determine the truth?
-The computers in the networkâthe ledgersâare in agreement about a transaction in the blockchain.
How is this different from how truth is determined in a central database?
-A central database requires trust. Consensus in a decentralized network allows for verification.
In blockchain consensus confirms the truth. Meaning, all the people on the network are in agreement of transactions on the chain. They are incentivized to find the truth.
In a central database there can be bias and trust issues. Not all the parties involved goals are aligned so manipulation can occur.
The network needs to verify and confirm the transactions and come to an agreement, this makes it impossible to submit invalid or fraudulent information. To make sure the information is properly verified and correct, incentives are being put in place.
In a central database we can only trust that the administrator is providing the correct information and this is not being manipulated. There is no need for anyone to approve the information provided as it is centralized. With Blockchain, if any node attempts to be fraudulent the transaction will be denied by Blockchain making it a trustless system.
What does it mean when we say that in blockchain, consensus determines the truth?
Everyone involved is incentivized to agree on each transaction, so there is no room for lying.
How is this different from how truth is determined in a central database?
In a central database, transactional details can be manipulated, hidden, or removed by the stronger authority involved.
What does it mean when we say that in blockchain, consensus determines the truth? Answer: Consensus is the mechanism through which truth is determined and approved of, by all the nodes aka decentralized computers that are part of the blockchain.
How is this different from how truth is determined in a central database? Answer: In a central database, itâs not equal. Itâs the central database that decides and approves of transactions. It holds all the right answers. While in blockchain, it is decentralized, all the computers have a copy of the Truth, through consensus, that is built on incentives. This makes blockchain more secure, as cheating becomes impossible.
this solves the age old problem of "how do I completely know you got my exact message and how do i know I got your exact response back "
2. How is this different from how truth is determined in a central database?
in a centralized database you have no outside sources of validation. false information could be made to look like consensus.
Hi!
What does it mean when we say that in blockchain, consensus determines the truth?
Because we can be sure that a decision or agreement was reached by several parties, meaning it is a decentralized decision. A decision made by consensus. And also, we can be sure that it is true because everyone involved in that agreement is financially incentivized to tell the truth.
How is this different from how truth is determined in a central database?
A central database does not need consensus. Doesnât need to take into consideration other partiesâ opinion or input. That decision can be corrupted, false. They simply can cheat.
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Any new transaction added in the network, all nodes have to agree and validate trough consensus â removes trust achieved through financial incentives.
A centralised database belongs to a central authority, and the truth is determined by the owner, who can manipulate, edit, add, erase, remove, etc.
Thru blockchain, we can achieve consensus by verifying the data from every computer/participant that is connected to the blockchain. The participants are incentivized by the blockchain, to tell the truth.
If the data is true then it gets added to the ledger. If the data is false, then it gets discarded.
The truth is determined in a central database by an individual or the group that owns the database.
They can always manipulate the data to their advantage.
In a distributed environment, each network participant has only one voice, so to speak, regarding the data that should be included in the network and each voice is subject to the scrutiny of others. In this regard, consensus ensures that bad actors who attempt to submit inaccurate data to the network are caught out by the rest of the network based on the principle that the bulk of the network is operating for their own incentives. In blockchain, these incentives revolve around enforcing the truth.
Truth in a central database is really implemented as one actorâs opinion of the truth that is enforced. In this regard, the incentive structure is corrupted as an actor may act in a way that benefits themselves at the cost of other network participants or data consumers without recourse.
Homework - Consensus
1. What does it mean when we say that in blockchain, consensus determines the truth?
All networks need to agree on what is true, when something doesn't make sense, the transaction will not go through
2. How is this different from how truth is determined in a central database?
In a centralized database, the central authority determines what is true or notWhat does it mean when we say that in blockchain, consensus determines the truth?
Answer: The transaction has to be verified by the nodes on the public ledger and all the participant are incentives to tell the truth otherwise they will lose money. If everbody are saying that this transaction is false, it will not be included in the blockchain.
How is this different from how truth is determined in a central database?
Answer: In a central database there is only one player who determines wether its true oder not and the data could easily be manipulated.
In blockchain systems, truth (i.e. a transaction) is verified through many decentralized entities in the network.
For example, VISA is a central database that determines the validity of a transaction. Billions of dollars in fees go towards accomplishing this feat. Blockchain eliminates the need of a central authority to verify a transaction by letting the entire network automatically verify the transaction instead of a singular gatekeeper determining it.
What does it mean when we say that in blockchain, consensus determines the truth?
Nobody at any given time would be able to lie about certain aspects of their involvement with the blockchain since everything added is accounted for in a permanent state.
How is this different from how truth is determined in a central database?
As a consumer, the only information that is given about any product that you may use is only confirmed by the company. The companies truth could be that they are what they say that they are, although practices leading up to completion may differ because the public doesnât have all of the information available to them.
Consensus in blockchain are all the nodes in the same ledger verify truth within the ledger. In this case we mean verifying transactions and data within the blockchain.
Decentralized control by all the nodes makes it almost impossible to corrupt data within the blockchain. If you have access to a certain centralized database it is way easier to manipulate without the use of nodes and consensus.