Homework on Consensus - Questions

Blockchain and Bitcoin 101
#3755

Consensus determines truth means the every ledger within the network must agree on each each transaction in order for it to be accepted as truth.

Truth is not determined in a central database, central databases rely on trust.

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#3756
  1. What does it mean when we say that in blockchain, consensus determine the truth?

answer: Consensus - Trustless – decisions can be double checked, removing trust achieved through incentives decisions are made collectively, decentralized network

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

Traditional/Central database where the data and information is controlled by 1x single place, no verification.
easier to be altered, hacked, corrupted.

answer:

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#3757
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Consensus means that all parties are in agreement. In blockchain, the parties in agreement would be the nodes. Nodes are financially incentivized to verify the information. This decentralizes the verification of data so that one central source does not have control of the data.

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

Truth is determined through the central source by the gatekeeper(s) of the database. There is no way to verify in a Trust-Less manner whether or not the data is true to its origins or manipulated.

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#3758
  1. it is the verification from all the different nodes in the network.
  2. in a central database one autority decides the truth and can easily be manipulated
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#3759

  1. What is meant by consensus determines the truth is that all actors participating in the blockchain hold a copy of the ledger and work together to agree on which transactions are legitimate. Said actors also have monetary incentive to keep the incoming transactions legitimate.

  2. Truth in central databases is determined by trust between all parties, and can either not represent the majority or present false information as there is no majority consensus to verify claims.

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#3760

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

Every transaction gets verified by several parties in a decentralized database. Those parties need to achieve mathematical consensus for the transaction to be validated, efficiently eliminating the need for trust.

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

In a central database, there may be only one individual or entity that verifies transactions, which leaves room for error and/or manipulation.

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#3761

  1. What does it mean when we say that in blockchain, consensus determines the truth? - When a decision is made in blockchain there are many parties involved, all decisions are made together and agreement must be reached within the network. The truth then, is determined by verification and agreed upon by the network as a whole.

  2. How is this different from how truth is determined in a central database? - A central database is authoritative, data can be added or removed by said authority. Agreement is not globally agreed upon.

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#3762

1- An agreement needs to be met between all parties (network), where true or false are decided and because of the incentives $ fueling the network, the truth will always be the most optimal path.

2- A central database holds the key to the castle impeding outside confirmation, further proofing, and validation that a decentralized database/blockchain can achieve.

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#3763
  1. What does it mean when we say that in blockchain, consensus determines the truth?

The network needs consensus so verify the available funds exist which removes the need for trust. The data either exists or it does not and if the network is in complete agreement or has a consensus that will determine if the transaction can be added to the ledger or “trusted”.

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

In a central DB one has to blindly trust the private enterprise to not manipulate the DB for there own benefit. Putting profit before trust and integrity.

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#3764
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    Decided by a network.
  2. How is this different from how truth is determined in a central database?
    Decided by one authority.
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#3765

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means that the whole network agrees that a transaction is legitimate and accepted. Where a transaction is deemed illegitimate it will be rejected. This works by incentivising the various points of the network with money, in order to achieve an honest outcome.

  2. How is this different from how truth is determined in a central database?
    A central database relies on an entity to manually determine if a transaction is legitimate. This can leave it open to fraud and relies completely on trust which can lead to dishonesty etc. The best incentive isn’t always to be honest.

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#3766
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    A transaction can only be added to the blockchain when the nodes in the network agree (reach consensus) that a transaction is valid and can be added to the block chain. Hereby removing trust. Once it has been added, it is considered the truth.
  2. How is this different from how truth is determined in a central database?
    There’s no consensus among all users necessary to add or alter data in a central database. In this case, the truth is determined by the party adding or altering the data. The so called ‘truth’ is whatever you find in the central database on any given time.
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#3767
  1. Everyone agrees and so it’s hard to cheat since everyone is talking to everyone.
  2. In a centralized database, there is usually one party who has authority. Not with a block chain where the database is distributed among several parties.
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#3768

  1. In a blockchain; consensus, or what most nodes agree upon, is taken to be the truth

  2. In a central database, truth is determined by trusting that all parties involved are telling the truth as opposed to a trustless system on the blockchain.

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#3769

  1. Because of the transparency and that all part of the network has a copy of the ledger all the decision are dubble checked. If one part would claim one thing and its not true, the network would know and stop that transaction. The reason why the network are working towards the “truth” is because the incentives. If you are verifying a true transaction you are rewarded with money (tokens i think).

  2. In a central database you would have to have a middlemen that authorised the transactions and those companies can be corrupt or in other ways tamper with the truth.

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#3770

  1. truth is determined by all network participants

  2. truth is decided by a central authority

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#3771
  1. Because every transaction has to be checked and veryfied by nodes (network). If they agree transaction is added to the blockchain. If they dont agree (maybe they dont have anough funds) transaction does`t get approved. Also is build on incentive, so they tell the truth.
  2. Because centralised detabase can be manipulated. You don`t need so many people to agree on decision, but from the one who control it.
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#3772

  1. in order to transaction to be added to blockchain multiple parties need to agree whether it is true and therefore reach consensus

  2. In central database only governing body decides whether something is or isnt true, not the users collectively

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#3773
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    In a decentralized environment like blockchain, decisions are made by all computers in the network together in a consensus. It is a group decision. The truth is verified by all computers/parties in the network, jointly. There is no central “decision” authority, which determines the truth. Because of the global decision it is impossible to cheat. We believe it is the truth not because an entity says so, but because it can and is verified.
  2. How is this different from how truth is determined in a central database?
    In a central database a specific authority determines the “truth”, which you can/must trust.In blockchain it is impossible to cheat, the truth is only the truth because of the fact it can be verified. You earn money by being honest.
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#3774

  1. In a Blockchain, data or funds, cannot just appear out of nothing, so every coin in a wallet was created at some point. And when someone tries to send a transaction, he is required to have sufficient funds. If the wallet doesn’t have sufficient funds, the transaction will be declient. The Nodes in a network have the whole blockchain copy, and know if a wallet has sufficient funds, if a certain amount of nodes agree that the transaction is valid, it’s written in the blockchain and becomes “the truth”

  2. In usual databases you always have an administrator and other people who might have rights to update the datebase. If one actor, with sufficient rights, makes a change in a database, it’s valid and the previous data is deleted.

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