Homework on Consensus - Questions

Blockchain and Bitcoin 101
#362

There is a network of computers holding the common ledger. All have to agree for transaction to be accepted. There is no central access point which can be manipulated

#363

  1. Incentives ensure that members of the network agree on what is true and what is not, resulting in a trustless system.

  2. Central databases can be maintained and altered by one party with no agreement of what is recorded.

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#364

What does it mean when we say that in blockchain, consensus determine the truth?
Consensus means that the network agrees on the transactions if they are valid. If the network finds it unvalid, the transaction gets discarded.

How is this different from how truth is determined in a central database?
In a central database there is a authority that decides the truth of the data information. Therefore it can be manipulated to the winning of a group of people.

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#365

1 - Consensus can be said to be the system-wide mechanism by which the truth or integrity of transactions are verified, because consensus is an update to the entire recorded set of data at separate points across the network. New transactions are accepted and recorded [added] to all nodes on that network, and the whole network agrees on this and therefore in consensus, or true.

  1. The truth in a central database is determined by one or more administrative entities, who can edit and save what is recorded as the truth, as well as grant more limited abilities to others. As such, there is a hierarchy of permissions. In this case, the truth can be edited, or updated by the central database authority, as can the access granted to other users.
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#366

In central database some1 will always rely on trust, and there will some part, some link of events that will not be acknowledged by other party members

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#367
  1. Consensus collectivly determines truth buy using reward for truth (incentives)
  2. Central data base can be manipulated.
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#368

  1. Agreement among nodes on the correct state of the block chain.

  2. Truth can be determined by one user with write access independently of the other users. Consensus is not guaranteed.

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#369
  1. Decentralized verification don’t need to trust anyone just the network of consensus.
  2. A central database requires you to trust a single source with no consensus.
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#370
  1. It means that with blockchain we are not taking just one party’s word for anything. There has to be a consensus of all parties involved with each transaction or process.
  2. In contrast, a central database is generally only verified or determined by a single party which may, or may not, have access to all of the information from each step in a process. Also, this party may or may not be incentivized to tell the truth. Therefore a certain amount of trust is required.
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#371

  1. agreement between many parties

  2. Fact check by single party

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#372

  1. With blockchain, every transaction or process is verified by every party involved and by properly incentivized third parties. So you never have to trust just one party’s word for anything.

  2. In contrast, the information in a central database is generally only determined and verified by a single party. This party may or may not be incentivized to tell the truth or to do any diligent fact checking even if they are completely honest. Therefore, trust is inherent at least to a certain extent.

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#373
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Consensus, in a blockchain network, refers to all the individual constituent parts (i.e. nodes) agreeing on an outcome/result. As there is constant high frequency of sharing and validating the inputs into that network the result is a 100% truth consensus.

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

In a central data base there is often no or little sharing of the way in which data is compiled/used that forms an outcome/result and this creates an environment where truth can be compromised.

:slight_smile:

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#374

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    All nodes on the blockchain use the same copy of the ledger and every transaction is verified before being executed. So there is consensus that the all data is correct and true for everyone.

  2. How is this different from how truth is determined in a central database?
    On a central database we have to trust that the data is correctly managed and not altered. But with consensus there is no need for trust. All transactions are monitored and verified by the network.

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#375
  1. Consensus in blockchain means that a network of computers (nodes) have mathematically confirmed as a group that data is true Based on the history of past transactions, to create new transactions and affirming old ones. The nodes work together to maintain this trustless data.
  2. In a centralized database it is solely dependent upon the trust of those who maintain the database without any way for those on the outside to independently confirm that the information is true. Giving them the power to change info at will. With decentralized blockchains anyone is capable independently confirming that the information is true And can take part in the network as opposed to being outside the network.
#376
  1. It means that in blockchain decisions are made in a decentralized network without a need to trust in one authority.
  2. In a central database one has to trust a central authority, which is different from blockchain where every decisions are made through consensus.
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#377

1.Consensus (agreement) from the individual members of the network on a transaction determines if it is accepted or rejected as the truth.
2.in a central database transactions are checked or verified by the administrator or a power user who can edit or delete the transaction

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#378

Consensus is utilized in a blockchain as a built in mechanism, which allows the network to come to an agreement when validating transactions that are to be written on the blockchain. This occurs via some sort of monetary incentive for validating the transactions before they are permanently written on the blockchain.

In a central database we’ll need to trust that the centralized governance has been honest with representing the data in a central database. There is no way of determining if all the transactions are valid without some sort of audit to help determine the truth.

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#379

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

Every node in the network verifies that new data is correct and they are all incentivised to do that accurately.

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

In a central database is determined by whatever the central authority that controls the database. In this case the truth is determined from a single centralized entity and not from a network of entities that collaborate between each other.

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#380

1. What does it mean when we say that in blockchain, consensus determine the truth?
Consensus is the key. All Nodes verify all transactions. The incentives becomes to be the truth otherwise the network in consensus will not accept the transaction.

2. How is this different from how truth is determined in a central database?
A central database ruled by a state or company is there own truth and they decide what it shall include (or exclude) With blockchain everything is transparent. Honestly wins, the incentives to cheat dissapere.

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#381

  1. In the blockchain space, consensus is reached when every node verifies the transaction independently and work collaboratively to reach a mutual agreement what the truth will look like.

  2. While in a central database, the central authority will look at the transaction, verify it and make the sole decision what the truth will look like.

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