Homework on Consensus - Questions

Blockchain and Bitcoin 101
#4157

  1. Consensus is an agreement between the nodes that the information in the public ledger is true. Honesty is incentivized hence the nodes have a reason for coming to a consensus by telling the truth.

  2. Central database does not have provenance. Without provenance, transparency does not exist hence there is no incentive to tell the truth. Therefore consensus is not a necessity in the central database.

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#4158

Homework on Consensus - Questions

  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?

Answers:

1: Consensus determines the truth in blockchain because the nodes monitoring the
blockchain have to agree that all the records in the database are true.

2: Central databases require trust in whoever has access to the database, that theyā€™re
being truthful and accurate with the data.

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#4159
  1. Consensus determine if the transaction is valid.
  2. Truth in a central database rely on trusting a centralised authority.
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#4160

Its the failsafe, if everyone agrees because they have the same copy/info/ledger that is consensusā€¦andā€¦the truth.

In a central database there are much fewer nodes of checks and balance. Greater chance of error.
The risk of corruptability and fraud cannot be eliminated.

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#4161
  1. Several parties decide on the transaction therefore, all decisions on transactions are being double checked. The computers provide validation so there is no way to cheat. The computers are incentiveised to tell the truth.
  2. Only a few people or computers are validating the decision to transact some money in a centralised database whereas in a decentralised database many people can verify your transaction.
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#4162

  1. All computers much agree what is true and what is not and everyone is incentivized to tell the truth.

  2. The database can be corrupted. We cannot make sure that someone is telling the truth. We cannot verify, we need to trust.

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#4163
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means the nodes have to come to a consensus to determine if a transaction is valid. This is done with incentives for the node operators to do so.
  2. How is this different from how truth is determined in a central database?
    With a centralzed database, one entity can manipulate the data and/or transactions as they see fit.
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#4164
  1. What does it mean when we say that in blockchain, consensus determines the truth?

In the network of computers there needs to be general agreement on which transaction makes sense and which not. If the general consensus between different nodes is that certain transaction does make sense, then this transaction is confirmed. The truth is therefore determined on the consensus between the computers/nodes and the consensus is based on their common incentive which is to play by the rules.

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

In central database there are many different elements in the chain, but those elements donā€™t all communicate between each other, which means that the truth can be determined by just one single party and cannot be checked. Others involved depend on their trust. While in blockchain the truth is determined on consensus between the nodes that communicate with each other and make decisions together and their decisions are double-checked.

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#4165
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    It means a consensus among the nodes of the blockchain.
  2. How is this different from how truth is determined in a central database?
    In a central database we must trust a decision maker.
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#4166

1-the consensus is a collective validation or invalidation of a transaction by all computers that are in charge of running the network (the miners and the nodes),and they do it communicating the datas each others.
2- a central authority can decide for a validation, but the the degree of security of transaction is depending on the degree of verification and communication skills of that entity.

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#4167
  1. What does it mean when we say that in blockchain, consensus determines the truth?

It means that the participates in the network all agree on the validity of certain transactions or information. Given the computing power of the honest members in a blockchain it is difficult to cheat the system.

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

In a central database a central authority manages and certifies the integrity of a database. This is not ideal as we must trust a central authority with the power to dictate.

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#4168

  1. It means removing the element of trust and rather is reliant on verification.
    A unanimous decision has to be made before an outcome is accepted.

  2. Centralised database can be manipulated and corrupted.

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#4169

1-its a a bunch of computers working together to make sure the information is valid and should be added to the blockchain.its the trust less system.

2-its the trust less system and decentralized, no authority and canā€™t be tampered.

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#4170

  1. All the computers in the blockchain come to an one agreement based on true verifiable informations .

  2. No one else can access the central databases other than they specify.so they can come to decisions based on their opinions regardless of what actually is true.

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#4171

In my post on provenance, I mentioned the GARBAGE IN GARBAGE OUT problem. I think the consensus concept answered my question.

#4172

  1. Basically it means that the network has to agree upon each and every transaction being confirmed within that netwok. The consensus need to be perfectly agreed upon within the network or it will not execute.

  2. What makes this different from centralized networks is that it removes the need for trust between each party. Each party therefore cannot abuse this trust to their own financial benefit. Making the process much more efficient and operational. The incentive for trust within the blockchain is also a financial one.

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#4173

1: It means that every node in the blockchain is connected to one another and that when something is sent around the the blockchain its verified by everyone

2: we have a non-centralized structure instead of a central base

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#4174
  1. Consensus determines the truth in blockchain because it is built on incentives and on top of that all decisions being made are done together in network thus depending on verification and therefore making it trustless,
    2 . in a central database there is no consensus the decision being made is not that of a network of independent parties thus increasing the untrustability of the data , the desicon is made by one entity and therefore not incentivised .
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#4175
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    1. Consensus determine the truth by confirming via the network the accuracy of each transaction.
  2. How is this different from how truth is determined in a central database?
    1. This is different because in the centralized data base there is no incentive to give an accurate or correct information.
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#4176

  1. It means that a whole network has to approve the rightness of a transaktion.

  2. In a centralised database the opperater of the database is responsable for the validation of a transaction.

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