Homework on Consensus - Questions
-Consensus is achieved when the majority of the nodes are in agreement of every aspect/element/transaction included in the digital provenance/record.
-A central database usually has a single entity/authority that determines the “truth” or veracity of the record.
Blockchain consensus is the process whereby all connections within the blockchain validate a piece of information before storing it.
Central databases can only store and validate a single piece of information. It can be modified because it has no redundant validators to prove its authenticity or if it was changed.
In the case of PoW, miners are incentivized to answer the block challenge the fastest. Correctly answering the block challenge reveals information about the next block and a reward for the miner/pool. This process is important because it prevents anyone organization from obtaining 51% of the network processing power required to reach a consensus and modify or introduce information on the chain.
Before information is added to the database it must first be verified by a majority of nodes on the network.
In a central database the truth is determined by whoever controls that database.
All of the nodes need to come to agreement for it to be verified. All of the nodes cross reference with each other and determine if it is true or false.
It is different because it since there is no one entity controlling or hosting the blockchain and nothing can be removed, nothing can be altered or interfered with. Trust is entirely eliminated when using a blockchain. It also uses cross referencing between nodes to verify the truth vs a central database which only checks within itself.
1- because all the decisions are unanimously made by all blockchain databases, it is thus verified and based on truth, the decisions are then made
2- in the central database there is no guarantee to determine if every participant could be trusted or not
1: It means that when all of the independent nodes operating in a system agree/disagree that a certain transaction is valid/invalid we have what is called consensus and this consensus can thus be seen as a truth because it has been checked by a vast majority of the nodes. We know the nodes are operating correctly because they are incentivized to make correct, truthful, decisions.
2: This differs from truth being determined in a central database because there is only one entity that runs that central database and we are only relying on trust in this entity to provide us with correct information with no easy way to know for sure if the information provided is correct/true.
2.Truth in a central database does not have any other sources to compare or measure up to.
What does it mean when we say that in blockchain, consensus determines the truth?
multiple nodes verify the transaction, therefore able to agree that something is correct or not
How is this different from how truth is determined in a central database?
a centralized database relies on an authority or one or a group of people to verify every transaction which may cause delays in finding errors, in catching problems, or making any changes.
In Blockchain technology, computers all over the world also called nodes that work in harmony to decide if a transaction is correct and excepted into the network or discarded.
2). In the central database, all data is controlled by one central computer that can be controlled by one entity.
What does it mean when we say that in blockchain, consensus determines the truth? A certain number of independent network nodes have to agree on the validity of the source data before its accepted as a truth.
How is this different from how truth is determined in a central database? Data in a central database needs to be audited by an independent third party that can be trusted. However, the data can be changed after the data has been audited.
1.The blockchain network is pubic and all the nodes work together on a public ledger to determine if all transactions are accurate and confirmed
2.In a central database the public as well as customers don’t have access to the companies records therefore theres grey area in transactions thats cant be verified by the public
Because a blockchain database is able to trace everything that happens (and don’t happen). Everyone connected to it can verify it because everything is transparent. There is no way to cheat the system, therefore consensus determines the truth.
A central database is in no way transparent. Although there are some ways, no one can confirm or deny everything in a centralised database except the centralised database itself.
Homework on Consensus - Questions
Network of computers based on an algorythm decide if a transaction is valid or not and recorded or discarded accordingly.
Central database is a sole owner of truth, and a single point of failure (possibly) and the owner of it can change data virtually anytime whereas on blockchain all the participants has to agree.
Consensus with regards to block chain, Means that many nodes/users across a vast decentralized network. They are incentivized, Either through proof of work or proof of steak To keep the block chain trust less By consensually agreeing to the validity of what goes on the ledger!
Centralized database is do not use consensus. They are usually stored in one location With one or two backups. This is a huge transparency concern As you have to trust a centralized authority to tell the truth. They are easy to hack, and easy to manipulate. Creating many trust an issues! Especially when it comes to centralized finance.
Homework on Consensus - Answers
The nodes which built the distributed network all are incentivized to determine if a transaction is correct or not, that the other players play by the rules. Only when everyone agrees that something is correct, it is, Consensus removes trust, instead ensures everyone who wants to benefits plays by the rules.
In a central database the truth or the numbers can be manipulated and consensus is established by a business just saying it is how it is, for everyone else left to trust that business’ doings.