Homework on Consensus - Questions

Blockchain and Bitcoin 101
#4580

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Information is provided through supply chain/network to remove the need for trust and replace it with the ability to verify information at each stage of the blockchain. Compliance is motivated by the incentive structure established within the blockchain model.

  2. How is this different from how truth is determined in a central database? Truth is fabricated, omitted, elaborated, withheld, or controlled by private parties with vested interest in public perception and profitability which de-incentivizes the motivation for absolute transparency and ethical practices.

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#4581
  1. All decisions are made by a consensus. Truth is incentivized within the network operators.
  2. In a central database all parties involved must trust that the entity or person overseeing said database. Decentralized network with a consensus to make decisions makes it a trustless network making it very difficult to cheat.
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#4582
  1. In the term consensus determine the truth, covers the fact in blockchain the majority consensus has to come an agreement for a transaction to be valid and therefore is immutable and/or protected for being tampered with or meet the needs of an individual or specific group.
  2. In a central database a single copy database can be altered, easily hacked, and ultimately can be tampered with to meet the needs of a specific few or individual.
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#4583

1 What does it mean when we say that in blockchain, consensus determines the truth?
* In blockchain to decide whether a transaction should be included or not multiple nodes needs to verify the validity of it. Each nodes contains its own copy of transaction DB and each of them checks the track record to decide whether this transaction is legit.

2 How is this different from how truth is determined in a central database?
* Traditional DBs will have single source of truth, in blockchain truth comes from multiple nodes.

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#4584
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means that different computers/nodes in the network need to agree on a particular transaction and that leads to removing trust.
  2. How is this different from how truth is determined in a central database?
    A central database can be altered by one single entity without consent from an other party.
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#4585
  1. In blockchain, consensus determines the truth by a collective of agreements by verifying transactions by blockchain miners for financial gain. Miners are rewarded financially for staying truthful and adding new transactions that are legimate.
  2. How this is different from how truth is determined in a central database is through the use of transparency and multiple collectives working together to authorise a legitimate transaction. As the blockchain has multiple copies of transactions it makes it impossible to make and implement changes without it flagging up, where as a central database could quite simply make changes without any further agreement from any other authority, thus potentially making the database untruthful.
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#4586

1 - All of the nodes have to agree on a transaction before it gets added
2 - In a central database, the Db is the only source of record (and thus - the truth)

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#4587
  1. What does it mean when we say that in blockchain, consensus determine the truth?
  • A consensus is made by a network of computers who verify each transaction that is put on the blockchain. Rather than a central intermediary determining the “truth”, a network of incentivized individuals determine the truth in a trustless way.
  1. How is this different from how truth is determined in a central database?
  • A central database has a central figure who controls the outcome of the truth and that figure has to be “trusted”. In blockchain, there is no trust involved. The network verifies the truth.
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#4588

  1. With a blockchain, all users hold a copy of the ledger, verification is required for data to be added which entails all users verifying the validity of such input by checking their local copy of the ledger to verify it. Only when all users verify the validity of the transaction can it be added, so only with consensus can something be added, and what is added is therefore true.

  2. Blockchains are decentralized, meaning that no central authority controls input. In a centralized database what is ‘true’ is controlled by whoever is authorized to edit it, as such ‘truth’ in such a database may not be widely agreed upon by those that interact with it.

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#4589

  1. It means that nodes (so more than 1 party) come to consensus on the objective truth. It is based on shared version which is confirmed by all the actors in the net.

  2. In central data base it is a 1 actor, central managed devise, dependent on decisions of 1 man or company.

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#4590

With consensus, each and every interconnected transactions are verified by all the parties in the blockchain database. No one can hide any details, or try to make a false transactions, because consensus is built on incentives.

In central database, businesses needn’t reveal the exact truth of all their transaction, they could be manipulated. Datas are verified by a single body. This way both the businesses and people who invest in these does not gain much.

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#4591

Homework on Consensus - Questions

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

Multiple nodes on the network agrees that the new addition to blockchain is correct and true. This removes the need for trust as this a mathematical equation.

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

On a central database there eis only one copy and one has to trust that the data on the database has been correctly been entered. There is no verification by multiple nodes.

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#4592
  1. What does it mean when we say that in blockchain, consensus determine the truth?
  • That we need to agree on playing by the rules and respect them.
  1. How is this different from how truth is determined in a central database?
  • It needs to be validated and proven by the chain.
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#4593

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

  • It means that before a transaction is approved, the regulators will verify it to confirm its origin.
    And these regulators will be incentivized to verify it.

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

The main difference is the clearness of the company’s transactions, which covers, supply chains and financial transactions

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#4594
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    • Many nodes decide if a transaction is a valid one to add to the decentralized public ledger with an unified and verifiable and incentivized process to achieve that goal of the truth
  2. How is this different from how truth is determined in a central database?
    • It’s a trustless system where every transation of the system can be verified so the thurth can be easily verified which bring more confidence by being able to audit and verify instead of having the possibility of database manipulation hiding the bad actions.
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#4595
  1. The consensus is established by various, decentralized nodes on the blockchain verifying the data.
  2. Truth on central databases is verified via one source, which can be manipulated in one place. Manipulation of data would be exponentially difficult in a decentralized database because the manipulation would have to be agreed upon across several nodes.
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#4596
  1. What does it mean when we say that in blockchain, consensus determines the truth?

There is confidence because the information can be verified. Not through trust but through data.

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

There is no checks and balances when you have one entity claiming to be trustworthy. There’s no verification of the network.

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#4597
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    The agreement between all nodes to confirm a transaction.
  2. How is this different from how truth is determined in a central database?
    A central database is stored in a single location and can be altered also the information needs to be trusted instead of being verfied.
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#4598
  1. verifiable agreement by many parties
  2. centralized DB are isolated and not verifiable
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#4599

  1. In blockchain, consensus determines the truth because it is a decision that is required by more than one person to decide whether or not the information will be on the ledger. This is accomplished through economic incentives.

  2. In a central database, there is bias to put it simply. In the central database there is a bias based on there being able to be somebody in charge of determining what is posted to the ledger or not.

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