Homework on Consensus - Questions

Blockchain and Bitcoin 101
#4640

1.What does it mean when we say that in blockchain, consensus determine the truth? - Consensus determines the truth due to the existance of a network that agrees on the same information AND the financial incentive behind.
2. How is this different from how truth is determined in a central database? - In a central database, truth is mostly based on TRUST, while in blockchain trust can be double-checked by veryfying it. Also, truth in a central database can be corrupted, as transactions/information can be both added and removed.

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#4641

Homework on Consensus - Questions

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

All blockchain nodes have an incentive (block rewards) to tell the truth. That’s why the majority of the nodes on the network will tell the truth when confirming a block. When the majority confirms the lastest block, a consensus is made by the network that the lastest block is legit.

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

With a centralized network, the data is determined by the central entity. The database could be hacked or in the control of a bad actor.

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#4642
  1. What does it mean when we say that in blockchain, consensus determines the truth?

Consensus is the agreement by several parties that something is so. So in the blockchain it means that consensus has been determined by participants in the blockchain network that something is true or false and as such can therefore be present on the blockchain or not be allowed presence on the blockchain.

Consensus renders it practically impossible to cheat on the blockchain. Not because you can trust a participant but because you can verify their claims by tracing and checking the validity of their claims on the network.

As consensus is provided by parties/computers on the blockchain these parties are incentivized to tell the truth, generally via financial incentives.

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

Truth is determined on a centralised network by a central administration. In effect this means that the administration can manipulate the truth in order to manipulate a mass of individuals to make certain decisions. In effect it enables a central administration of a few to manipulate the decision making of many through the spread of potential misinformation. Furthermore there is no guaranteed way for an individual to trace the claims on a centralised database like there is on the blockchain/public ledger.

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#4643

1.It means that you can only do things when the other blocks agree with the data and you can not change any information in the block
2. In a central base there is a person that says what s the truth and what not and facts can alway be changed manually

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#4644

  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?

  3. The truth is determined by a whole network of nodes using a majority rule. As there are many nodes that validate new data being added to the blockchain, provided that the majority of nodes are ‘honest’ we can be confident any data successfully added to the blockchain is true.

  4. A central database is unfortunately open to manipulation by the controlling party, whether it be an individual or company. This means we have to trust that the database is indeed accurate and true and has not been manipulated to suit the controlling party or any other party.

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#4645

  1. The consensus mechanism used in a blockchain is able to mathematically verify/prove that every data stored and happening in the blockchain is the truth because these network of computers is incentivized for being truthful.

  2. A central database is not controlled by a network of computers but instead being controlled by a centralized medium that does not fundamentally needs to be incentivized to tell the truth. So the trust is over reliant on the entity controlling the database and will affect users in terms of securing data privacy.

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#4646
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus means that all validators (not sure if use the term correctly here) are agreeing on the current state of ledger. An transaction or information is only added to the blockchain if there is consensus and everyone agrees.

A nice feature on top is that everyone is incentivized to tell the truth. The common goal is to make money. In this case telling the truth makes money. Not telling the truth costs money.

  1. How is this different from how truth is determined in a central database?
    As the name implies, it is central, so there are less validators. Most likely only one, hence the information is more vulnerable to manipulation. Instead of being able to validate the truth, one would have to trust in truthfulness.
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#4647
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    Consensus on a blockchain is where multiple participants (miners/validators) agree on the transactions added. This removes the requirement for trust and this is achieved by incentives.
  2. How is this different from how truth is determined in a central database?
    The truth is agreed by numerous decentralised and independent parties, it is not controlled by a single entity or person.
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#4648
  1. What does it mean when we say that in block chain,
    consensus determines the truth?
    It means that all parties, computer communicating with each other with in a network,
    in the supply chain are communicating with each other, so it doesnt work if one party
    cheats and claims something which is not truth. And the key to play by the rules,
    everyone is getting incentivizes for checking the truth and agreeing.
  2. How is this different from how truth is determined in a central database?
    Database owner can corrupt data in central data base, while block chain is decentralized, based on protocol and transactions or supply chain entities communicate to proof the truth.
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#4649
  1. What does it mean when we say that in blockchain, consensus determines the truth?

Consensus is a multilateral agreement of most participants on what the truth is, in any given circumstance. When it comes to blockchain, consensus means that most miners/nodes in the network agree on what the certain version of the blockchain is. Consensus = agreed upon truth.

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

The truth in a centralised database is dictated my this database’s central authority. Whatever they say the truth is at any given time - is the truth at that current time. Consensus in such a scenario is irrelevant, since their ‘‘version’’ of truth is always the RIGHT one.

’‘He who has a why to live can bear almost any how’'

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#4650
  1. What does it mean when we say that in blockchain, consensus determines the truth?
  • The truth is determined by proof of consensus rather than a central authority.
  1. How is this different from how truth is determined in a central database?
  • A central database uses proof of authority and can be easily manipulated or corrupted by the database owner.
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#4651

  1. “Consensus determine the truth” means that the network of computers all work together to verify which transactions are true and false instead of a person, company, and/or institution.

  2. It is different from how truth is determined in a central database because the consensus is incentivized to tell the truth and actually loses money when it does not tell the truth.

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#4652

  1. In Blockchain, when we say that consensus determines the truth, it means that a new transaction can only be added to the ledger if the network agrees that it’s legitimate.

  2. In a central database, there’s an entity that has central control. The entity dictates the truth. The truth isn’t collectively agreed upon by several parties.

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#4653
  1. What does it mean when we say that in blockchain, consensus determines the truth?

consensus provides incentive to validators to provide true information and disincentives for those who attempt to cheat. Consensus (PoS, PoW, PoH, …) is trustless by relying on decentralized parties agreeing.

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

truth in a centralized databased is based on trust of the party inputting the transaction data.

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#4654

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

  • Everybody (or better every computer) needs to be in consens, if they want to include a transaction into the blockchain or not. When all participants say “yes, this transaction make sense” then it will happen. Otherwise not. This consensus is achieved by a financial incentive.

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

  • In a central database there is only this one company or person who is determine which information or transaction is true and which is not. You need to trust this one company, that it will be all legal and alright. But nobody can proof that. (you could see that at wire card)
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#4655

The network of computers come to an agreement to make sure whether a transaction makes sense or not to be accepted in the database. Basically it removes trust because once again it can be verified. During any stages of a supply chain for example, the computer network helps preventing anyone from cheating and to keep the informations accurate between the whole network. All decisions are made by consensus.

A central database is controlled by the authority who makes the truth. It can manipulate the truth as it likes. There’s no way to trust it and know for sure if it cheated and told the truth.

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#4656
  1. What does it mean when we say that in blockchain, consensus determines the truth? In blockchain, information is verified or discredited by multiple entities instead of one. If false information is presented to the blockchain, it is discredited by the multiple entities and is disregarded.
  2. How is this different from how truth is determined in a central database? In a central database, one entity can hide information that is needed to discern the truth of the information presented. Also, unless there is reason to believe falsehoods are present, the information provided by the central database is not questioned.
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#4657

  1. Because all of the information in the blockchain is publicly recorded, it can be verified by all the computers in the network. Therefore, when everyone agrees on the truth, independently verified, consensus is reached.

  2. In a centralized database, the truth is determined by the central authority instead of among all the computers in the network.

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#4658
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Each of the nodes on the network must agree that the information has been verified in order to be added to the blockchain.
  2. How is this different from how truth is determined in a central database? In a central database individuals could approve a transaction that has not been verified.
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#4659
  1. Consensus determines the truth because all nodes in the network must agree on what is true or not, and they are financially incentivized to do so. If all nodes in the network can come to an agreement, then the transaction is added to the ledger.
  2. In a central database, truth is determined by the entity in control of that database. This makes it susceptible to manipulation.
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