Homework on Consensus - Questions

Blockchain and Bitcoin 101
#4762
  1. concensus is uniform thruout, if one party is lying theyre busted and not allowed to participate.
    2)central database is -garbage in, garbage out.
    they have a motive to lie, money etc…
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#4763

1.Because it’s an agreement by the data.
2. the data is centralized there’s no verify.

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#4764
  1. All parties in the blockchain agree about the validity of a transaction
  2. In the blockchain, it is transparent and achieved through financial incentives to miners. Versus, not transparent in central databases and easier to fudge the numbers.
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#4765
  1. The consensus mechanism decides which blocks are added to the chain. All computers will check if transactions send to the blockchain are correct(verification).
  2. In a central database we have to trust a single copy database which can be altered or/and a central authority which dictates the truth.
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#4766

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

In a Blockchain, the decentralized public ledger network verifies the truth. This is reached through financial incentives. So when ledgers find consensus with mathematical proof, they verify truth.

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

A centralized database lacks of verification of different players. Financial incentive does not work here, as the central player would benefit of the incentive, as well as of a manipulation of the database (determining the truth himself).

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#4767

  1. It means that the truth is defined / verified by the participators of the network, the validators need to confirm if certain transactions are true (by looking in their copy of the database and verifying the input / output). These validators are incentivized for being honest by getting rewarded for their (correct) information and/or penalized for wrong information. Transactions are only confirmed if most of the network participators confirm the correctness of the input.

  2. In a centralized database consensus is not required for achieving a “truth”. A central authority can control the database and basically single handedly defines what is the truth. Additionally their “truth” can be modified if the central authority so pleases, changing the truth of the past and hence creating a new “truth”. A central database is not decentralized and can be manipulated / controlled.

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#4768
  1. It means that there is accountability, not only is there a financial incentive for being honest; the networks are talking to one another. So when a node or supplier states something, the other components in the network will determine if that is true or not.
  2. In a central database, truth is determined by the auditor. There is not other suppliers that will digitally hold you accountable.
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#4769
  1. What does it mean when we say that in blockchain, consensus determines the truth?

Each transaction have to be approved by other members of the blockchain. Several parties are involved in the transaction and are performing unbiased and independend. So when agreeing what remains is the truth.

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

If you are not able to get access to the information needed, you have to trust the sources of information. (Owner of the database) In central database the truth is determined by those who control it.

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#4770
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    The truth is reached when the unanimity of the intervenients approves the transaction.
    The consensus through blockchain is the mathematic meaning of reliability.
  2. How is this different from how truth is determined in a central database?
    A central database does not offer reliability because the institution or person who owns the database can determine which information may or may not be accepted in the database.
    Therefore can me manipulated.
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#4771

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    The truth is evaluated between different parties cross checking each other.

  2. How is this different from how truth is determined in a central database?
    The central authority has a claim to truth that rests on a number of factors not all of which are mathematical and are less rigorous such as reputation.

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#4772

  1. all interactions in the network need to be verified by the majority of the involved nodes, which in return will provide them with incentives.

  2. there is only one truth in a central database, which cannot be verified by any other database. also there is no incentive for contributing in true interactions, it´s actually quite the opposite. when only one participant is controlling the data, it can bechanged to their favor.

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#4773

  1. All nodes in the blockchain nodes must agree on the availability of this exact transaction potential to happen. And confirm it.

  2. Decentralized and Incentivized to verify the truth.

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#4774
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    A. Consensus for the transaction and all the nodes are in agreement. It is not centralized and telling the truth is incentivized.
  2. How is this different from how truth is determined in a central database?
    A. Central database has a central authority and therefore can be manipulated. A decentralized system is harder to manipulate.
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#4775
  1. Consensus will remove trust by having a net work of computers that need to agree on what is true.
    2.Not just one person has say as to what is true, several parties are involved checking what is true.
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#4776
  1. Because the nodes are incentized to follow the rules, making a disrespect of rules not profitable.
  2. In a central database, there are middleman that can cheat with unverifiable false informations.
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#4777

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Several parties have accepted the transaction, agree that the information can be added to the blockchain. Since there is agreement there is a type of checking or confirmation of the legitimacy supporting the trustworthiness of the addition to the blockchain. Consensus means that there is agreement on the addition which means it IS the truth.

  2. How is this different from how truth is determined in a central database?
    In a central database, the addition or a deletion or any other alteration could be made by one party only and because it is not repeated elsewhere there is no verification that the change was correct and accepted by the database. It’s like when several people do the same math problem and they all get the same answer then we know it is right if the same set of rules were followed. If there is a difference then further work is required to determine the correct solution.

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#4778

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

Truth determined by consensus in the blockchain means that through the process of verification in the network the validity of a transaction or a statement can be confirmed. Since the blockchain incentivises honesty through financial reward it also creates a trustless verification process to enable a consistent consensus of each bit of information in the blockchain.

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

A centralized database operates solely off the data it is given by a single source that can be disputed and altered. As well currently in many financial situations dishonesty is incentivised as it usually costs less to lie then actually full fill a commitment or obligation. A central database also has nothing to prove its consensus with other databases. The truth a traditional database is only as solid as the information that it is fed.

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#4779

  1. What does it mean when we say that in blockchain, consensus determine the truth? WHEN THE MAJORITY OF NODES AGREE WITH EACH OTHER.

  2. How is this different from how truth is determined in a central database? IT IS EVERYONE COMING UP WITH THE DECISION TOGETHER RATHER THAN CENTRAL ENTITY MAKING THE DECISION.

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#4780

  1. In blockchain consensus determines the truth by having multiple parties verify and agree on every transaction made before adding it to the blockchain. Every party involved has a say if a transaction is valid or true.

  2. In a central database, only the people who have access can determine whether something is true or not and other parties involve just rely on ‘trust’ based on what the central database announces or what they say to be true.

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#4781
Benefits of Using Blockchain

BENEFITS OF USING BLOCKCHAIN

1. What does it mean when we say that in blockchain, consensus determines the truth?
It means that the truth is not determined by one source (there is no one source of truth), but is agreed upon by the blockchain network of computers (group decision making) to determine the truth

2. How is this different from how truth is determined in a central database?
In a centralized database, all nodes depend on a single-central node for storing and retrieving data.
This one source of truth can lead to errors. Whereas, in a decentralized environment truth arrived by a consensus decision

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