Homework on Consensus - Questions

In a decentralized network, consensus is achieved through financial incentives. By creating a network of trustless verification, users can depend on the validity of the network without having to trust any individual party. This provides a situation where it is practically impossible to cheat and parties can rely on accurate and verified data.

In a central database the data is verified by individuals only through proof of authority and does not require consensus to be accepted into the ledger. The records can be changed or corrupted by the controlling entity or individuals without the need for verification from other parties involved. Trust of individual parties is required when working in a central database and the risk of fraud is high.

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  1. The truth is decided and agreed upon by the collective.

2.In a central database the truth can be altered and cannot be in a decentralized network.

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  1. throw using a nets of computers (nuds) that are independent one from another and every one of them has the Ledger Copy, we can have a trust-less system that Control and approve the transaction for authenticity, after all the computers in the net ā€œagreeā€ that the transaction is authentic it will be written on the block chain.

  2. In a Single data base, the ā€œownerā€ of that data base decide what to write down or approve, in this case we have no certainty that what is written is true and not manipulated.

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

a) Chain participants vote to determine what is true. Changes to a blockchain require a programmed number of votes (confirmations) from participants. When that amount is reached, we say consensus has been achieved (truth identified).

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

a) There is but a single point of truth, what is returned from the query. Whatever data is returned is believed to be true. If the data is manipulated and goes undetected, when that data is returned it is believed to be true.

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1 all transaction require verification from multiple validators, creating a network with all information available to all , validators are incentivized for playing by the rules thus eliminating counterfeits and duplicates.

2 centralized system requires trust from unknown entities or persons. transactional information and chain of custody not readily available…shady.

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The consensus determine the truth by having a network of players in the same arena verifying one and another. Without credentials, a new company can’t say that their products are better without going through the proper channels.

The central database may have one entity making the rules which could lead to corruption and scandals.

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  1. it means that the consensus mechanism makes sure that new added transactions are legitimate and are following the rules of the network.Consensus determines the truth on the blockchain by members of the network verifying a transaction. This creates trust that the transaction has taken place. Having consensus in the network makes it difficult to cheat the system, for example, in a supply chain where other members of that supply chain can verify the accuracy or authenticity of a claim made on that chain. This creates a trustless network where the TRUTH of all the many transaction on that blockchain can be established.

  2. In a central database is very hard or impossible to verify every single transaction, or source of information from different sides. The truth could be, or usually be one side story. Fake information can’t be avoided. The truth in a central database can easily be manipulated.
    The special of Consensus is: it builds on incentive. Truth behavior makes reward. There is no such mechanism in a central database.

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

Multiple computers have access to a copy of the public ledger and are incentivised to play by the rules of the blockchain to determine whether an entry is true or false.

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

Officials and their bosses are charged with the responsibility of playing by the rules. No-one from outside the organisation is usually there to corroborate their decisions.

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  1. What does it mean when we say that in blockchain, consensus determine the truth?
    In blockchain transactions are verified by different computers and people are financially incentivized to verify a transaction making it a trustless system.
  2. How is this different from how truth is determined in a central database?
    A central database has control over it’s information therefore it is harder to verify every transaction in the database…if it has not already been manipulated.
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A1. Truth is subjective and requires trust as long as it is centralised, consensus makes it objective and thus eliminates the need of trust.

A2. Consensus is established by the validation of the network.

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  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?

1.It means that the truth is decided and agreed on collectively by the computers“s netword.
2.database truth is controlled by a central authority which is prone to cheating unlike in consensus

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  1. What does it mean when we say that in blockchain, consensus determines the truth?
    It means that in order to verify a transaction, all the participants in a network need to agree that it’s a valid transaction. They are incentivized to be honest.

  2. How is this different from how truth is determined in a central database?
    In a central database only a unit of authority has the power to make decisions, wether they are honest or not. There is not a transparent way to verify truth.

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Q1. As new info comes into the blockchain, separate nodes (individual computers) each process new info separately and determine if it’s true. If it’s not true then it won’t be put into the blockchain. This is consensus because no one entity decides the truth.

Q2. In a centralized database the owner decides the truth and determines the outcome.

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  1. What does it mean when we say that in blockchain, consensus determines the truth?
    -Consensus is the agreement of the net work on state changes based on most recent transactions. If the network agrees a transaction is good it gets added to the ledger and if the network finds it to be false it gets discarded.

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

  • In a central database a single copy database copy or single individual chose what is truth. If the database is corrupted then truth is altered.

/ Viktor

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  1. Blockchain consensus determines the truth because each computer in the system has to agree that a particular transaction is valid

  2. In a central database, everything is reliant on trust. There is also no incentive to tell the truth like a decentralized database would offer.

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  • What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus is when all the computers in the network agree on every transaction, and they are given an incentive to tell the truth.
  • How is this different from how truth is determined in a central database?
    It is easier to change or fudge the numbers in a centralized system because there is no other computers or nodes to back up the consensus you are trusting one party to tell the truth. It is much easier to lie when there is nothing to confirm.
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  1. In a blockchain, the only data that can be added is data that has been verified by the network. ā€œā€¦ consensus determine the truthā€ just means that several parties that make up the blockchain agree on something. Thus, creating a chain of verification.

  2. In a central database users have to take facts given by the supplier at face value. The truth could had easily been convoluted down the supply chain by a centralized figure purposefully or accidentally

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  1. In the blockchain, all systems within the network determine the truth via verification. All participants get a monetary incentive to truthfully verify input into the blockchain. That is the mentioned consensus. To truthfully verify data that is about to be added.

  2. There is no way to be certain that information within a central database is the truth. Truth within a central database is always determined by proof of authority. The people
    ( administrators) that can alter/change the information by authority are the ones that determine the truth.

Basically:

Blockchain: Network of computers that have a consensus to mathematically verify the input into the public ledger, while being incentivised to do so.

Central database: Database where people trust other people/administrators, to truthfully manage data via proof of authority within the system.

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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?

In a decentralized network, based on verified information, several parties agree upon a new transaction as being legit.

In a centralized database one party may decide what is and has been true, added or removed.

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1 It means that a number of nodes have to agree to to let a transaction into the blockchain before it is accepted as true.

  1. In a central database there are not different nodes around that have agree.
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