Homework on Consensus - Questions

Blockchain and Bitcoin 101
#4862

Consensus determines the truth in blockchain because it is built on incentive that we all want to make money. All the nodes needs to agree that the transaction is valid before it goes trough, and are rewarded by doing so.

The difference is that unlike a central database where the “leader” makes the decisions, we have a network of party’s deciding what is true and what is not true. For example in Bitcoin, when there is a consensus of the network to make a transaction to go trough. All decisions are being double checked again and again, its not decided by one central database which makes it almost impossible to cheat. So we have trust in the transaction from all the nodes in the network.

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#4863
  1. What does it mean when we say that in blockchain, consensus determines the truth?

Because of verification between nodes, trust is removed. This establishes trustlessness. “Gaining money by being honest.”

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

Truth in a central database is centralized to whatever authority determines the truth. Therefore, truth can be manipulated. Like in the example with a company claiming a “sweetener,” when actually it was “sugar.” “Consensus removes trust and is achieved through incentives.”

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#4864
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Information is only added to the network when the network agrees that it’s correction information, therefore removing the need for trust in a system
  2. How is this different from how truth is determined in a central database?
    In a central database it only takes the one database to fail for the truth to be altered.
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#4865

  1. Consensus determine the truth because the many parts that makes up the consensus will allow checks and balances that leads to truth.

  2. Truth determined in a central database could be corrupted and be manipulated since all the information is contained to central location not accessible by many nor shared.

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#4866

  1. It means that everyone that participates in the network can verify if any transaction on the blockchain is accurate, and anyone that tries to enter inaccurate data can quickly be flagged as false when compared to the permanent record. They are all incentivized to do so by potentially earning blockchain rewards as they confirm every entry as true or false. In the case of the yogurt supply chain, every participant is further incentivized by maintaining their business reputation. If they tried any form of dishonesty, it would be obvious to the entire network.

  2. Because centralized databases are vulnerable to bad actors or careless mistakes since it has a single point of failure. Even in the case of independent auditors, they could still collude and maintain inaccurate records.

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#4867

In traditional databases, truth is established by a central authority which is entrusted with verifying that all participants in the network are playing by the rules. All participants must trust that these gatekeepers are treating everyone equally and applying the same measure for truth for all clients. The people who have a privileged access to the network can make changes without any agreements from other participants of the ecosystem.

  1. Consensus leads to the true, accepted state of the ledger with the creation of each block. Once a transaction has been confirmed it can not be tempered with or altered and thus represents the new reality or the new true state of the ledger.
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#4868

1 everyone must agree

2 in a central there is no consensus needed so no guarantee that it is true

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#4869

What does it mean when we say that in blockchain, consensus determines the truth?
All decisions are made together by a network of computers that reach consensus by verifying the truth.
How is this different from how truth is determined in a central database?
In a centralized database one person determines what the truth is

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#4870
  1. What does it mean when we say that in blockchain, consensus determines the truth? - It means that whatever it is that everyone in the network agrees upon is considered to be the Truth. Everyone in the network is incentivized to be honest that’s why consensus determines the truth.
  2. How is this different from how truth is determined in a central database? - In a central database the network can cheat as it is not incentivized to be honest and is not verified.
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#4871

1.) When we say “consensus determines the truth” in the context of a blockchain, we mean that all users on the network agree that a particular transaction is valid. We can trust that none of the network users are being dishonest, because they’re financially incentivized to be honest (and disincentivized to be dishonest).

2.) The method by which a central database determines “truth” differs from blockchain in that, as the name suggests, the decision is made centrally. This means that the database and its administrators have complete control over what is accepted into the database and what is rejected - which creates the potential for corruption and manipulation.

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#4872

  1. In blockchain, consensus determines the truth by verifying the ledger of the blockchain via the public network of the computers which is incentivized for verification of ledger.

  2. In a central database, the database is controlled by 1 entity, this database can also be corrupted, altered or hacked.

2 Likes
#4873

  1. All the computer must come up with an agreement without relying on the central authority.

  2. It doesnt use emotions-- only mathematical and scientific methods.

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#4874

  1. That if some new transaction/information makes sense and could be confirmed and added to the blockchain is determined by confirmation from multiple sources - computers which are part of this network.

  2. In central database is just one source of truth and nobody is above this central authority who can doubt its truthfulness. Because of this fact it is not that transparent.

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#4875

  1. Its a public checking system that verifies transactions unanimously.

  2. Central databases are controlled by a central authority that can be subject to corruption, manipulation, and intervention.

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#4876

[quote=“ivan, post:1, topic:8425, full:true”]
Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    That’s several parties in the network are coming to an agreement on the transaction
  2. How is this different from how truth is determined in a central database?
    This consensus is built on incentives.
    Financial reward.
1 Like
#4877

Answer 1: Consensus is agreement of multiple computers involved in blockchain transaction to accept or reject its authenticity.

Answer 2: In Central Database as its local to one database, truth is only declared by one particular computer and other computers on network has no idea.

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#4878

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus is built on incentives to verify thus removing the need for trust.

  2. How is this different from how truth is determined in a central database?
    A central database just holds transactions that are determined to be the truth but they are not verified by consensus.

2 Likes
#4879

  1. All computers in the blockchain network need to verify and agree on the same thing. Incentives to tell the truth.

  2. In a central database you have to trust that everyone involved is playing by the same rules and telling the truth.

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#4880
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means that we can use the consensus of suppliers to check the supply chain to hold companies liable when they say that they are offering special goods and services
  2. How is this different from how truth is determined in a central database?
    It is different from how the truth is determined in a central database because a lot of times that information maybe private or can be forged. It is not tracked or verified publicly and therefore not trustless.
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#4881

  1. Since all nodes have to agree about any information you can say consensus determine truth.

  2. In a central database you have to trust the person which is giving you the informations you are looking for.

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