Homework on Consensus - Questions

Blockchain and Bitcoin 101
#4882

1 through the consensus of the network, all transactions can be verified making it impossible to lie without being caught and since there is a financial incentive, to tell the truth, there is no benefit in lying
2 to have the same effect in centralized ledger there would have to be multiple audits done regularly through the entire supply chain to arrive at the same conclusion with a end result of financial loss

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#4883
  1. Consensus is an agreement between multiple parties. In the blockchain, consensus can be used to verify transactions, which is done by multiple nodes to determine the truth.

2.Consensus is an agreement between multiple parties whereas in a central database, only one party is responsible for verification.

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#4884

1. What does it mean when we say that in blockchain, consensus determines the truth?
It means that all the participating nodes in a blockchain network need to come to a mutual agreement about what’s true. In the case of the Bitcoin blockchain this is achieved by validating transactions.
2. How is this different from how truth is determined in a central database?
In a centralized database no consensus between different parties is used, since a single central authority decides what the truth is.

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#4885
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    • Consensus determines the truth by having different nodes verify each transaction. It becomes the “truth” when transaction data coincides with the majority of the nodes. This data then cannot be tampered knowing that it would take huge amounts of computing power to overpower and tamper ALL the blocks on ALL the nodes in the blockchain.
  2. How is this different from how truth is determined in a central database?
    • In a central database, it requires for a certain body of people or organizations in order to say that you are verified. This requires trust from the parties that that central body or regulator is telling the truth.
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#4886

Homework - Consensus

Benefits of Using Blockchain

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

It removes trust and verifies transactions, because many participants involved, it is transparent and decentralized, also money rewards

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

Because nobody can alter the blocks, you can track, trace and verify

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#4887

  1. Consensus determines the validity of the transactions on the blockchain and thus inforcing the legitimacy of them to all the users.

  2. The authority controling a database is controling the truth, and not the users. That being said, it makes it much easier to manipulate information and falsify any aspect of the transactions that take place in that particular network.

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#4888

When there is consensus in blockchain it means there is accountability between everyone that is involved. Everyone can come to an agreement that what is on the blockchain is legitimate and creates a trustless system.

Truth in a central database you rely on your peers to be truthful and hold in decisions of that.

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#4889

  1. Consensus determines the truth because it is the verified results from all participants in the network

  2. Central consensus relies on trust and decentralized consensus relies on mathematical code.

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#4890

  1. All the computers that are in the network comes together and decide whether they’re going to include a transaction to a ledger database or not. So these steps are determining whether the transaction make sense, so It could go further, so-called determining the truth.

  2. It’s all about transparency. In central database there is only one main authority that decides whether it’s truth or not, there is no set of nodes that has the same power for these decisions.

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#4891

  1. What does it mean when we say in blockchain, consensus determines the truth?
    You have a network of decentralized computers that have a copy of the ledger and in a concerted effort, they all work together to a decision that is trustless and verify the information.

  2. How is this different from how truth is determined in a central database?
    In this case there is a central authority and not a decentralized group of networks. It removes any trust and it may not tell the truth or be check by a group.

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#4892

1. What does it mean when we say that in blockchain, consensus determines the truth?
Because for there to be ‘consensus’ i.e acceptance of data onto the network, all nodes must be in agreement.

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

Transparency :Truth in a central database is determined by a single entity within which ‘verification’ power is vested. Said person or entity essentially owns the right to determine what truth looks like.

‘The controlling party can essentially shape the nature of truth’

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#4893

Homework - Consensus

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    —> The truth doesn‘t depend on what a single imstande (person, organisation, company, …) deines as true but in blockchain it‘s the consensus of many dezentralisier network-participants to verifiziert and to confirm the information that‘s to be stored into the blockchain. When the majoritäten confirms a pierce of information, the this agreement (i.e. the consensus) deines the truth.
  2. How is this different from how truth is determined in a central database?
    In a central DB the people who have access rights to write into the DB is limited. Generals the DB isn‘t public. You have to trust the people who have access to the DB that they write only true information into the DB and also that the information (if it was true) won‘t be changed to false information.
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#4894
  • What does it mean when we say that in blockchain, consensus determine the truth?

Consensus use incentive for miners to verify with math the trust of all transactions.

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

Blockchain use ledgers in multiple computers to verify the veracity of a transaction and maintain the integrity of the data base.

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#4895
  1. because consensus is removing centralized trust, to reach an agreement on what is truth
  2. because again, the central database will take as truth anything you input and erase from it
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#4896

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    In blockchain, the truth is validated by a network of nodes which are incentivized monetarily to tell the truth.

  2. How is this different from how truth is determined in a central database?
    A central database is reliant on the integrity of one party to maintain good records etc. It is not immutable and is not trustless

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#4897

  1. This means that we authenticate transactions by checking through the ledger of all other individual copys of the ledger. Once each party determines that the transaction is valid, it proceeds.

  2. Transactions on a central database can be authenticated by a single authority, leaving the network to ‘trust’ the authenticity of that transaction.

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#4898
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    The consensus mechanism makes sure that new added transactions are legitimate and are following the rules of the network. There are many eyes that check and verify and all eyes must agree that what is to be written is correct and truthful.
  2. How is this different from how truth is determined in a central database?
    It is suspect how one and check our self. In a space where no one is watching, it is possible to cheat. A central database is in the hands of the entity that owns the data. That entity itself or owner can manage, edit, delete, add, manipulate the data amongst other things. This is risky.
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#4899

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    It means that people are incentivized (they earn money) to say truth and by saying the truth the consensus is reached.

  2. How is this different from how truth is determined in a central database?
    In a central database we need to trust that given data is real and it wasn’t changed, but we can’t be sure 100%. There is no network that decides if that is true or not.

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#4900

1.What does it mean when we say that in blockchain, consensus determine the truth
-When the network agree that the recent transaction is true,consensus is reached.

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

  • In a central database a central third party have to agree, if the transaction is true.
    This require trust, twords the third party.
    But Blockchain is trustless, decentralised and have no authority
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#4901

1 - the validator nodes have to agree on what the truth is.
2 - in a central database the curator determines what the truth is.

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