Homework on Consensus - Questions

Blockchain and Bitcoin 101
#5103
  1. before a transaction gets added it will get checked by diffrent nodes to be sure that its correct
  2. Because in a central database there is always someone that still has the control over the system that can add/edit/remove stuff/info.
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#5104
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    When a transaction is made for let’s say bitcoin, the network needs to verify if the transaction is valid by checking the blockchain database.
  2. How is this different from how truth is determined in a central database?
    On a central database you can never know who or what approved the transaction or if the transaction was or is even valid.
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#5105

The network decides whether the transaction is valid, i.e. “does it makes sense?” before adding it to the blockchain, hence the truth is automatically determined in a trustless or verifiable manner.

Central database is controlled by the central authority which can modify or delete the transaction, which questions the authenticity or proof of the transaction. Transactions in blockchain is verifiable and public hence providing trust and confidence.

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#5106

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus determines truth in blockchain because the only valid ledger on a blockchain is the one where the majority of nodes on the network share and broadcast the same information and this agreement is followed and is considered the truth.

  2. How is this different from how truth is determined in a central database?
    In a central database, truth would be determined by a central authority, The information stored in centralized database can be manipulated anytime from the central authority.

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#5107

  1. Consensus in blockchain occurs when various nodes agree that the transaction is valid. If there is discrepancy on a particular node that is different form other nodes that transaction would not be added to the block because the consensus is that the transaction is not valid.

  2. In a centralized database consensus is reached by the centralized entity that owns and maintains the database. This is flawed in that the other party interacting with the database has to trust in the integrity of the centralized entity to act in good faith and honestly ensure the database transaction is true and accurate.

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#5108

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    By having a consensus everyone is talking to everyone else. So others will know quickly if what someone is saying is untrue. If one person tried to lie and get others involved those involved lose money. As there are financial incentives to telling the truth and financial consequences for not telling the truth.

  2. How is this different from how truth is determined in a central database?
    A central database is not as controlled, and visible as blockchain. It can be more easily manipulated; you just have to know who to bribe or blackmail to get what you want to be put on it or removed from it. When everyone can see that it is impossible to change it as there are too many witnesses to bribe or blackmail.

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#5109
  1. What does it mean when we say that in blockchain, consensus determine the truth?

A: Conesens of the blockchain means that there aren’t any illegal transactions or rugpull schemes. The ledger must work even if a node goes offline. Transactions must work smoothly and according to the Smart Contract. Incentive for users who make transactions on the blockchain will provide consens.

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

A: A central database to determine the truth has a “supply chain”. The same goes with the blockchain, but hiding the ownership of the transaction and the owner. Truth in crypto is bound to the smart contract. Central database can change the rules, blockchain is a digital carved stone.

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#5110

1.) consensus is the agreement that the network verifies the transaction to be true because it checked if they have what it claims to hold

2.) Its more based on trust that someone isn’t writing up something for their own benefit in a certain instance

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#5111
  1. Consensus is a system when every validator has to verify is a transaction is true or false.
  2. the truth is only determined by a few or 1 in the central database so it is not very reliable
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#5112
  1. everything is verified by multiple networks before it can be added on chain.
  2. Any central database can be manipulated as there is no rule that rewards the truth.
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#5113
  1. Consensus is the agreement to have the same information irrespective of the blockchain node meaning that such consensus remove the trust and becomes a truthfulness blockchain.
  2. In a central database, the trust must be verified through a external mechanism that could be trusted. However, central databases could be easily modified by entities/persons with enough authority.
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#5114

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    The ledger can be checked and every transaction is and must be verified to have the funds they claim to have before it can go ahead

  2. How is this different from how truth is determined in a central database?
    Central databases are opaque by design and therefore can be tampered with. The central organisation also controls the transactions so there must be absolute trust in that organisation to be telling the truth (which we see fails in over and over in the real world in the case of clothes or food provenance for example)

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#5115

  1. for a transaction to be put on the blockchain it has been decided by a decentralised network of computers that it is correct. Multiple parties have verified that is is correct and by this method we can determine it is the truth.

  2. the consensus method of blockchain is set up to incentivise those who act truthfully and punish those who don’t. Central databases don’t act in the same way. Firstly there is no incentive for truth telling and secondly central databases are controlled by an entity who can produce data or transactions with out getting verified by other parties.

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#5116
  1. What does it mean when we say that in blockchain, consensus determine the truth?
  • Consensus is made collectively by all, it does not depend on the trust of certain people. The truth is verified by all based on incentives. Nodes are verified by incentives of honesty.
  1. How is this different from how truth is determined in a central database?
  • A central database is controlled by centralized power and truth is determined not by all but the power; it depends largely on trust without the necessity of verification. Blockchain differs by uniting all humans without the control of centralized power.
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#5117
  1. The truth is designed collectively, unfortunately it is in people’s nature to cut corners, and alter the truth to get ahead.
  2. In the central database the truth can be altered and changed by whom owns the data.
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#5118
  1. What does it mean when we say that in blockchain, consensus determines the truth?

It means that truth is not dependent on any central organisation, but rather, dependent on agreement of the different nodes, which is easily verifiable.

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

Central database is built on trust. This trust is dependent on how truthful the central organisation is.
Decentralised database is trustless and easily verifiable.

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#5119

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

In Blockchain, Consensus determines the truth by a network mathimatically agreeing as a group that work is true before it would be accepted by the network

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

In Blockchain A network of computers have to agree whether it’s true or not true before it can be added to the blockchain and can be verified where as a central data base you must trust the system

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#5120
  1. This means, that if there exists consensus about new information on the blockchain, that it must be the truth, since it’s a trustless system.
  2. In a central database the truth is whatever the organisation that owns the database wants it to be. This can be different to the real truth.
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#5121
  1. In a consensus all of the information are being checked at the same time. A ledger is used to make sure all transactions are put in logical order from where it was made as proof of trust.

2)A Central Database doesn’t give the incentive of truth and don’t deter bad business practices and can hide a lot of information. To get the information takes much longer to sort out which costs money. Having a blockchain consensus keeps the businesses honest.

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#5122
  1. Provenance is confirmed by consensus, wherein numerous sources are incentivised to be honest and tell the truth. Using multiple sources to verify the truth is intrinsically stronger than a single source.
  2. A central database is less secure because a single entity is resonsible to verify trust, which makes it far more vulnerable to dishonesty as it does not require numerous parties to confirm the honesty of a transaction or record. It has less incentive to be honest than a group ‘decision’.
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