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Essentially all nodes (miners) have to agree that what is being incorporated into the blockchain is factual. As the incentive to do this is a financial reward, miners will be dissuaded doing otherwise as ultimately they will lose any potential reward.
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For a central database, you’re relying on trust and putting your faith in the individuals who control and maintain that DB, as the information that’s added to it is not necessarily absolute, unlike a blockchain ledger which is unalterable.
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- What does it mean when we say that in blockchain, consensus determines the truth?
because the enitre network we have to agree on the truth - which is done by verification - How is this different from how truth is determined in a central database?
because it is centralized and so it can be only up to a few to agree and verify and with a classic database it can easily be changed and youll have to trust the few persons… just see what is happening within the financial sector with fraud - its going back to trusting a few people… this can be easily avoided by blockchain technology.
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Not only one central authority determines the truth. Instead many nodes determine when something is true.
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There’s no central authority that can manipulate the truth.
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Homework on Consensus - Answers
Notes:
- Consensus = when several parties reach an agreement on the correct information that is present/not present
- How consensus works for crypto: Check the ledger and make sure 1) transaction comes from someone with enough funds and 2) everyone agrees on the details of the transaction
- Cannot have provenance without consensus
- In crypto we use provenance + consensus to verify financial information. In supply chain management provenance + consensus might be used to verify supply chain information for products/services
- Consensus is all about removing trust. We do not trust a central authority but instead trust the network … not because we trust the people in the network but because we can verify that the system cannot be “hacked” through software and math
- Consensus is built on incentives (i.e. mining)
- Consensus removes trust from central authorities and provides incentives
1) Q: What does it mean when we say that in blockchain, consensus determines the truth?
A: Consensus determines the truth in blockchain by removing trust from a central authority. This is achieved by having a “trustless” network of computers that are incentivized to verify that all the information is correct. This system is trustless because instead of trusting the network we can verify that the system is “hacker” proof and requires consensus from all parties involved.
2) Q: How is it different from how truth is determined in a central database?
A: In a central database the truth is determined by the central authority which can be altered, hacked (we have seen many examples of this), or cheated. On the other hand in a decentralized system, we have a trustless network of computers that are incentivized to verify the information is correct by checking the blockchain, making sure the sender has enough funds, and that all parties agree on the information of the transaction.
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1. What does it mean when we say that in blockchain, consensus determines the truth?
Answer: As blockchain is a trustless system, it means that the decisions about what is true and what is not are being made by all the participants in the network and there is no single authority. Also, the participants in the network are incentivized to verify and tell the truth. Consensus is the foundation of provenance.
2. How is this different from how truth is determined in a central database?
Answer: In a central database, only the authorized people have access to it, and sometimes they can be even incentivized to cheat and manipulate the system J.
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What does it mean when we say that in blockchain, consensus determine the truth? Consensus means that each node or miner is agreeing the transaction is valid - when enough validations are reached it has reached consensus or “the truth”
How is this different from how truth is determined in a central database? In central database, only the one who writes to it knows if the data is correct or not. It’s possible to cheat, by writing incorrect data and make it appear correct to all the consumers of that database.
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What does it mean when we say that in blockchain, consensus determines the truth? This means that all nodes on the blockchain network must agree that a transaction is valid before that transaction can be added to the blockchain. Because all nodes must agree, it becomes nearly impossible to cheat or place an un-validated transaction on the blockchain. All nodes are incentivized be honest and as a result; consensus determines the truth.
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How is this different from how truth is determined in a central database? Transaction locking and row versioning aside, a central database is controlled by a single entity. One could argue that ‘truth’ in a central database becomes whatever that single entity wants the truth to be.
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What does it mean when we say that in blockchain, consensus determines the truth?
When enough miners and nodes area on something there is consensus amongst the majority and we agree that this is truth. -
How is this different from how truth is determined in a central database?
a databases can be created deleted or edited or hacked and may not determine the truth the same as if the database was agreed upon by many people and it was unchangeable
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- every node needs to verify & agree on the transaction, so no one entity is trusted for whats true
- with central databases, a dishonest entity can make changes after a transaction has been submitted
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- What does it mean when we say that in blockchain, consensus determines the truth?
Consensus is achieved by multiple parties agreeing on new transactions.
2.How is this different from how truth is determined in a central database?
Central database is controlled by few and most of users doesnt have right to decide what is true
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1. What does it mean when we say that in blockchain, consensus determines the truth?
It means that a trustless system is adopted because an entire network of computers/ several parties can verify the transactions.
2. How is this different from how truth is determined in a central database?
Centralised databases are not incentivised to be transparent and to ‘play by the rules’, so the lack of verification conceals the truth in how they really operate.
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- Basically all nodes in blockchain verifies transaction going through and determine whether its true or not.
- In centralized database on one party verifies transaction whereas in blockchain multiple nodes verifies source of truth
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It means that when a consensus is found, everyone agreed to say that is the truth
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In a central database, one entity says what is the truth, whereas in blockchain the truth is determined by everyone.
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- What does it mean when we say that in blockchain, consensus determine the truth?
it means if a transaction is not agreed by the whole network ,it will not be agreed to include on blockchain. every one tell the truth, cause it’s public ,everyone can verify the network.
- How is this different from how truth is determined in a central database?
in a central database , it don’t need the whole network to accept just some authorized controller to decide ,so it’s not decentrazlied it’s not trustless.
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Homework - Consensus
- What does it mean when we say that in blockchain, consensus determines the truth?
Multiple parties are incentivized to state the truth in agreement. It becomes more costly to lie or cheat, and the rewards are to those who agree.
- How is this different from how truth is determined in a central database?
In a central database, truth is based on TRUST and is often not able to be seen or known beyond what one party or stakeholder chooses to reveal. Others have no way to know if they are being told the truth unless or until there is some specific motivation to compel third-party audit.
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Consensus determines the truth through financial incentives where networks of computers must come to an agreement and confirm/verify that the transaction or information is correct before it is accepted and added to the blockchain.
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A central database is different in that you must “trust” that the information or transactions given are true.
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Consensus is all the suppliers data on the blockchain interacting with one another to determine if something is true. Financial incintives are put in place to insure that it is in everyone’s best interest to be honest. A participant that is not honest will not be validated by the others, causing them to loose money.
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With a central database truth is determined by trust of one on one communication rather than every incintivised supplier being checked simultaneously. With this trust system there is lots of room for deception and monetary gain.
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it means that through blockchain and validating of nodes it doesn’t allow for data manipulation as the network has to come to a consensus.
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In a central database someone has control and can manipulate the data.
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1- Consensus is a group agreement that there is truth within the participants.
2- This consensus is based on incentives and less on word of mouth and trust.
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In blockchain, the truth isn’t dictated by one entity, it is only achieved when there is consensus. Many different entities have to agree on something before it can be accepted as truth.
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This differs from centralized databases because the owner of the database insists that the information on it is factual, and it is practically impossible to verify that it is.
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