Homework on Consensus - Questions

Blockchain and Bitcoin 101
#502
  1. It means that in blockchain by consensus that was agreed upon on the start of creating blocks, every node in blockchain gets it’s incentive and by that gets money and speaks “thruth”. Everybody gets peace of cake.
  2. It’s different because it’s decentralized, in central database only that database makes decisions, and in blockchain every node(database) is involved in decision making.
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#503
  1. It means that everyone on the network has to play by the rules. If someone is not honest his/her transaction will not be validated by the network.
  2. In central database there is a central party that determines what is true and what’s not. If the party is corrupted then the truth can be altered.
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#504

  1. We are saying that a majority of nodes in the network are in agreement to the state of their ledgers. This agreement is then considered to be the truth.

  2. In a central database we have to trust that the truth being shown to us is the real truth. This means trusting both the providers integrity as well as the providers security.

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#505
  1. What does it mean when we say that in blockchain, consensus determine the truth?

The truth is determined via consensus in a blockchain by leveraging agreement between all participants in the network. When all participants agree that a specific transaction or outcome occurred it is then “truth” on the network.

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

Truth in a central database may be determined by the person or entity who has control of the data. Therefore it could be altered in a way that does not reflect the truth. Truth in a decentralized blockchain based database can only be determined via consensus. The incentive structure of the bitcoin blockchain ensures that all participants are incentivized to record transactions accurately. I.e. person A has 1 BTC. They then send .5 BTC to person B. Now person A has .5 BTC and person B has at least .5 BTC. Person A can only send that specific .5 BTC one time to one person. This is recorded on the blockchain and cannot then be changed.

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#506
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    truth is based on decentralized databases
  2. How is this different from how truth is determined in a central database?
    truth is based on a centralized view that is almost impossible to verify
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#507
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Transactions are verified by multiple nodes that are incentivized to be truthful.

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

A central database is controlled by one person or organization that could be corrupted.

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#508

1/ What does it mean when we say that in BlockChain, consensus determine the truth. !?
The consensus on blockchain confirms the truth from one computer to another, they all have a copy of the blockchain public ledger,making sense of each transaction,to include it or not.
to have a consensus is to determine the truth of the transaction.
2/ How is this different from how truth is determined in a central database.!?
A central database is not Trustless, it relies on third parties to audit it, where as the BlockChain public ledger,
uses a cosnsensus of computers to VERIFY, each & every transaction,all decisions are being made together.

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#509
  1. The truth is decided and agreed collectively by the computers.
  2. Centralize database could be manipulated
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#510
  1. What does it mean when we say that in blockchain, consensus determine the truth?

It means that in to mutliple nodes in the network verify every transaction to determine that it make sense, then agree that this it a valid and a then add it to the block-chain.
Also the consensus incentives the nodes that act truthfully.

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

Centralized database only has one node or server application that validated any transaction made and user have to trust that it is doing its job. And unlike de-centralized ledger, the centralize database can be easily modified with the super user credentials.

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#511

Consensus is a very important future of blockchain; it is trustlees and always asking computers on the network to confirm a certain transaction or any other information before adding it to the blockchain or not. So we can say that it always checks all decisions double.

Trough incentives all decision are double check buy several parties on decentralized data base.

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#512
  • What does it mean when we say that in blockchain, consensus determine the truth?

It means that several different parties ( decentralized) are verifying the information and accepting / not accepting the transaction to the block.

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

The different is that in a central database only one party can verify and accept/ not accept transaction and it’s the only one who control the flow of information. no consensus no trustlesness

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#513

  1. When a network reaches an agreement with the new changes or recent transactions, we will reach a consensus. If network agrees that it is good, then that transaction will be added to the ledger.

  2. There will be no database that will determine the truth.

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#514

1/ What does it mean when we say in BlockChain, consensus determines the truth !?

The Consensus on BlockChain Confirms the truth from one computer to another,they all have a copy of the BlockChain public ledger, ´Does this transaction make sense or not…!?
different nodes come to an agreement, should we include this transaction or not…!?
It is being accepted into the network database. consensus is a big part of trustlessness.

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

Well on a central database you have to TRUST, whoever is behind the central database,( fertile ground for corruption ,manipulation, Goverments ).
A central database works on trust, a BlockChain public ledger, verifies a transaction through its Consensus ( trustlessness ) all decisions are being made together, General Agreement ! ( General Consensus ).

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#515

  1. In blockchain, consensus is an agreement or validation of a transaction by multiple parties, who are incentivised for validating a transaction.

  2. In a central database, the administrator validates the transaction. The validation of the transaction come from a single entity. There is a possibility for a single actor to amend a transaction, if there is an incentive to do so.

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#516

  1. because in blockchain you cannot cheat thanks to all the people that have access to all the transactions and that they can verify everything.

  2. The difference is that in a central database, only one party has access to all the information and that makes it possible for them to cheat because no one else than themselves can look at all the information so if something is false then we wouldn’t be able to tell the difference.

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#517

Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    That all participants in the network verify and agree that the transaction is true. Incentives are the motivation to work in the same direction.
  2. How is this different from how truth is determined in a central database?
    The truth doesn’t rely on a central single entity, it is spread out among all participants of the blockchain network.
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#518

  1. Consensus occurs when a majority of the nodes (miners doing proof of work) agree that a transaction is valid and it gets added to the blockchain. Once a transaction is added to the blockchain it is considered true.

  2. With databases the current state of the records is considered the truth. This is different than blockchain because a database is mutable, records can be modified at any point in time by a central authority such as a database administrator.

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#519
  • In reality every entity might have its own truth. To resolve this conflict, in blockchain, everyone agrees on a truth. This removes interpretation and gives the factual truth. The majority of people will always be incentivized to to be fair, to support the one truth.
  • In a central database, the entity having ownership of that database, is free to change data in his/hers advantage. There is no required majority of entities that is required to agree.
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#520

Because consensus is when many decentralized computers verify a transaction before its being added to the ledger and block-chain, thus reaching consensus

A database can be tampered with and changed because it is often used and located, stored, and maintained in a single location without verification from outside the network or other computers

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#521

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    In the end consensus means that the network decides whether something is true or false. The participants are forced not to cheat on this by beeing incentivised by the network

  2. How is this different from how truth is determined in a central database?
    It is different from central database because not only a small group decides if something is right. There is a hole network (nodes) which decides this in general

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