Homework on Consensus - Questions

Blockchain and Bitcoin 101
#5245

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    basically network of validators agree what is true and what not, this is run through incentives as the validator network is rewarded to find true transactions and add them to the blockchain and on the other hand rough validator is punished for not being honest.

  2. How is this different from how truth is determined in a central database?
    In central database with central control if somebody with sufficient access decide to add false info into database he can do so, which is the difference compare to decentralized database as blockchain.

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#5246
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    It means that in blockchain every transaction is verified and double checked. All participants in the network must agree with a transaction that is added to the blockchain. This agreement is only achieved through consensus, which is motivated through monetary incentives.
  2. How is this different from how truth is determined in a central database?
    In a central database, the owner adds and removes information at will with no verification nor double checking. The truth is what the owner of the database says it’s true. Consensus in bitcoin blockchain is a perfect way to unite all kind of people because everyone wants money; if a validator does a good job, receives money but loses when wrongdoing
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#5247
  1. By agreeing to accept valid data (or agreeing to reject false data), all the nodes on the blockchain determine together whether or not a transaction is confirmed (deemed “true”) or rejected (deemed “false”).
  2. Ina. central database, the central authority (one person or entity) determines what is true while many are left without a say in the matter.
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#5248

In Blockchain, consensus determines truth by incentivizing the the members of the network to be honest, and verify all new transactions, through financial means.

In a central database, truth is determined by an individual or company that controls the database, rather than by the group. Thus the “truth” has no oversight and can be altered.

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#5249

The interaction between the system nodes validates a good transaction or bad. if good it gets added if bad it is discarded.

People do the data entry on a database it can be manipulated but we are to trust it wont.

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#5250

In the blockchain, all parties, each and everyone confirm and agree on the truth compare to central database, everyone trust the main party who tell them what the truth is.

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#5251

Censensus is the process of verification of provenance . Provenance refers to the ledger having the information (transaction data in real time )consensus the verification
of that information. It differs from a central database by utilizing
financial incentives for uniformity.

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#5252

1: For a transaction to be validated, the whole network of nodes has to agree wether the transaction is valid or not. So only if there is a consensus among all the nodes, a transaction can be validated. This means that consensus determines whether transactions are valid or not, and in other words, this means that consensus determines the truth. Also, for a node to make money, it needs to make sure that it operates by the rules. Everyone wants to make money, so all nodes will only accept legit transactions. This makes sure, if all nodes do this together, that nothing but truth is achieved.

2: In a central database, changes could be made by 1 person, regardless of what other people think. As people who validate the information in central databases do not have to have consensus and as they do not win money only by telling the truth, it is impossible to reach the same level of trustlessness as we reach in blockchain.

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#5253

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    The different nodes will agree on a decision that a certain action is legit. As long as the smart contract requirements are met the majority will agree and consensus will be achieved and approval given to proceed.

  2. How is this different from how truth is determined in a central database?
    It is different because the above is trustless, determined by the decision of the majority and determined by rules and coded requirements. That is not the case of a central database controlled by one entity that acts as the middleman.

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#5254

  1. It means that many nodes have agreed on a transaction in order to verify it was real.

  2. It is different from how the truth is determined in a central database because by using blockchain people have financial incentives to be honest about what happened in the transaction and multiple nodes are verifying the transaction while in a central database one person decides what is true. Therefore they could manipulate transactions.

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#5255

  1. Consensus determines truth because all machines on a blockchain network need to come to an agreement on accepting or rejecting a transaction

  2. In a central database, truth is determined by a single party, the entity that owns the database. No external validation is required.

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#5256

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Transactions are verified by all nodes at the same time forming a consensus, nodes are motivated to tell the truth with financial incentive.

  2. How is this different from how truth is determined in a central database?
    Decentralised blockchain databases are trust less, requiring consensus through a public network, centralised databases rely on those who control it to be truthful.

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#5257

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    All decisions are made by the network, if a transaction is aproved, it will be written in the blockchain and therefor becomes the trutz. Its all about removing trust, the network verifies any transaction. Everthing is transparent.

  2. How is this different from how truth is determined in a central database?
    Central databases are depending on trusting a central party. Blockchain replaces trust through consensus.

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#5258
  1. The consensus determine the truth because the transaction is accepted only after all the computers in the blockchain validate it.
  2. The truth in a blockchain is accepted by all the participants ,whereas in the central database the truth is dictated by a single central authority.
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#5259
  1. Consensus determines the truth in blockchain with easily verifiable data that many validators benefit from by being honest.
  2. Central database we see today make resolutions in contracts more difficult to verify as each entity in a contract has their own information not easily seen and verified by the everyone.
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#5260

  1. It means that the network is agreeing that the transaction is valid or true. The network players are incentivized by earning money to validate “truth”

  2. In a central database the owner of the information is simply telling us that something is true and we have to trust them.

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#5261

1 There is more computers with copy of data (ledger) that checks each other if the data is true.
When all the ledgers approve the information we get a consensus.

2 Central database is accessible only by those who are authorized to access it and can tamper with data

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#5262

Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    -Due to the nature of decentralization, the individual nodes must, together, reach a consensus for what is to be classified as true within the blockchain ledger.

  2. How is this different from how truth is determined in a central database?
    -A centralized database determines truth based on its own individual consensus, a concept as asinine as asking the police to investigate themselves.

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#5263

  1. Through the broad network of users/computers everyone has to all items are actually true and correct otherwise the group will not come to consensus or agreement that the thing being be validatied can be added or allowed.

  2. Here the network as a whole will decide what is allowed and what is not allowed or considered to be true, in a central database the you only need one person or one computer to determine what gets allowed or accepted to be true.

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#5264
  1. We know that several parties (i.e in this case computers) are involved and truth/decision needs to be validated by all parties to provide consensus in the decentralized network.
  2. The truth is not based primarily on trust. The truth in a decentralized network is based on the consensus, which is assured through (financial) incentives to be honest
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