Homework on Consensus - Questions

Blockchain and Bitcoin 101
#5326

Homework - Consensus

  • What does it mean when we say that in blockchain, consensus determines the truth?
    A consensus algorithm is a mechanism that allows users or machines to coordinate in a distributed setting. It needs to ensure that all agents in the system can agree on a single source of truth, even if some agents fail.

  • How is this different from how truth is determined in a central database?
    The primary difference between a blockchain and a database is centralization. While all records secured on a database are centralized, each participant on a blockchain has a secured copy of all records and all changes so each user can view the provenance of the data. The magic happens when there’s an inconsistency — since each participant maintains a copy of the records, blockchain technology will immediately identify and correct any unreliable information.

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#5327

1.It means that a consensus is needed by the network to determine if the transaction will be accepted or denied and they are incentivized to tell the truth.

2.In a central database one person or entity can control what is accepted or denied without consensus which leads to corruption.

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#5328
  1. The nodes verifying the latest transactions are verifying the transactions based on the same predetermined ruleset. The majority of these nodes determine the tx to be valid or invalid.
  2. Central databases (even if they are sharded) are considered a single entity because they are governed by the same company, so the concept of consensus does not exist.
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#5329

1)it means that the truth is decided and agreed on collectively by the people
2)in a central database there’s a central authority that decides the truth

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#5330

  1. Blockchain and consensus make it very difficult for someone to cheat when there are to manu other people in the network that can either confim or deny the claims made.

  2. Centeralized databases are not open to the public and many times even to the people in the deal because they are hidden behind a wall of “trust.”

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#5331

All nodes share the same blockchain data - one person trying to cheat will be iver-ruled by the majoruty, so consensus determines the truth, this is fundamental to the security of Bitcoin in that “the longest chain wins” , so attacks become prohibitively expensive.

A centralised databse has one (or more) administrators who could be bribed or coerced in to “changing the truth” as the db is not immutable.

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#5332

1)In blockchain to determine consensus refers to a network wherein there are multliple actors that collectively attest to an action being correct.
2) This is different from central databases because unlike central database blockchain network in decentralized and it becomes extremely hard for any central authority to influence or manipulate the truth as there are multiple users who are independent but also deeply interconnected.

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#5333

1.It means that the truth is determined through the agreement of the whole network rather than a central entity
2. In consensus, everybody/at least the majority needs to agree if something is true, whereas in a central system, the central entity holds all the power of deciding whether something is true or not. Thus, consensus enables trustlessness

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#5334

  1. This where no one entity is in control and would require the (consensus) a few people or entities to confirm and agree.

  2. Central databases are easily controlled and manipulated by a central entity or a person.

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#5335

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    All the nodes are verifying a transaction of data thereby reaching a consensus about this particular transaction whether it is truth or false. After consensus has been reached the transaction can be added to the block on the ledger or discarded if it doesn’t correspond to the truth.

  2. How is this different from how truth is determined in a central database?
    In a centralised database one entity is determining if something is true or not and everybody else needs to TRUST them.

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#5336

Homework on Consensus

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

When we say Consensus determines the truth, we mean that it can be reached by mathematically proving with a decentralized network of computers that the whole network agrees on something. This is done by the application of incentives, where all parties are encouraged to play by the rules and be honest in order to gain a reward.

Therefore, consensus completely removes trust from the equation and allows full verification of the truth.

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

This process is completely different from how truth is determined in a central database, where any and all truth is based on one set of data controlled by one single entity. This opens the door to lies being sold as the truth by complacency, corruption or hidden interests.

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#5337
  1. Consensus is done through a network of various computers which validates every each transaction.
  2. On a central database, truth is not verified. On the blockchain truth is verified by consensus, this is on the distributed ledger.
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#5338
  1. When majority of the nodes agree on a certain information introduced to the blockchain.
  2. Central database is not interconnected and cannot verify information.
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#5339
  1. What does it mean when we say that in blockchain, consensus determine the truth?

As explained in the video example, all suppliers must prove they are actually selling the products they are claiming in regards to quality, origin etc. This is all on the open ledger blockchain, so the supplier has to provide proof of quality of ingredients and the source. They can accomplish this by displaying their own supplier, or suppliers to validate that said products have been delivered to the producer. I believe this validation will be accomplished by scanning the codes of all products by suppliers into the blockchain, as they move from point to point, or terminals, using 5G, or GPS signals.

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

If a supplier doesn’t have the checks and balances of the blockchain open ledger, then they can easily manipulate and falsify their ingredients, or supplier, with no one to validate or verify the source of their ingredients. Wheras the blockchain does verify.

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#5340

1} Blockchain consensus determines truth because the decentralized nodes all have to agree and verify that a transaction is valid rather than trust which is susceptible to dishonest reporting.

2} One central authority has the power to edit and alter in a centralized structure

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#5341
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Decentralised (peers) nodes reach agreement by communication and verifying events and actions.
  2. How is this different from how truth is determined in a central database?
    In a typical centralized organization, a leader will make a decision and instructions are communicated down the hierarchy. In a centralized database, there is a central source inputting, analyzing and interpreting data. There is margin for error, risk of fraud and corruption. There is also a time delay requesting and receiving details in he database.
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#5342

Blockchain consensus means all the computer databases agree and we know they are incentivized to determine the truth.
Data in a central database is not incentivized to determine accuracy and can be manipulated.

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#5343
  1. It means that the majority of participants validated and agreed with new block content proposal, so the only valid proposition can be passed.
  2. Central database is supervised only by the owner of database who decides alone what is the truth.
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#5344

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus determines the truth because all data on the chain is verifiable, and transparent. Every node on the network can see, and verify, every transaction.

  2. How is this different from how truth is determined in a central database?
    Central databases allow for falsification and/or removal of transactions- neither of which are not based on any distinct ‘truth’. There is no consensus mechanism because there is only one party that holds any power. There are no tangible incentives to be honest.

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#5345
  • What does it mean when we say that in blockchain, consensus determine the truth?
    Each block is tested by those who are incentivised to verify that it is what it says it is.
  • How is this different from how truth is determined in a central database?
    With this system of verifications, each entity involved in the process (chain of events), once confirmed, is easy to locate and verify. These entities are essentially scrutinised by multiple checkers (nodes) who then agree if this is so.
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