Homework on Consensus - Questions

Blockchain and Bitcoin 101
#5426

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

Consensus is the method and rules used by the blockchain network to determine the true state of the information held by the ledger. Each individual node on the network must agree that the state of the information held locally is “true”. This is achieved through POW (proof of work) mining, a system where the node proposing a new block must provide the solution to a cryptography problem. Once this problem has been solved, and validated by at least 51% of the other nodes on the network, the block is added to the blockchain. If the new block being proposed has information that has been doctored in some way, validation will fail, and the block rejected. This will result in real term financial loss for the individual node seeking to enter a doctored block.

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

In a blockchain, the system is “trust-less”, and transactions verified across the network by independent nodes. This requires no central administration to enforce rules and make decisions regarding provenance and consensus. With a central database, the information is stored locally on data storage systems, and anybody who has access to that data storage system can enter fraudulent information into it. This results in the database being wholly dependent on the honesty of the administrators and organization that service the database, and as a result, the data you entrust to a traditional database then becomes dependent on a high level of “trust” in the administrators.

1 Like
#5427
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    If a transaction can be verified as accurate by multiple sources it becomes accepted as truth in the database. If any sources indicate the transaction not to be valid, it does not become a part of the database. It is a trust less process
  2. How is this different from how truth is determined in a central database?
    In a central database the data is considered to be true as determined by the caretaker of the database and not by an independent source. This requires trust in the individual(s) who control the data.
1 Like
#5428
  1. Consensus within the blockchain is determined by computers verifying all the transactions and agreeing if a transaction is to be accepted into the blockchain.
  2. A central database relies on trust of a third party without consensus from everyone else.
1 Like
#5429

  1. If someone is looking to make a transaction for example, all nodes in that network must agree or come to a consensus that that those funds are available for example. This in turn is what gives blockchain its decentralised status.

  2. Truth in a central database is totally based on trusting that the information within this database hasn’t been manipulated or incorrectly stored.

1 Like
#5430

  1. Consensus determines truth by not only keeping track of all transactions leaving anyone able to check and verify the transaction, it is reviewed by nodes that check to see if the transactions is correct and not fraudulent and then agrees to add it into the blockchain. No matter what happens the truth is in the pudding, you just have to check.

  2. Central databses do not allow outside approval of a transaction simply which gives the customer the choice to “trust” or not to “trust”. You are in ways forced to comply and give them the benefit of the doubt on whether it is true or fraudulent.

1 Like
#5431

  1. In a blockchain, consensus is determined between multiple computers, or nodes, to verify the truth of a record. These nodes are financially incentivised to do so, so work together to solve this common query.

  2. In a central database the central authority controls the record of information, therefore this is open to be corrupted.

1 Like
#5432
  1. Consensus determinates the truth, by checking in the Blockchain and agree together to the incomming Transaction and accept it then, simply by verifying only what matches with the Blockchaindatas and what makes sense. Its Trustlesness.
    2.The difference is, that in a centralized Database the Truth is determinated by the owner.
    That means you have to Trust.
1 Like
#5433

1 The majority agreement make the difference, which is Consensus motivated by incentive.

2.On a central database, only one user is needed to change data, and therefore that truth is not
consensus

1 Like
#5434

A1. In blockchain, the entire system is composed of nodes or participating members who determine whether new transactions are true or not. In other words, they verify new transactions in consensus because there is no central authority to do it instead. Every participant is incentivized financially to reach consensus as a moving trust.

A2. This is quite different from traditional system in which a central database determine the truth. In the central database, the consensus process is not necessary because its owner or authority of power alone determines whether to accept new transactions or not.

1 Like
#5435
  1. In blockchain, consensus determines the truth through a network of computers holding the same data. Nodes have to come to an agreement and verify what is on the block.
  2. This is different from how truth is determined in a central data base because not everyone in a central data base plays by the rules. Therefore never truly achieving consensus through verification because its built on trust.
1 Like
#5436

  1. What does it mean when we say that in blockchain, consensus determine the truth? Multiple parties agree upon the settlement of a transaction.

  2. How is this different from how truth is determined in a central database? Central databases only maintain one “truth” which has the potential to be corrupted.

1 Like
#5437
  1. they can reach a consensus in which all the data is a decision made by all the nodes with the verification of all of them to reach the truth.
  2. in a central database the data have to be trusted cause it comes from an unique source, so we have to trust that source and maybe he gets the information from different sources and one of them has wrong information or is lying, so we end up trusting in wrong iinformations.
1 Like
#5438

  1. Consensus is the agreement between computers within a network that a particular transaction is true. If there is consensus that a transaction is true, it can then be added to the blockchain of transactions. The participants are incentivized to verify and reach consensus when adding it to the blockchain.

  2. This is different in that centralized databases do not require the verification by consensus from multiple computers, instead a single centralized actor can add and modify transactions in the ledger. There is no incentive for maintaining truth or for consensus. The “truth” is only what a centralized party says it is and is beyond verification by consensus.

1 Like
#5439

  1. Provenance is bulit on Consensus, and consensus is not based on what you said, therefore I trust you. But rather can I verify what you said with other sources. In this way, it is trustless. Consensus also incentivises truth-telling. Therefore they will want to tell the truth because they make more money.

  2. In a central database, it is hard to verify the data independently. The central authority determines the truth that is difficult to verify.

1 Like
#5440

1; consensus determines truth because the whole network (of stakeholders) reviews and approves the transactions according to agreed parameters and who are incentivised to be truthful and honoust.
2: central databases are usually managed by some (or more) people within 1 organisation who also determine what is the truth or not.

1 Like
#5441

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    it’s away of proper verification, takes mutual agreement between different nodes hence built on incentive to tell the truth.

  2. How is this different from how truth is determined in a central database?
    With a central database truth can be determined on a monopoly basis which is not fully trusted like it is with consensus where several parties has to take a mutual agreement.

1 Like
#5442

1.consensus influences the veracity because of economic inducement

2.A central database is centralised so the truth of the database is in the hands of the entity that owns the data. That entity itself or owner can manage, edit, delete, add, manipulate the data amongst other things

1 Like
#5443
  1. What does it mean when we say that in blockchain, consensus determine the truth?

All transactions in a public ledger must be verified by all “participants”. This agreement between all of them is considered a consensus. Therefore if there is consensus between all participants in the blockchain, this means a certain block is verified by all of them, then this becomes the truth.

  1. How is this different from how truth is determined in a central database?
    In a central database there is no consensus requirement, the owner of the database defines the truth.
1 Like
#5444
  1. Every computer on the network verify the data and say if it is true or not.
  2. No need of trust in a single person or organization who can decide what is true, because the data is verified many times in different nodes.
1 Like
#5445
  1. This means that it is true because it can be verified by the network that it is true. Zero trust
  2. In a central data base it is not verified by the network and you have to trust that what they are saying is actually true.
1 Like