Homework on Consensus - Questions

Blockchain and Bitcoin 101
#562

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    Because consensus is built on the top of the incentive, which stimulates people, to tell the truth.

  2. How is this different from how truth is determined in a central database?
    Because in blockchain all the network is the proof of truth, which is decentralized.

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#563
  1. In the blockchain every transaction/claim must be aproved by all nods in the web through verification, therefore he truth will be agreed in consensus.
  2. The truth determined in a central database is not subject of verification by all nods, nor it’s raised by collective agreement, thus it can be maipulated.
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#564
  1. By removing trust with many nodes or computers you verify transaction or truth, and if something is not verified it gets discarded.
  2. It is different by trust, a central data base wants you to trust what information they put out is correct,
    while in blockchain consensus determines truth.
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#565

Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
  2. How is this different from how truth is determined in a central database?

Answers:

  1. With consensus, a transaction is sent and the entire blockchain network verifies the transaction and then records it on the blockchain.
  2. With a centralized database, we would need to rely on the central authority and accept that what they are saying is true. An example of how this works adversely would be something such as the following: Wells Fargo illegally opens over 1 million accounts in a different category of their existing customers to show growth and expansion to help their earnings look good when reporting, but this ended up being false. We trusted them when in fact they were lying about their results.
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#566
  1. because different/more parties have to decide/agree
  2. decisions are double checked from different ledgers.
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#567

  1. With a network of client nodes that are paid to tell the truth and all transactions are visible to every node instead of a central governance. Then you know what truth is because the network of witnesses is without dishonesty and does not require trust because it is just truth.

  2. Central truth is what the soul governing body says it is and if it is dishonest from the root then all that is built upon it will eventually lead to dishonesty or be tempted to be.

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#568
  1. Consensus = Truth.
    By way of all participants securing the network agree that what is being presented is true and can be verified and then and only then will there be a agreement to add it to the block chain.

Agreement = On chain entry
Disagreement = No Entry

  1. In a central database it is a closed system and it is operated and controlled by a person or entity and can add and delete what it wants at anytime and nobody third party ( party’s) has the opportunity to verify the truth of such entry
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#569
  1. What does it mean when we say that in blockchain, consensus determine the truth?- Blockchain promotes trustlessness and consensus through incentives. So blockchain provides incentive to system to tell the truth. It removes trustness and promotes verification of each transaction.
  2. How is this different from how truth is determined in a central database? i think in central database, few individuals control the datbase and can manipulate it and collude with each other to change the data for their personal profit.
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#570

1.) It means that if all the computers are not in agreement it isnt true ,therefore they havent come to a “concensus” and the transaction will be denied .
2.) In a central database the data can be altered or manipulated and theres no one that can repair the false data .

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#571

  1. The consensus algorithm is used to determine and distribute the latest valid block.

  2. In a central database, there is single source of truth.

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#572

  1. Multiple nodes have exactly the same information as every other node, the same computational power and the same incentive to work towards the same target governed by a set of unchangeable rules and processes mathematically governed. This creates a flattened or egalitarian management structure.

  2. Truth is determined by a hierarchy of decision makers according to rules/traditions that may or may not be changed at any time. These classifying/compartmentalising processes may or may not be public, even if they are they are still open to abuse by internal or external actors and influences.

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#573

  1. All participants in the blockchain (nodes) agree on the state of the ledger and e.g. check if a person has a certain balance before he is allowed to send that amount.

  2. The big difference here is that, it is trust less, you don’t have to trust a certain party like it is with a centralized data base. Also the consensus is achieved by incentives.

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#575

Homework on Consensus - Questions

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

The decision making power is not relying on a decentralized authority.

When a transaction is made, all the parties involved use a verification that relies on math to agree if the transaction will be added to the ledger or not.

The validation of a transaction relies on the decision of the network of nodes about the provenance, this allows trus-tlessness.

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

In a central database:

A central authority can modify or add the information it wants to add. It’s impossible to verify the reality of the information on a central database.

You can then only rely on a trust-based relationship towards the information that is given.

In blockchain:

You can behave trestles in any information given on the blockchain, as it is immutable, and verified by a mathematical formula, you can now be 100% sure that the information that show up on the public ledger is correct. (provenance)

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#576
  1. Consensus is the result of a final decision made by multiple parties. In the blockchain network, every information is known, verified and confirmed by each party. Which means everyone has access to everyone’s information. So a corrupt information is very likely to be removed from the database thanks to the numerous verifications helping businesses be transparent.
  2. The central database can be easily corrupt. Nothing or no one else can verify the truth which means that consensus could never happen.
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#577

1 Consensus decision-making is a group decision-making process in which group members develop, and agree to support a decision in the best interest of the whole. Consensus may be defined professionally as an acceptable resolution, one that can be supported, even if not the “favourite” of each individual. Consensus is defined by Merriam-Webster as, first, general agreement, and second, group solidarity of belief or sentiment.

2 since it is centralized it does not have a group to agree and support on a decision. also the centralized database can be corrupted

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#578
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    People gain money by being honest. And everyone wants to make money and this is the biggest consensus. So if people are incentivated (from money) to be honest and say the truth throughout validating or nothing a transactions, this means that the entire blockchain is determining the truth throughtour consensus.
  2. How is this different from how truth is determined in a central database?
    In a central database truth depends from a person or a software who is validating the transaction (in case of crypto). If a product is determined to be organic or not from an organic certifying entity this mean that this entity is the source of truth in that environment.
    Completely different approach from blockchain.
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#579

  1. It forces or better said it incentives the machines in the network to admit on the same correct answer.

  2. In a central database only one entity can say that a certain value is correct, usually is the entity that is creating the database. In a decentralized database the correct value it is “approved” by more than one entity in the network, therefore the machines are incentives in admitting only the true value.

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#580

  1. All participants in a blockchain must agree on wether a transaction is true or false. Only when everyone agrees, consensus is achieved and transaction is added to the blockchain.

  2. In a central database, public or not, there is no real control of what is added. Any information in the database can be added as long as you have the permission to add transactions and transactions are made in accordance to the rules of the database.

1 Like
#581

  1. People are inherently selfish. Don’t fight it … accept that it’s a fact if life. If people are given the opportunity to cheat, often there will be cheats. If there is a certain risk of being caught - these cheats turn into model, truthful, wonderful people.
    Consensus on the blockchain maintains verifiable, undeniable truth. A valid transaction will be verified through consensus yet an ‘imposter’ transaction will be disgarded.

  2. A centralised database requires trust for it not to be altered / corrupted. An entity’s the ability to make changes.

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#582
  1. The consensus will say, does this transcation make sense or not. Is it accepted by the network ?
  2. By a central database it is possible to cheat, because one person or a little group can confirm a transaction or not.
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