Homework on Consensus - Questions

Blockchain and Bitcoin 101
#6029

Ans.:

  1. a network of decentralized computation nodes provides the trustless verification

  2. the owner of a central database may select the information sent to the auditing service, but the consensus is built on a network of verification nodes that confirm every transaction in mathematic way and get incentive reward

1 Like
#6030

Homework on Consensus - Questions

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

In Bitcoin, each and every node confirms the validity of each transaction in the mempool. Reaching consensus on average every 10 minutes.

Because of strong network incentives to be an honest participant, reaching consensus on every block is the same as confirming the truth. Honest valid transactions will be send. And dishonest transactions will be discarded from the mempool.

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

In a central database, there is a central database administrator that you need to trust. A central database can be edited at will. Therefore, you need to trust the third party to reflect the truth in the database.

2 Likes
#6031
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    Consensus is a mechanism played by each blockchain node that confirms the validity of each transaction. It’s the the trestles verification.
  2. How is this different from how truth is determined in a central database?
    Only one stakeholder checks and confirms the validity of one transaction on a database.
2 Likes
#6032
  1. What does it mean when we say that in blockchain, consensus determine the truth?

a decentralized peer-to-peer system with no central authority figure. While this creates a system that is devoid of corruption from a single source. Consensus is the agreement of the net work on state changes based on most recent transactions. If the network agrees a transaction is good it gets added to the ledger and if the network finds it to be false it gets discarded.

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

  2. In a central database a single copy database copy or single individual chose what is truth. If the database is corrupted then truth is altered.

1 Like
#6033

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    If the transaction has been mathematically verified and proved possible by multiple nodes in the network that is consensus and the transaction must be true in that case

  2. How is this different from how truth is determined in a central database?
    More than one entity is verifying and also verifying in real time whereas in a central database transactions are verified once and added so there is no double checking (except afterwards in audits if there are any)

1 Like
#6034

All that are participating on a blockchain are getting paid and they are getting paid for the truth. There is no reason to lie to get into blockchain the wrong information.
In a central database, someone can have greater power for a decision and can impact also others.

1 Like
#6035

  1. Consensus means a general agreement. A network of computers (ledgers) would need to decide if a new transaction makes sense or not.

  2. Consensus is built on top of incentives. Every network on public ledger are incentivize to be honest or determine if the a new transaction makes sense or not.

1 Like
#6036

  1. Because transaction has a copy of the public ledger so it is impossible to lie about something. It will stand out and won’t be accepted.

  2. It is possible to hide/delete things in the central database. One person can say something and it has to be trusted. In a blockchain everything is open to the public.

1 Like
#6037
  1. the blockchain determines “truth” via consensus protocol where everyone must agree upon the information received.
  2. In a central data base it has the authority to decide the truth.
1 Like
#6038
  1. Consensus will verify that your transaction is allowed, if it aligns to the data in each block in the group which contains the source of truth
  2. Central database only has one source of truth and one source of verification
1 Like
#6039
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Blockchain is a public ledger - network, it means if new transaction will come, and all will verify and agree, its truth or other way around and it is done by incentive.
  2. How is this different from how truth is determined in a central database?
    In central database, there’s always third party dictating rules, making decisions what is right or not.
1 Like
#6040

  1. Consensus determines the truth means that multiple nodes in a blockchain network have come to an agreement that a new transaction is true or false.

  2. In a central database the truth is not verified by multiple parties in a network but trust in the one central database.

1 Like
#6041
  1. What does it mean when we say that in blockchain, consensus determines the truth?

A blockchain is a digital ledger. Each block produces a unique hash that identifies the transaction. If one entity tries to change transactions then a totally different hash is generated then this will prove as evidence of an invalid transaction. In a nutshell this shows if its truth. Another thing is through incentive.

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

Blockchain differs from a traditional database in the way data is stored. As new data is entered (in the form of transactions) its contained within a fresh block. Once the block is filled with data (or reaches its block size) ‘it is chained’ to the previous block fusing the data together in a chronological order.

A traditional database would have a central authority figure and it could be deleted. In a blockchain it is public and open to scrutiny.

1 Like
#6042

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It’s validated by the network

  2. How is this different from how truth is determined in a central database?
    It’s not an open network.

1 Like
#6043

1 - Various independent nodes are required to verify and agree transactions/additions to the blockchain. Truth is found in the consensus or agreement between those nodes. in Blockchain technology, mining is incentivised, this means that the process of agreeing and verifying the authenticity of a transaction is monetised. People like money.
2 - A centralised database does not rely on a consensus mechanism across various nodes within a network. It can be altered and there is no incentive to external parties for checking the authenticity of transactions.

1 Like
#6044
  1. What does it mean when we say that in blockchain, consensus determine the truth?

It is used to verify the validity of a claim and removes the need to trust. “Don’t trust. Verify”

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

Central databases can lie and are alot harder to verify a claim. The consus network is decentralized and requires everyone to verify the validity of the claim. Also Central databases can be altered where as a consensus on a blockchain is immutable.

1 Like
#6045
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Blockchain is a public network, whichthe new transactions will only be added to the blockchain, after they are verified and agreed by the nodes of the network. The use of verification of the validaty, removes the need to trust. The consensus of the network tells if it’s the truth.

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

Central database involves third partty’s, which, if neccassery, can handdle on there own benefit. Besides that, in a central database there is less need for playing by the rules (incentive) if you can gain benefit by cheating on the rules. This makes it harder to trust because most of the time it is not an open network.

It is also not verified by multiple party’s, but by trust in one central database.

1 Like
#6046

Hi everyone,

My answers to the best of my understanding/knowledge:

  1. It means that the truth is what the nodes agree on. It is not enough to have one node, one person, or one company in the case of food chain supply, to claim something is true. The other nodes, who also have the information (about transactions or in the case of the food chain supply about the the ingredients they provide for example) need to agree with it. There are incentives to make sure they agree only if they know it is true based on the information they also have.
  2. In a central database there could be an information which has been edited and controlled centrally (by one person, a small group, a company, etc.) and is not accurate. It would be considered true while really it is not.

Cheers
Selim

1 Like
#6047

  1. It means that consensus validates what someone has done within the network. People can verify that the person was telling the truth.

  2. This is different from how truth is determined in a central database because with consensus their are incentives to tell the truth whereas in a central database one entity can control everyone else and if they say something is true they can force the others to agree.

1 Like
#6048
  1. The network decides if the transaction is valid or fraudulent through a set of rules
  2. In a central database the truth is decided by a single authority whereas in blockchain it is thru consensus
1 Like