Homework on Consensus - Questions

Blockchain and Bitcoin 101
#6069
  1. What does it mean when we say that in blockchain, consensus determine the truth?

several nodes/validators are used to determine what is a valid transaction on the blockchain.

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

One person or central body of authority will determine what is true and what is not, and we have to have trust that they do the right thing.

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#6070
  1. All transaction in blockchain needs to be verified by a set of rules and all the peers in the network agreed upon the verification to include the new block into the blockchain. This ensures not an individual but the multiple decision makers contributes to determine the truth.
  2. In centralized database, anyone (trustworthy) can alter or add a transaction which override the actual truth, whereas every transaction in the blockchain is verified (not trusted) and agreed by multiple decision makers (consensus).
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#6071

  1. With Consensus, all the different parties (nodies) have to agree and accept a transaction or truth. They have to come to the same consensus or agreement to add new transactions and info to the blockchain.

  2. With a central database, only 1 central party accepts or changes information and data. It is not trustless, because you are depending on one party or central company.

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#6072

What does it mean when we say that in blockchain, consensus determine the truth?Once the transaction in blockchain, the entire network has to agree.

How is this different from how truth is determined in a central database?There is one authority and they can change the data.

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#6073

1- This means that Economic incentives achieve consensus among all nodes contributing to the network’s security.

2- There is no distributed ledger throughout the nodes with economic incentives in a central database.

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#6074
  1. What does it mean when we say that in blockchain, consensus determine the truth?

The de-centralized consensus protocol provide trust and guarantees that the information stored are true.

  1. How is this different from how truth is determined in a central database?
    The protocol is transparent, code-based and doesn’t require trust in any single individual or entity
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#6075
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Consensus is an automated process to ensure that there exists only one single valid copy(one one truth) of record shared by all the nodes in the blockchain.

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

In a central database, truth is determined by the owner and can be changed at anytime. However, consensus protocol makes sure that every new block that is added to the blockchain is the one and only version of the truth that is agreed upon by all the nodes in the blockchain.

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#6076
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    Blockchain consensus determines the truth mathematically by communicating with all the nodes on that network.
  2. How is this different from how truth is determined in a central database?
    Centralized databases are not immutable so the truth is whatever they say it is, we have to take their word on their full faith and credit.
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#6077
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Blockchains are comprised of a network for computers (nodes) where each computer holds a full record of the entire blockchain, changes/ new records on the blockchain are validated by each computer on the network, before a new transaction gets approved and added the the blockchain. This mechanism is defined as consensus, without complete consensus no transaction on the blockchain gets approved.
Consensus removes the reliance on trust and through its structure makes it impossible to compromise the truth.

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

Central databases do not have a consensus mechanism, they can be altered and compromised by any party that has access to the central database or anyone who hacks into a database to falsify records. They also don’t retain a full transaction history, i.e. edits can be made without leaving a record trail.

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#6078

Consensus:

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Each transaction to be added to the blockchain is determined by reaching a consensus across all computers in the blockchain network.

  2. How is this different from how truth is determined in a central database?
    In a central database, there is no such concept of verifying that the information written is true.
    The operator who has got the rights to write to the database can write anything, even when is it wrong.

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#6079

  1. The blockchain does not simply allow one version of truth to be added to a single block on a single node it verifies the truth through all blocks and all nodes reaching consensus.

  2. A central database can have information amended or omitted by a single or group of actors within a central authority and trust is required to accept the authenticity and accuracy from who provides authority and those authorized with limited or no external verification by other centralized independent regulative bodies. All are corruptible.

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#6080
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    For a transaction to exist on the blockchain, it is checked and verified by a global network of computers that communicate with each other. The different nodes need to come to an agreement on whether or not transactions should be accepted on the blockchain. As verification is not reliant on a single source, it is impossible to cheat the system.
  2. How is this different from how truth is determined in a central database?
    On a central database, records of transactions are susceptible to manipulation by the record keeper.
    In this scenario, reliance on the validity of the data is based on trust.
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#6081
  1. in a blockchain, there are no central authorities. The state of the blockchain or “truth” is arrived at by nodes or computers in the network agreeing in truth by verifying the transactions themselves
  2. In a central database, the “truth” is established centrally and the nodes have no say in this process.
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#6082
  1. In blockchain when we say consensus determines the truth what we are saying is that thru a trustless network we can verify weather or not a transaction is honest or playing by the rules.

2.Truth determined in a central database has no way for someone to look into who that consensus was reached and you are forced to rely on your trust for what the central database is saying.

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#6083
  1. What does it mean when we say that in blockchain, consensus determines the truth?
    Consensus is based on all of the computers verifying transactions agreeing that a transaction is legitimate. The Blockchain incentivizes truth so all computers (miners) are incentivized to ensure the decisions and transactions put on the blockchain is legit and true. The transaction doesn’t go through until everyone is in agreement and consensus is reached. Everything that goes on the blockchain is there forever and any claims made can easily be verified through the Blockchain. The Supply chain example in the video is a great example.
  2. How is this different from how truth is determined in a central database?

A central database is created and verified by someone who generally has a bias towards making the database info as favorable as possible towards their ultimate agenda. They can leave out important information and no one who is outside of that centralized authority can dispute it all they want, but it’s not going to change it. Right now, the world is incentivized, IMO, to try to cheat and cut corners in business by using accounting tricks and fudging the numbers is various ways to increase revenue and make things look better than they are.

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#6084
  1. It means the information has been verified to be correct and honest so it’s true.
  2. A central database can be instructed on what information will be provided and can leave out certain aspects of what is the total truth of information be sought.
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#6085

1.Nodes collaborate to verify transactions are legitimate and correct to the rules of the network before being added to the blockchain. The nodes on the network share and broadcast the same information, therefore reaching consensus.

2.Authorities are in control. data can be added or taken away to fit the owners truth therefore having no trust

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#6086

  1. We are incentivized to tell the truth and punished if we lie. We cant follow the chain back and verify rather than trust.

  2. We cannot verify on the public blockchain, we would have to trust the central data is telling the truth.

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#6087

Homework consensus

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

It means that there’s a growing agreement between the letters on the blockchain network verifying if something Ora transaction is made.

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

The difference is that the truth in a central database is determined by one person or company that has the possibility to alter the data in their database. While in the blockchain it gets verified by a lot of ledgers that are not able to change their database.

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#6088

  1. Trustlessness means that you don’t need to trust anyone, because the truth can be traced. Consensus is the verification of data between participants and proves that it is true if it is same for everyone. Consensus is reached by incentives where there is nothing to gain but more to lose in lying about the data thus if there is consensus it is true.

  2. In central database you have to trust the governing body of that one database.

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