Homework on Consensus - Questions

Blockchain and Bitcoin 101
#6089

  1. A public blockchain is a network of many independent computers (users). When a transaction is made those users must confirm that it is honest. Therefore the truth (the validity of the transaction) is determined by network participants’ consensus.

  2. Centralized entities very often manipulate the information by hiding certain truths. Since the data is controlled by a single player, it’s quite difficult to prove that the truth provided is 100% honest.

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#6090

  1. Consensus determines the truth when it comes to blockchain, means that since it’s a public ledger all transactions can be viewed by all participants. No individual, can make any false claims because everyone can see as well as verify everything. Plus, financial incentives makes sure all involved are kept honest.

  2. This process is much different from a central database because there is zero transparency, you have to take everyone at their word a lot of trust is involved. This format does not hold anyone accountable for dishonest claims, and no penalties for anyone caught abusing their position terrible structure.

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#6091

  1. What does it mean when we say that in blockchain, consensus determines the truth?
    => Each node analyzes the transactions. If all nodes agree the transaction is valid (and they have incentives to act in the right way), then the transaction is accepted and the “truth” is established for these nodes.

  2. How is this different from how truth is determined in a central database?
    => In a central database, one administrator decides if a new piece of data will be accepted or not.

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#6092
  1. The computers work together to agree/disagree on whether a transaction is true.
  2. In a blockchain many computers will work together to verify and come to a consensus where as a central database requires a central authority to decide the truth.
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#6093

  1. It means that all participants in the network get to decide what is true. In order for a transaction to be successful, the network must agree that it is valid.

  2. In a central database, one point of authority gets to decide what is true and can withhold/alter transactions as they wish.

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#6094

[quote=“ivan, post:1, topic:8425, full:true”]
Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus is the verification of a transaction being added to the blockchain by thousands of minders/nodes. This determines whether a transaction is true or not.

  2. How is this different from how truth is determined in a central database?
    In a central database data can be altered, erased, or corrupted. Therefore the truth has to be trusted on a they said so basis. For example a clothing brand can lie and say they only purchase the most expensive raw materials. If their transactions are on a central database then only those who have access to that private database will know the truth of the transactions.

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#6095
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Multiple parties have verified and agreed on the transaction.
  2. How is this different from how truth is determined in a central database?
    In a central database, only one party determines the truth which leaves it susceptible to human error and dishonesty
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#6096
  1. What does it mean when we say that in blockchain, consensus determines the truth?

you cannot cheat with consensus as all the parties (the nodes) should agree about a certain transactions as they will all get their incentive ‘to be honest’.

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

in a central database everything can be manipulated as there is very often lack of transparency.

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#6097

1.What does it mean when we say that in blockchain, consensus determine the truth?
Every Computer in blockchain read each other until the transaction is true when it become correct will be approved.

2.How is this different from how truth is determined in a central database?
It is different in that in decentralized blockchain the copy of distributed ledger will be checked again and again when it is found to be true, will be approved by the miners !

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#6098

  1. Decisions on the Blockchain are made based on consensus, which means that instead of one central authority verifying a transaction - the different nodes of the network have to decide on something together in order to verify transactions.

  2. It is trust-less and decentralized - therefore involving many different nodes instead of one single party. Additionally, the nodes verifying the transactions are being incentivized for processing only transactions which are true and correct.

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#6099
  1. The blockchain consensus determines the truth by verifying that the information to be recorded is correct and valid with the decentralized network of validators and nodes.
  2. A central database is found in a single location. The information is distributed to its network from a single source. This information is taken to be true as there is no process to verify and validate the information being provided. This opens up the network to information that can be corrupted and manipulated to suit the central entity.
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#6100

1.Means that every validator have to agreed for a transaction to be added to the blockchain.
2.In central database, there is not a necessary consensus so anyone can be tempted to corrupt data.

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#6101

  1. Consensus is determined by whatever consensus mechanism is being utilized on the blockchain. Consensus is achieved by an agreement between nodes or machines on the network that whatever new information is being added is correct and verifiable.

  2. Truth is determined in a central database through trust, instead of verification, as it is in blockchain.

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#6102
  1. Consensus determines the truth when it comes to blockchain, means that since it’s a public ledger all transactions can be viewed by all participants . No individual, can make any false claims because everyone can see as well as verify everything. Plus, financial incentives makes sure all involved are kept honest.
  2. No authority over site whilst a database is centralized and an authority can intervene.
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#6103

  1. If a transaction has been approved, it means that multiple parties have verified the transaction. If it has not been approved, they have agreed that it’s not true and it will not go through. It’s trustless.

  2. In a central database, it’s all based on trusting the information has been recorded properly. This means it can be manipulated.

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#6104

  1. In blockchain, consensus determines truth because the nodes in the network must agree that transactions made are valid. The individuals who own the nodes earn incentives for verifying transactions. Thus, creating a trustless system where the validity of a transaction is based on all parties reaching consensus.

  2. In a central database, one authority controls the data and has the ability to manipulate it - intentionally or inadvertently - and parties engaging in transactions trust the authority is providing accurate information because they do not have the ability to verify it themselves.

1 Like
#6105

  1. What does it mean when we say that blockchain, consensus determines truth?
    There is a verification process in place. A network must agree on the data for the data to be accepted into the network. This concept is backed by incentives to instill honesty and integrity within the process.

  2. How is this different from how truth is determined in a central database?
    The data can be manipulated in a central database which then requires trust of a third party to audit the information to attempt to insure accuracy.

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#6106

  1. It means that all contributors to the blockchain will reach an agreement and that agreement is the truth.

  2. In a central database consensus is most likely reached by the maintainers/owners of the central database. Consensus on the blockchain though is reached by people specifically as their copy of the blockchain determines what’s true as it’s compared to other people. This all happens in a decentralized fashion as no one entity owns the blockchain .

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#6107

  1. consensus is a way to verify whether the action being taken is true or false. It needs the approval of many other reliable sources before it is accepted as “true”.

  2. This is different because the consensus is verified by many and is almost trustless. It also incentivizes the verifiers the be honest.

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#6108

Homework on Consensus - Answers

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means that the blockchain provides verification which goes beyond trust.

  2. How is this different from how truth is determined in a central database?
    In a central database, agents have to trust centralized agencies to be truthful about their products, yet there is no decentralized verification of their products.

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