Homework on Consensus - Questions

Blockchain and Bitcoin 101
#603

  1. Blockchain is a decentralised system, so all the ledgers in the system are communicating with each other in real-time, building consensus. Since consensus is built on the incentive of the users to make money, all the ledgers, e.g. all the computers in the Bitcoin network, are incentivised to act in an honest way.

  2. In a central database there is only one ledger that holds the truth and there is no consensus as there is in blockchain.

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#604

  1. It means that a number of computers connected to the blockchain have verified a transaction to confirm that it is correct therefore by coming to a consensus

  2. A central database rely on humans putting in correct information this can be manipulated depending on the individuals motives also it leaves room for human error. On blockchain a transaction is determined by computers coming together to confirm that a mathematical equation is correct and is confirmed by more than one computer therefore eradicating an potential for error because it requires a consensus to be reached by a number of participating computers that are incentivised to get the answer correct.

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#605

1- Because everyone in the network needs to appprove before one transaction is accepted and saved to the ledger.

2- In a conventional database one single person can decide something and modify it without being double checked by other participants, because this type of structures rely on trust and could also work in centralized ways.

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#606
  1. truth is decided collectively
  2. in a central database there’s an authority that decides the truth.
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#607
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Consensus is reached when the data is agreed upon, matches, and is validated by the network. Multiple sources in the network must all agree that the data matches to reach consensus.

  1. How is this different from how truth is determined in a central database? You have to trust that only one fallible source of information is correct even though there aren’t multiple immutable sources validating that the information is true and verifiable by redundant immutable sources. Whereas data on the blockchain is data that is verified and agreed upon from multiple computers on the network.
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#608

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

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    The comunity has a common goal through incentives and agreement. There is a verification process which eliminates “to trust somebody”.
  2. How is this different from how truth is determined in a central database?
    Its decetralized, cannot be copied and amended. Decetralization concept in blockchain technologies eliminates the possibility the have “second” truth, altered truth.
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#609

1. What does it mean when we say that in blockchain, consensus determine the truth?
To be legitimate and added to the blockchain, all new transactions have to be accepted by all nodes. The decision being collective, there is almost no chance that a false transaction will be accepted.

2. How is this different from how truth is determined in a central database?
In a central database data can be modify or canceled. It is not possible to audit the data and only the database owner can decide if a transaction is valid or not.

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#610

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

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    A: It shows the group in the network working together to verify the facts that are shown to the public
  2. How is this different from how truth is determined in a central database?
    A: The difference is that there is an incentive for the group to verify the truth buy rewarding the same output from the group if there is a disruption in the network it will not hold true
    [/quote]1. What does it mean when we say that in blockchain, consensus determine the truth?
    A: It shows the group in the network working together to verify the facts that are shown to the public
  3. How is this different from how truth is determined in a central database?
    A: The difference is that there is an incentive for the group to verify the truth buy rewarding the same output from the group if there is a disruption in the network it will not hold true
#611

[quote=“ivan, post:1, topic:8425”]

  • What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus is the verification of the on the ledger that the information is correct, because everyone is playing by the same rules due to financially incentive. Hence if eveyone has the same info and everyone agrees it is the truth.

How is this different from how truth is determined in a central database?
Central database is privately owned and at any point people can get into it and change things and make new truths or rules, also its not backed up and verified by anonymous people. With a regular database the power is centralized and people can collude and lie towards one goal. Their own personal financial goals, cant be trusted.

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#612

Answers

  1. Every node in the network works to approve a block of transactions. Nodes are incentivized to find the truth, so the majority partecipate to create consensus, and than consensus determinate the truth.

  2. In a central DB consensus is just in one hand. A single authority, the company which control the system, can build their own truth. We can just trust in it, maybe…

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#613
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Consensus is achieved through a network of computers that determine if a transaction should be included into the blockchain or not. This is the beauty of decentralization as the network of computers communicate from within, making it difficult to cheat. All of this is further achieved through financial incentives which rewards all parties involved for being honest.

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

In a centralized database you have one party that makes the decisions which relies on the “trust” factor. The one party that is involved has to be relied on to not cheat in favor of their own incentives. In a decentralize database you have a network of computers that makes the decisions which eliminates the “trust” factor. The parties involved are rewarded for their honesty through financial incentives which makes it hard to cheat.

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#614

  1. Because blockchain Is decentralized, all parties has to agree on something for it to be true. Is there no common consensus, it is not the truth.

  2. The truth in a central database can be determined by whoever runs that database. It is a lot easier yo manipulate.

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#615

  1. It means that the participants in the network all have to agree on what has happened, and they are incentivized to being honest by consensus mechanisms such as proof of work that Bitcoin uses

  2. The truth in a blockchain is determined by “voting” among all the participating nodes, meaning a few hostile nodes can not redefine what is true. In a central database, one hostile player could be able to redefine what is true

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#616
  1. What does it mean when we say that in blockchain, consensus determine the truth?

To validate the truth in blockchain multiple decision makers are required and also incentivized in the task.In this way the network prevents fraudulent activity and therefor any changes or accidental loss of information is not possible.

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

In a traditional database an owner can independently corrupt the data therefor any truth can be manipulated / changed at any point in time.

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#617
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Like within a supply chain network example from the video: the network has the incentive to tell the truth about whats in the material that is being supplied to a person or business, which is good for security and trust.

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

The incentive is the big difference, in a central database the owner or authority of the database, controls the truth and that is a security risk and incentive can be corrupted.

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#618
  1. Information is unchangeable, confirmed and verified by multiple other parties.
  2. Information is controlled and potentially able to be altered without transparency.
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#619
  1. consensus determines truth because the incentive to provide acurate information in a supply chain run on a blockchain means that you are trusted through verification. More trust, more business.
  2. Trust in a centralised database is purely trusting that somebody has done what they say they have done. There is very little way of verifying without a lot of work.
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#620
  1. Consensus determines the truth publicly by removing the trust from a single party and allowing the public to decide, Motivated, to tell the truth, because there is an economic incentive.

2)Central databases are prone to manipulation and having to rely on their truth.

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#621

1] Every node is incentivised to verify the truth

2] Centralisation - only one copy of the information stored in a closed system. Anyone with access to the database can amend that data.

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#622

Hi,

  1. In a blockchain, consensus determine the truth because everybody is incentivised to tell the truth, it becomes really hard to cheat since you would lose money and it’s just not worth it.

  2. In a central database, truth is determined only by trust.

Please correct me if I’m wrong or if there’s any point I didn’t get,
Thank you.

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