Homework on Consensus - Questions

Blockchain and Bitcoin 101
#6209

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

    Several parties decided that the transaction should add in the blockchain, and this transaction is valid or not valid.

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

    In central database one party is responsible for truth, this party can alter / delete / modify it.

1 Like
#6210

consensus makes all nodes to agree on common thing, so no one can fake their transactions
we check reliability and redundancy of data in central database

1 Like
#6211

  1. Miners and proof-of-work participants are incentivized to be approve e correct transactions to the blockchain. A transaction has to be approved by the entire network to make money. All nodes have to approve and verify the transaction.

  2. In a central database the information can be amended by a single entity as opposed to by many needing to be in agreement prior to anything being changed.

1 Like
#6212

[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?
Answer1: Consensus means when all nodes agree with one transaction. Since the transaction cannot be approved unless and until all nodes agree, this creates a trustable system which is blockchain. This is how consensus determines the truth.

2. How is this different from how truth is determined in a central database?
[/quote]
In central database transaction/data is added by the central authority owning that database. So the truth lies with one authority, which can easily manipulate/delete data.

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#6213
  1. Consensus determines the truth in blockchain because it’s a descentralized, distributed system where all the participants (like nodes) must agree on a shared set of rules to validate the information stored on the ledger, and only a consensus protocol that can ensure good behavior (following the rules, with the right incentives for ie) could be realiable to do that.
  2. It’s possible to edit and delete information on a central database, and those rights are designed to a centralized authority or group of people, not the entire community involved.
1 Like
#6214

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

  1. With consensus everyone is in constant communication with each other making it impossible to lie or cheat

  2. In a central database there’s a governing body controlling the truth

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#6215

  1. A group of people works together to verify the accuracy of a transaction.

  2. This group is incentivized, to be honest with their screening because they are paid money.

1 Like
#6216

1 because the truth has been verified by multiple systems that all have the correct answer

2 in a central database the truth is only getting checked by one system and the data can be changed so
you need trust

1 Like
#6217

1. What does it mean when we say that in blockchain, consensus determines the truth?
Truth means in accordance with fact or “reality”.
Consensus means “agreement”.

This means that what happened in reality is not truth on the blockchain, what the miners agree happened is the truth. This in theory opens up the possibility of someone recording transactions which in reality never happened IF 51% of the miners hash rate agrees. This problem is prevented by financially incentivizing people by rewarding Bitcoins.

2. How is this different from how truth is determined in a central database?
Truth is whatever the database says it is. In a central database the truth could be altered through things such as hardware problems, software problems, and access controls. Errors can only be found through auditing, but not everything can constantly be audited from an economical standpoint. Hardware and software could corrupt data, any corrupted data could now become the truth.
Anyone who has access to make changes to the database, which is normally a lot of people could accidentally enter the wrong information, or they could act maliciously to intentionally change the truth. There is no easy way to verify what appears to be truth is in a Central database.

2 Likes
#6218

Consensus is removing trust which is achieved through incentives!

1)what does it mean when we say that in blockchain, consensus determines the truth?

consensus is a dynamic way of reaching an agreement in a group. a minimum requirement to complete a process is decided collectively.

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

in a centralized database, there is a high risk of tampering by the persons in charge of the database.

#6219

  1. It means that all the nodes on network agree’s that the transaction is valid and it can added on the public ledger .

  2. Middle man can manipulate the data therefore blockchain doesn’t use intermediaries but it uses math to verify everything on the blockchain.

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#6220
  1. it determines truth by having data verified in its entirety in every network.
  2. with a central database you still have to trust that the data in the database is true.
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#6221

1 For consensus all parties must agree on a thing, that means that the ones trying to lie are found.
2 In central database there doesn’t need to be consensus, only 1 party needs to display something for the others to believe it.

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#6222
  1. the whole network needs to agree on a transaction. Transactions are written in the blockchain and can be verified and not changed. No trust needed
  2. In a central database information can be changed, trust is needed to get information.
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#6223

Because consensus must be achieved between multiple layers are computers in a network, the blockchain can be trusted go be truthful without having to trust the individual components of the network.

In a central database the administrator can determine the truth regardless of reality.

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#6224

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

    • It’s mean that any transaction should be validated by all nodes on the chain to avoid any false transaction.

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

    • The central data base can be controlled by only one authority (Bank, Government, etc.), but consensus not controlled single auth. as all nodes on the chain can approve the transaction, if it’s valid, as they incentives to tell the truth.
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#6225
  1. because everyone else in the network has agree with all transactions
  2. in a central database we have to trust a party but in decentralized systems its trustless
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#6226
  1. All parties meaning, nodes are incentivized and rewarded by verifying the validity of a transaction before being recorded on the blockchain.
  2. On a centralized database one individual can decide, manipulate data and transactions.
1 Like
#6227

1. What does it mean when we say that in blockchain, consensus determine the truth?
Consensus is achieved when all nodes on the network agree to the validity of each transaction. Parties are incentivized to reach consensus and are rewarded in the process.

  1. How is this different from how truth is determined in a central database?
    In a central database, one central party holds authority and only they and affiliated party members can agree on the existing or past actions that have taken place.
1 Like
#6228
  1. The truth is decided between nodes by agreeing.
  2. In central database the truth is decided by authority.
1 Like