Homework on Consensus - Questions

Blockchain and Bitcoin 101
#643

  1. a decentralized blockchain network is incentivized towards true transactions that can be verified = consensus.

  2. a central database, with remove capability, is subject to the last editor, removes the trustless aspect, and adds a central point of failure.

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#644
  1. Consensus of the distributed ledgers verifies the truth
  2. A central database verifies against a value or property on that one database, blockchain verification is against many ledgers
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#645
  • What does it mean when we say that in blockchain, consensus determine the truth?
    if they reach consensus, everyone agrees and the transaction would be added to the blockchain
  • How is this different from how truth is determined in a central database?
    you can never be sure that the data in a central database is not compromised
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#646

  1. When all nodes are communicating and the truth is easily findable especially when everybody is incentivised to tell the truth by giving them rewards or afraid of not losing their funds. When most entities in such network work as expected the truth is easily discovered and consensus is reached.

  2. To be honest in my opinion it is not different if you have the same underlying network, assuming that the entity controlling the database is not corrupt. In blockchain you do not need to trust an entity and that is the primary difference.

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#647

1 The truth is based on collective agreement.
2 In a central database the truth is determined by a third party, without a consensus.

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#648

Homework on Consensus - Questions

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

Answers:
1.It means that the truth is verified by the members and agreed on the network collectively by the people (members) in the network.

2- In a central database there’s a central authority that decides the truth. There is an authority that has control over the network and the decision of network truth/verification is decided. So the data in the network can be changed (meaning it’s untrustworthy).

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#649

1.What does it mean when we say that in blockchain, consensus determine the truth? Consesus is build on top of Incentive, where the network need to agree on the validity of the transaction by verify they information on the Ledger of the Network Node, if the network not validate that is an honest transaction they will ignore it and remove from the blockchain, if the transaction is validte the Network will execute it.
2. How is this different from how truth is determined in a central database? Anyone can remove information from the Database that will make it not accurate and no systeme will be able to confirme that they information you receive it’s accurate or not. You have to give trust on a centralized controle that can’t be false the result.

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#650
  1. Multiple nodes/ledgers on the network must agree that the new information is true before it is added to the Blockchain. Once this consensus is reached, the information is added.
  2. A central database can be modified by many and there is no consensus required to ensure the information added is accurate.
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#651

  1. Consensus is the mechanism by which the network of a blockchain agrees whether a given transaction is valid or not. It is used to achieve the decentralization of the system and ensure the reliability of the data in the network. This necessary agreement requires multiple distributed nodes to verify and confirm that the data being added to the network is the only version of the truth. Thus, this concensus among the nodes is what determines the truth in a blockchain.

  2. The truth in a centralized database is determined by the entity that owns that database. Whoever owns the database owns the data and thus determines the truth.

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#652

1.) Consesus determines truth because each node on the network verifies the validity of a transaction. When agreement, or consensus is reached, that transaction gets added to the blockchain.

2.) Truth in a centralized database may be determined by a small group or even an individual. Moreover, that truth can be altered at any point down the line.

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#653

  1. Its determined by decentralization and trustlessness, the network must verify all new transactions in order to be accepted into the blockchain.

  2. The computers in the network are incentivized to verify information/transaction. Consensus is achieved by financial incentives.

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#654
  1. The “truth” is whatever 51% or more of the nodes say it is, assuming the algorithm is structured that way.
  2. In a normal database, the “truth” is whatever the DBA says it is.
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#655

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

Every single transaction on the decentralized blockchain is verified and agreed upon by the nodes before it’s added.
‘Telling the truth’ within the network is economically rewarded and thus incentivised.

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

The owner of the databases determines the truth of the data within his central database.
This makes ‘traditional’ linking different IT between companies so difficult and complicated.

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#656

  1. Consensus is reached by incentivizing the truth through mining and by the decentralized nature of the ledger network.

  2. A central database doesn’t have to have consensus among a network containing a public ledger, there is no incentive to tell the truth or be verifiable to anyone outside the central database.

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#657

What does it mean when we say that in blockchain, consensus determine the truth?
A, A network of nodes confirm and reaffirm a transaction, if the transaction is incorrect it will be discarded

#658

  • What does it mean when we say that in blockchain, consensus determine the truth?
    To have consensus is to have a general understanding by all people involved. When looking at a blockchain there is no incentive to lie and misreport data, seeing that if someone did lie that information would be kept on the immutable blockchain and that person would lose credibility forever. So it is in every parties interest to be open and honest, which can lead to a trustworthy consensus between all parties involved.

  • How is this different from how truth is determined in a central database?
    In a central database, from the outside, all we can understand and believe is what the central authority is telling us. Seeing how an institution like the Federal Reserve, which controls rates for all of america to take loans and mortgages, has never been audited, we must take every word from the person in authority as truth. However, seeing as we are quickly approaching another depression, any sane person must take what the FED says with a grain of salt.

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#659
  1. It means that there is no single authority but the whole network, which decides via the consensus and determines the truth. Any added information is only added on consensus of the whole network.
  2. In a central database there is one single authority, which decides about the truth. There is no consensus required on information added or deleted in a central database.
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#660

1 What does it mean when we say that in blockchain, consensus determines the truth?
Individual properly incentivized parties agree on an the validity of an outcome or a particular data point.

2 How is this different from how truth is determined in a central database?
A central database is made up of a single party and does not have the benefit of a group of decentralized members performing a trustless validation.

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#661

  1. Economic incentives are provided so that all players on the network work together to agree or disagree if a transaction is valid or not

  2. In a central database the authority or organization that controls the database has the power to add, change, or delete items that don’t fit into their version of the truth

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#662

  1. It means that multiple parties need to be in agreement in order for something to be accepted as truth. This allows for a trust-less system. In Bitcoin, consensus eliminates the need for trust by incentivising to telling the truth.

  2. In a centralised database, trust is needed. Whoever controls the centralised database, needs to be trustworthy in order for the data to be accepted as true.

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