Homework on Consensus - Questions

Blockchain and Bitcoin 101
#864

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

Blockchain uses a consensus mechanism (PoW, PoS, DPos, etc) to define the rules of the consensus.Nodes have incentive to carry out these rules. Several nodes must verify a single conclusion in order for it to be confirmed on the blockchain. Consensus of the nodes on the network, determines the truth of the ledger when all nodes play by the rules.

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

Truth is determined by an authoritative entity that is able to verify or falsify what they deem fit. Usually kept on a central copy or database, if this truth is altered by said authority or another malicious party, the truth can be altered. In a centralized database, there is only one version of the truth.

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#865

  1. Consensus happens in the blockchain network when all the nodes come together and compares and agree that the transactions are valid. With this consensus, there can be no validation from one authority but instead it comes from all the nodes in the network, therefor, it gets trustless. Validation > Trust

  2. In a central database, only one individual determines what is true. It can be manipulated and changed, and is built only on trust.

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#866

Consensus is an agreement with a personal incentive to reach a common profitable ā€œwell tastingā€ goal/reality other then forced trust without the possibility interact in decision making or intervene.

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#867
  1. Consensus determines the truth in blockchain because separate parties, who are incentivized to be truthful, have agreed that the transactions are valid.
  2. In a central database, there are no verifying parties and no incentives for verifying entries.
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#868

  1. Consensus is the process of verification of information, it is essential for providence which would otherwise not work. The supply chain/network relies on the process of verification of information by incentivizing all involved members of the network to tell the truth in the process of reaching the consensus among all participants. Only when all the members of the network approve of the information and the consensus is reached the information/transaction is confirmed.

  2. What is different from the central database system is that through consensus within a decentralized network all parties are motivated to verify the truth by being financially incentivized. It is not possible to cheat since all parties are connected and communicate with each other and verify information from every component of the supply chain.

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#869
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Computer networks are keeping a checks and balance to insure transactions are true.
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#870
  1. All nodes are in agreement
  2. no one to verify
#871

  1. It means that network agreed on that.

  2. Because it is decentralized. It can not be determined by one (central) entity.

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#872
  1. Every transaction that is on the blockchain needs approval from the network verifying it to be true. So, cumulative approval from the network for that particular transaction is consensus. By providing the truth, all consensus/approvals get incentives for their work.
  2. One can manipulate the central database to give the truth. Verifying this truth is almost impossible as it isnā€™t decentralized with everyone on the network.
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#873

Homework on Consensus

What does it mean when we say that in blockchain, consensus determines the truth?
In the bitcoin blockchain every node on the network has a copy of the blockchain locally. As a result, if a transaction is made on the network, every node is able to check if the transaction is legitimate/accurate. If the network comes to a consensus (the majority of nodes agree that transaction is legitimate), the transaction is allowed to go through otherwise it is rejected.

How is this different from how truth is determined in a central database?
In a central database the database is most likely hosted on a single node. As a result the decision is made by this one node and there is no one else to verify if the transaction is accurate. An indvidual has to trust the central node whereas in consensus there is verification.

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#874

  1. The reason we say that consensus determines the truth in blockchain is that consensus would require an agreement of a network of individuals to tell the truth in which they are incentivised to do so. When a majority agreement is reached by the network, that version of the truth would be written the blockchain. It would not be an easy task to get the majority of the network to go against the truth and miss out on the reward for providing the truth.

  2. A central database is controlled by a single entity or corporation and the truth can be determined by that single entity. The version of the truth can even be altered by one person.

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#875

  1. Consensus determines truth by incentivising others on the network to determine if a transaction is valid. If a transaction isnt legit others on the network are incentivesed to not validate it. This allows the db to solidify a complete record of data that cannot be changed or erased.

  2. Truth is determined by a central db which can be manipulated or erased whether that be maliciously or unintentionally.

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#876

Consensus: In Blockchains caseā€¦ A natural law compelling all active parties to be honest due to the incentive for mutual commercial gain.

  1. All decisions are made together and double checked. All computers in the network must be in agreement.
  2. In a centralized database, the control over which data is kept and which isnā€™t is decided by one party. Therefore the customer or user must trust the information given wherein a decentralized database that has high provenance and 100% consensus, the trust factor is out the window.
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#877
  1. All peers reach an agreement of the blockchain network on the present state of the blockchain transactions.
  2. Normal databases do not have a blockchain & do not have a peer group that has to agree on transactions.
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#878

  1. All the computers on the network are decentralized. Unless all the computers (or everyone) agrees, then we donā€™t have consensus so the transaction (or other data) will be rejected. It removes the need to trust the information.

  2. With a single centralized database, there is only one database and we must trust that database. It is easy to cheat. Just one person can make changes to the database and we might not trust that person.

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#879

  1. Consensus determines the truth by collaboration between nodes by incentive.

  2. Truth is determined differently from a central database because with a central database, data can be manipulated. With Blockchain consensus between nodes verifies.

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#880

1.consensus achieves truth by multiple parties verifying any given transaction or data .
2. A centralized database determines one truth that is not trustless because there is only one party verifying the transaction and/or data .

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#881

  1. When consensus is reached by the blockchain, that means that every computer of the network validated the information, so itā€™s true.

  2. In a central database, information can be manipulated and corrupted by authority or interests. Doesnā€™t need global consensus.

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#882

What does it mean when we say that in blockchain, consensus determine the truth?
For a transaction to be accepted all computers on the blockchain must agree on the truth I.e. come to a consensus

How is this different from how truth is determined in a central database?
the database is centrally controlled, so an authority can alter the information, or it can be easily hacked because of its centralization, a hacker would not be able to hack all computers on the blockchain

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#883

What does it mean when we say that in blockchain, consensus determine the truth?
Because all the information is on different machines, which are incentivized to tell the truth, the omissions and errors are exposed through all computer verifying what is posted as accurate.

How is this different from how truth is determined in a central database?
Truth is what the database owner says it is. So if I own and control it, truth is based on my point of view, likely giving me an opportunity to appear credible even if Iā€™m not

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