Homework on Consensus - Questions

Blockchain and Bitcoin 101
#924

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Records only get accepted when verified by every party or peer or node of the network.

  2. How is this different from how truth is determined in a central database?
    We are incentivised to play by the rules.

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#925
  1. When the network (peoples and/or nodes systems) agree on the validity of the transaction.
  2. The truth can alway by altered within the time without the involvement of the network (peoples and/or nodes systems), because one entity might have a different incentive that will benefit them.
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#926

1 Consensus determines the truth by removing the need for trust “Trust-less” By a global decentralized consensus
2 A centralized data base is built on trust and the user may not be incentivesed for truth

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#927

  1. That we all collectively agree that it is true

  2. In a central database, you have to just trust the authority

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#928

What does it mean when we say that in blockchain, consensus determines the truth?
-When we say consensus determines the truth, we mean that the network of blockchains have all agreed that a transaction is legitimate. Since it is to the networks best interest to be honest, and are financially awarded thusly, you can remove the trust element out of knowing whether or not a transaction is real and know that a transaction in the blockchain has been validated.

How is this different from how truth is determined in a central database?
-It is different from a central database because of the trust factor. Traditional centralized databases are governed my a central authority that is supposed to be trusted. This opens up for easy corruption if it is in the best benefit of the company.

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#929
  1. What does it mean when we say that in blockchain, consensus determines the truth?

Agreement/consensus of nodes that all transactions are accurate and legitimate.

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

In a central database the entity controlling the database states what is “true”. This information is based upon trust that the central entity is honest.

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#930
  1. It means that in Blockchain anything is true as long as it’s verified through a collective agreement.
  2. a central database does not deal with consensus,
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#931

1.Consensus is the agreement from everyone that a particular transaction happened, if anything is odd, consensus agrees that that odd measure is false

  1. The truth is determined by the admin :laughing:
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#932
  1. Truth = statements facts that follow the rules of the network
  2. Data in a central database is simply data; verification of accuracy are separate from the data itself.
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#933
  1. The decentralized network reaches a consensus to determined truthful transactions and each player is incentivized to play by the rules because it is profitable.
  2. Central database can easily tweak data or hide figures according to what they want.
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#934

1.There are visibility in every block, which means one part knows what other part does.

  1. In central database there are no visibility, which means that they determines what is truth.
#935

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    -> It means that the public ledgers verify and agree that a transaction is true. Each player is rewarded by saying the truth which makes consensus much easier.

  2. How is this different from how truth is determined in a central database?
    -> Central Databases can willingly or unwillingly be corrupted and there is only one central party to decide if something is true or not. Consensus should never be achieved by a single parties decision.

1 Like
#936

Homework on Consensus - Questions

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

When a transaction gets put onto the blockchain the consensus protocol agrees that the transaction is true. The decentralized nodes agree that the transaction is true and then the transaction is allowed to be put on the blockchain ledger - now it can never be take off the block. It is now immutable and trust-less transaction and consensus is achieved thru incentives.

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

On a Central database you must have a 3rd party auditor to reach consensus

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#937

  1. Consensus requires a majority to determine the truth but it is very difficult for the untrue to achieve a majority. In modern jets there are several computers throughout the aircraft. If one malfunctions and says the jet is out of fuel but all the other computers say that there is plenty of fuel, then the consensus is that the jet is OK to continue.

  2. I don’t know how truth is determined in a central database, I guess through security protocols?

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#938
  1. On the Blockchain, a transaction can only be added if many computers on the network (miners) are involved in the decision and agree that it is correct. These decision-makers are incentivised to find the truth. The network has to agree and this prevents fraud.
  2. In a central database the owner has the autonomous decision as to whether data/transactions are added and correct. It is difficult to audit and would rely on trust.
1 Like
#939

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    -> The decentralized network is the strength of the system, by connecting nearly everything, it is much harder to cheat due to the fact that the whole “truth” is stored within the blockchain due to this connectivity.

  2. How is this different from how truth is determined in a central database?
    -> Central databases do not provide consensus, you’ve to trust the data which is inside.

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#940

  1. Every node on the blockchain verifies new entries if they are correct, if all nodes (participants) checks and agree that the new entry is valid, then the new entry gets added to the blockchain, it’s because all the nodes agree.

  2. In a central database you don’t have a decentralized network of nodes that all has to verify that the new entry is correct, you only rely on the one source for verification, the central database and that makes it more vulnerable because you’d have to trust just that 1 computer and database is correct.

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#941

  1. different nodes in the network all need to agree that a transaction is true in order for it to be added to the blockchain. They will not add any false transactions to the blockchain since all transactions are recorded and traceable. When all nodes concede that a transaction is true, it is true.

  2. Truth in a central database is not really determined. a central authority says that it is true and you trust it, or an auditor determines it at a later date and you trust them.

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#942

  1. Because verifying and reporting the truth to the other nodes is rewarded, the different nodes will always give the correct answer to each other, liars are being punished so they will always be in minority

  2. In a central database the person who enters/changes data can be rewarded and is incentivized maybe by not entering the truth by people outside the network, the decision to enter the truth or not, is fully up to the database’s admin. There are no independent nodes involved to check the database entry.

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#943

1- When a transaction is added to the blockchain or a decentralize network, we know that there were several nodes or parties involved in verifying that transaction in public ledger.

2- In centralized database, a single party or central verifies that transaction and in most cases is a private ledger that we all have to “trust”.

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