Homework on Consensus - Questions

Blockchain and Bitcoin 101
#1105

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

  • It removes the trust and encourages verification through a network of hardware and software.

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

  • Traditional audit procedures are required to reconcile the accuracy from physical (paper/digitized) evidence.
#1106

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Each node works together to verify transactions for an incentive and when a false transaction comes through it is kicked back.

  2. How is this different from how truth is determined in a central database?
    Central database would require trusted officials who are making the decisions.

#1107

  1. Everyone in the network has to agree (and they are incentivised to tell the truth too)

  2. A centralised database runs like communism.

#1108
  1. If a consensus is reached, it means that the transaction has been „doublechecked“ and if its true - it gets validated and added to the ledger. If it is false, it wont be validated and the transaction won’t be allowed.
  2. In a central database a single person could decide the truth. That person can alter that „truth“ in a way he/she prefeers.
#1109
  1. What does it mean when we say that in blockchain, consensus determine the truth?
    A transaction is only added to the public ledger if the cpu’s agree on it. That ‘becomes’ the ‘truth’.
  2. How is this different from how truth is determined in a central database?
    There’s no single authority deciding, it’s multiple cpu’s that have to agree on it.
#1110

The reality is been made by the consensus, and not by one person/company/country or similar.

An authority is able to manipulate a central database in own interests.

#1111

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

Consensus in a network is archived when the majority in the network agree that an event that happened is the truth. This is then writen into the blockchain as the truth or consensus. Miners in the Bitcoin blockchain (proof of work) are incentivised to reach consensus through financial reward for maintaining the network consensus. Any attempt to do otherwise would be rejected by the network majority and result in no payment and a waste of resources for any fraudulent miner.

  1. How is this different from how truth is determined in a central database?
    A central database has by design multiple points of failure. One of the biggest, is that the data contained within can be changed and manipulated. Most central databases has an administrator or a number of them, any one would be capable of alltering the data within. Also any backup of a database could be rolled back to a certain data and any data entered between the rollback data and the present moment could be re-entered differently(Manipulated) or lost forever.
#1112

  1. It means that the truth is decided and greed along with a collectively by the people.

  2. In a normal database it is usually controlled by the central and it could be manipulated anytime.

#1113

Glenn_CostaRica

1. What does it mean when we say that in blockchain, consensus determine the truth?
A blockchain is composed of a network of actors, or a network of computers, where each computer could compute by itself virtually all the history and present state of the whole network, all the time, based on a trusted set of rules programmed in the system. The only trusted factor is the rules. We all believe in the rules and in the precision, accuracy and predictiveness of the set of rules. Based on the set of the rules that we all agree upon, each actor – each node of the network – agrees with the whole community of actors that will accept as true any new state of the global system that is produced based on the rules, and that is auditable through the same rules. Any state of the entire system – any truth – that we all agree upon based on the rules, will be THE truth. In Blockchain the truth cannot be determined by one, two or a minority of nodes. Truth is determined by consensus: by the agreement of all the actors of the system.

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

In a database controlled by one central authority, like a public or private bank, like any company or any kind of centralized organization, the truth is in the end determined by the owner and managers of the database: by whoever has enough access as to tamper with the information and by whoever is admin or creator of the database.

#1114

I wouldn’t say punished but trying to cheat the network will leave a miner with no reward, but they still have to pay for the electricity that they used.

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#1115
  1. when new transaction is introduced, network of computers in the blockchain will verify the transaction and agree that if that is indeed true transaction. once it reaches the consensus within the network then it’s accepted.
  2. central database can be modified. also it is not accessible for everyone in the network. anyone else does not have access to central database has to trust that it’s true.
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#1116

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    -consensus is network compose of computers which the only job is to verify. it becomes trustless because there is no human involved and not owned by anyone. everything treats equally.

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

  • it’s immutable means once added it closely impossible to delete or edit the records. unlike on the central database, one can edit or delete the data.
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#1117
  1. It means there is an agreement between the majority of the network that will decide that a transaction is valid or true in order to gain an incentive.
  2. Because truth is determined by multiple parties that will confirm the information as valid based on their own local copy of the database, as in a truth less system. In a central database there is only one version of the information and you will need a trust factor in order to accept it as the truth.
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#1118

What does it mean when we say that in blockchain consensus determines the truth. With block chain we can do away with traditional auditing, and can audit in real time, this is more efficient. Accounting will connect with transition. The every step is tracked, from the ingredients of your food to the money in the payment. The process is truthless and the word is to verify.
How is this different from how truth is determined in a central database.? In a central database we are having to trust and expect that what they say is true. For example 30% of what they say is on a ingredient list may not be the case. To research the truth is requires much effort and time and therefore money.
but where are the homework for provenance?

#1119

  1. Computer nodes spread world wide have to agree to the validity of any new transaction. Otherwise the transaction is not allowed into the blockchain.

  2. Decisions in a central database can be made buy one entity or authority who have the power to make changes that may not have backup documentation.

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#1120

1:Consensus is achieved by a network agreeing on the validity of a transaction.
2: In a central database a central authority determines the truth.

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#1121
  1. consensus depends on verifying and validating transactions. When there are more than one nodes or computers that contain full historic data, false data or unconfirmed transactions cannot be added to the ledger or blockchain
  2. Blockchain consenus is trustless while centralized databases are the exact opposite of this.
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#1122

It means that the community agrees on whether to add information or a transaction to the block chain as true.
It differs from centralized proof is that only one person or institution decides and they may have their own interest not necessarily the truth.

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#1123

  1. Consensus is the agreement of all nodes in the blockchain to a transaction or new data being added to the blockchain. Each computer asks “does this make sense”. If there is agreement, it is added to the blockchain and becomes permanent record. If not, it is rejected.

  2. An agreement between all nodes ensures accuracy and honesty. Incorrect or false data cannot be added to the blockchain, so the record now ensures honesty and a Trust-less database

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#1124

  1. What does it mean when we say that in blockchain consensus determines the truth?
    In order for a transaction to be added to the blockchain each transaction must be independently verified by the other computers on the network. The resulting ‘consensus’ resulting from all of the independent validations of the transaction becomes ‘truth’ and is stored on the blockchain. Those committing resources to perform transaction validations do this because there are financial incentives to do so.

  2. How is this different from how truth is determined in a central database?
    Truth in a centralized database requires trust in a single central managing authority and is determined by whatever the central authority that maintains the database claims vs a network of validations collaborating with each other to independently validate transactions to agree whether the each transaction is valid or not before the transaction is committed to the blockchain.

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