Homework on Consensus - Questions

Blockchain and Bitcoin 101
#1669

What it meant is finding the truth through consensus is determined through a large group of people and or say a computer network database of ledgers that are incentivized to be honest regarding the operation at hand. Many players are involved from external point that, on their own, come to the exact same conclusion, thus creating a consensus with the other players about the nature of the operation.

Consensus is different than how truth is determined in a central database because Consensus is formulated from decentralized points. That is, separate entities that verify the data on their own. These entities are given the incentive to tell the truth about the operation by tracing the back history of the operation and offer their honest conclusion to eachother. In a central database there is only one source through which the data is verified not the many sources that add to the ledger. Much easier to corrupt the truth of a central database.

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#1670

1.What does it mean when we say that in blockchain, consensus determine the truth?
*They all agree that the transaction is truth. Is a collectively decision.

****2.How is this different from how truth is determined in a central database?
In a central database is all ways one person with authority who decides the outcome and the truth can be corrupted and altered.

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#1671
  1. What does it mean when we say that in blockchain, consensus determine the truth?

In blockchain consensus refers to the agreement of all network participants in a public ledger that a transaction or set of data is accurate and took place, and the consensus mechanism is itself layered on top of (usually economic) incentive. Therefore all rational network participants will want to be truthful in their verification of any transaction (or data set) before accepting it onto the blockchain / ledger and therefore by many rational actors agreeing together (I.e. by “consensus”) truth is determined in a manner that is also “trustless”.

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

In a central database, a centralised authority is able to “single handedly” (in the case of one actor but it could be a single group) determine what should be recorded as “truth”. The ability and motivations of a single actor, or group of actors, to both accurately and honestly determine this truth and record it securely has to be called into question because it relies on trust and self governance (for example, trusting a Central Bank to audit itself!) - and logically this an inferior manner of determining “truth”, and one which is open to dishonesty, inaccuracy, conspiracy, incompetence and also (in a database that isn’t immutable) highly changeable / amendable “after the fact”.

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#1672

  1. The truth is apparent when all nodes agree.

  2. In a central database there is only one copy. This can become corrupt. There is a higher level of trust required by the users.

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#1674

A: Consensus is achieved when all parties agree funds are available by checking the ledger so a transaction can be completed.
A: Determining truth by consensus is different from a centralized database because it is trust-less and honesty/playing by the rules is incentivized while dishonesty is dis-incentivized.

#1675

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

  • only possible when we all (ALL decisions makers) agree
  • decision makers are ‘incentivised’ to find the truth
  • network validation and redundancy prevents fraud and accidental loss

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

  • we need to trust the records in database which differ from the trustless blockchain
  • Records can be manually altered
  • no independant audit possible (nearly)
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#1676

  1. It means that the blockchain network has to agree that the transaction being proposed is valid. If they do agree the transaction will be completed. If it is not valid the network is financially incentivised to tell the truth.

  2. With a central database you have to rely on the owner of the database being truthful. Blockchain remomes that aspect.

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#1677

  1. When we say that consensus determines the truth in blockchain, we mean that consensus is a fundamental feature simply because is what allows the database to verify information across the network and achieve trustfulness in the system.

  2. In a centralized database, truth is determined only by the faith of those who support it. There are no guarantees that the information kept there reflect the best interest of the supporters, but rather of those who manage it.

#1678

1- What does it mean when we say that in blockchain, consensus determine the truth?
Every node / team working independently from all others comes together (Publishes their findings) once the mined for work has been completed (this newly mined for block contains all past agreed blockchain data and new transaction data). If these independent nodes come back with results that are the same then the consensus is that the (majority) results is the correct result and that there is a consensus to add/allow in the agreed result finds/values to the next block of the blockchain. Consensus works by trustlessly verifying the results in a pending block, and then sharing the results with everyone on - if there is a consensus that the found results are the same for all (or the majority) then by consensus the results (transactions) are added to the next immutable block in the blockchain.
2 - How is this different from how truth is determined in a central database?
In a central database, truth is determined by the individual(s) in a position of power to determine what the truth is and can update the database accordingly. Truth is subjective (and can be falsified) and does not take into consideration independent verification (without unwanted legal audits) by anyone outside of the closed group/organisation. False data in a central database is difficult to identify the longer the false data has been included in a database, as there is no stage by stage independent verification.

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#1679

Hi there! And how is the truth determined in the central database then?

#1680

Almost there! We mean that the truth relies on the participants agreeing on the state of the Blockchain! If the majority believes something is the truth, then we reached consensus! Isn’t that awesome?

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#1681

In a centralized database information may or may not be true, however it can be changed/input by those with authority (gatekeepers), therefore the information within is never really final and may or may not be trustworthy. Ultimately, trust must be given to those controlling the database. With the bitcoin ledger, truth is determined by the consensus of multiple participants agreeing on the validity/authenticity of transactions.

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#1682
  1. Consensus = agreement of all parties in the network verifying the data so that it becomes more difficult to cheat.
  2. In a central database, it is easier to alter data and you have to trust that whoever has control of the database is trustworthy.
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#1683

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Multiple parties have come collectively to the same conclusion. relys on a preset unchangeable mathmatical protcol. Financially incentivesed to stick to the protocol. And is unchangeable when confirmed.

  2. How is this different from how truth is determined in a central database?
    Centralised databases are not subject to proof of concensus verification by multiple seperate parties. Only to what they themselves decide is correct. not neccessarily based on a correct mathmatical protocol. financial motivations are unverified and uncertain. potentially changeable and corruptable. ?

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#1684

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It mean we do not have to trust anyone or anything rather decentralized verification determines the truth via consensus.

  2. How is this different from how truth is determined in a central database?
    In a central database, we basically have to trust the database without verification.

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#1685

  1. Consensus is a feature of the blockchain where decisions are taken collectively in decentralised environment by different nodes in the network. This feature allows for verification of all transactions and is supported by incentives mechanism where all parties pay by the rules. Consensus allows for trustless environment where no single party can make a decision to verify, accept or alter information unilaterally.

  2. In a central database there is no concept of trustlessness nor consensus a the central database as database entries and information can be altered by the central party operating the database.

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#1686

  1. that every party/node is incentivized tell the truth and the truth is what the majority agree upon;

  2. in centralized DB truth is determined by a centralized authority.

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#1687

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus is the agreement among network participants on what is the truth, based on rules they
    have adhered to.

  2. How is this different from how truth is determined in a central database?
    In a central database, a central authority decides what is the truth, based on its needs/evaluation of the situation. The authority can alter any pre-existing rule according to it needs

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#1688

1- Consensus make the network trustless, this mean that every node should verify the trust of the information-Transaction using the incentive of the members of this network.
2- In a central database , information or transactions are verified individually in a single place, there is absence of consensus that the information or transaction stored is true and not has been manipulated.

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#1689
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Consensus is reached through all nodes on the blockchain verifying that a transaction or block should be added to the block chain. all the computers are incentivized to tell the truth allowing for verification. consensus removes trust and it is achieved through incentives.

2 How is this different from how truth is determined in a central database?
I’m not sure how to answer this question.
I didn’t hear Ivan Compare centralized consensus to Decentralized proof of work or consensus