Homework on Consensus - Questions

Blockchain and Bitcoin 101
#1811

Wonderful,
Thank you so much. To tell the truth I didn’t think I would get an answer thinking my message would get lost in all the others. I researched incentives for blockchain today but didn’t get an answer as precise as the one you just sent.
Thanks again

#1812

No problem. Thanks for asking. I am always glad to help. HODL on!

1 Like
#1813
  1. What does it mean when we say that in blockchain, consensus determine the truth?

The truth is only “found” when all the nodes (computers involved) reach a consensus which is the “truth”. To help reach a consensus there are incentives that will reward the node/computer/person involved for defining the “truth”.

  1. How is this different from how truth is determined in a central database?
    It’s completely different. In a central database, only the people who are in charge of the database determine the “truth” which can be real or not :slight_smile:
2 Likes
#1814

1.What does it mean when we say that in blockchain, consensus determines the truth?
The nodes in the blockchain network each hold a copy of the ledger of recorded transactions from which to verify proofs based on information entailed. If all of the nodes don’t agree on certain data that is trying to enter the blockchain then the transaction in unanimously recjected since blockchain nodes act as a digital committee. The blockchain decides what is accepted/rejected based on data on the immutable public ledger which all blockchain nodes contain. Dependable and accurate data is input into the blockchain network on the promise of an Incentive Reward($$$) which then supercedes the need to input faulty or innacurate data into the blockchain.

1 Like
#1815
  1. How is this different from how truth is determined in a central database?
    In a central database trust is based on the integrity of the individual over said database who may find more incentive in being untruthful to varied degrees for various reasons.
1 Like
#1816

  1. In blockchain all nodes have a copy of the blockchain and many nodes can add data to the blockchain. The nodes have to agree what data should be added (i.e. the truth) or not added. Incentives, such as economical incentives are used to reward nodes that follow certain rules about what to be added to the blockchain which creates consensus. It’s not supposed to be in any nodes economical interest to not follow the rules.

  2. I’m assuming a central database is not completely public (i.e. not everyone can have a copy). Then there might not be consensus, since there might be no natural incentives to register correct information unless some all-seeing actor could police everyone to tell the truth, which is hard.

1 Like
#1817
  1. What does it mean when we say that in blockchain, consensus determine the truth?

Consensus determines the truth because it represents the agreement that the network of decentralized computers has agreed to and verifies the transaction imputed in the ledger.

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

In a central database, there is no external verification to preserve the truth.

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#1818
  1. Consensus is removing trust and it is achieved through financial incentives. People gain money by being honest.
  2. In a central database the truth is decided by a centralized entity.
#1819

Correct, but what makes the blockchain so powerful for establishing trust among parties?

2 Likes
#1820

The thing that makes blockchain so powerful for establishing trust among parties is the fact that all decisions are being double-checked, and several parties have to agree on the fact that a transaction is legitimate. Meaning, every transaction is verified by a network of decentralized computers.

1 Like
#1821
  1. Consensus determines the truth due to the truth being agreed upon by several different points within the network. There has to be consensus, there has to be truth, otherwise the information would be rejected.
  2. Information in a central database can be altered by the authority of that database.
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#1822
  1. Consensus in blockchain is the key to have a trustless system. When there is a single entity that decide what is true or not you can’t really talk about consensus and truth become a sort of force truth. When multiple entities in a decentralized network reach consensus is like a democratic vote, where each node is also incentivize to check the correctness of data they insert into the blockchain. All these aspect bring to more trustworthy system that enable “Truth without Trust”.
  2. In a central database truth is determined by a single entity, in a decentralized blockchain truth is reach by general consensus of each node.
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#1823
  1. Each node has a copy of the blockchain and must agree before accepting a transaction.
  2. A central data base can be manipulated. No verification.
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#1824
  1. The truth (request) has to be agreed upon by a decentralised collective (consensus) who are incentivised to tell the truth and report back their findings against their own copy of the chain. If they all agree the request is processed, if not it is discarded.
  2. A centralised database is simply read from and the results are based on trust (that the data requested is acurite this lacks providence).
1 Like
#1825

[quote=“ivan, post:1, topic:8425, full:true”]
Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    It means the blockchain is formed by agreement on a transaction by multiple computers ,witch verify the transaction. without all agreeing on that transaction, it is rejected
  2. How is this different from how truth is determined in a central database?
    in a central database you can look up an transaction but dont have to agree to get the transaction aproved.
1 Like
#1826
  1. Consensus= GENERAL AGREEMENT of ALL THE NETWORK PARTICIPANTS to decide if it’s true or false.
  2. Truth in central database is decided only by that central database . So if CENTRAL DATABASE IN CORRUPTED than is not TRUTH
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#1827
  • Consensus determines the truth driven by economic incentives (through PoW, PoS).
  • In a central database there is a single owner and he/she might not be truthful and can alter the database.
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#1828

While this is not how consensus works in bitcoin, it’s a great way to think for a start. You will learn more as you go on. Keep up the great work. :smiley:

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#1829

Most of the time, a central database is private.

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#1830

  1. Because a particular transaction is verified by multiple sources which agree that it is valid unlike what is usually obtainable.

  2. There are incentives for truthfulness in blockchain unlike in central databases. The system is decentralized and there y difficult for all parties to be corrupted.

1 Like