Homework on Finality - Questions

[saf]

1. Transaction finality means that once a transaction is completed, it cannot be undone.
2. This leads to a trustless environment because transactions are secured through the protocol, meaning that strangers can transact with each other without trusting one another.

[TomasN]

1. Blockchain has transaction finality/immucatiblity in the sense that ordered transaction cannot be revoked nor it can be changed any more, once it is sent as a request to the blockchain network.
2. This leads to the trustless environment as it removes the need for trust that something has been ordered for payment. There is no need for trust as every transaction can be verified.

[Pineapple]

[quote=“ivan, post:1, topic:8424, full:true”]
Homework on Finality - Questions

1. What do we mean when we say that blockchain has transaction finality/immutability?
   We mean that you cannot change a transaction once it has been confirmed and recorded on the blockchain. There is no way of doing “chargebacks” or stopping a transaction once it’s been confirmed and it is therefore final.

2. How does this lead to the trustless environment that blockchain creates?
   This allows strangers to do business together, for example, as I do not need to trust someone halfway around the world that I’ve never seen. If we are both using the blockchain to confirm and verify payments, we know that there is no way to scam each other and can therefore trust in the network and not have to trust each other. Therefore it leads to a “trustless” environment which benefits all parties involved.

[Minaca]

@ivan

Homework on Finality - Questions

1. What do we mean when we say that blockchain has transaction finality/immutability?
2. How does this lead to the trustless environment that blockchain creates?

1. Once a block is added to the blockchain, it is physically impossible to remove it. It exists on the network for all time. There is no reversing. Once a block is confirmed, that is it.
2. This promotes Trust because you cannot cancel a payment, or undo a payment at a later time. No one can change a record, ever.

[abhijeetmatondkar]

@ivan

• What do we mean when we say that blockchain has transaction finality/immutability?
• How does this lead to the trustless environment that blockchain creates?

1. What do we mean when we say that blockchain has transaction finality/immutability?
   ==> In a blockchain once a transaction is agreed upon and committed via consensus, the transaction becomes irreversible unlike in traditional systems where by the transaction can be reversed. While it has its own use cases, with blockchain having finality ensures the transaction can be verified and thereby eliminates the need for trust in the entity.

2. How does this lead to the trustless environment that blockchain creates?
   ==> In a centralized or traditional system, you need to rely on the integrity of entity maintaining the system. In a trustless system such as blockchain, you are not reliant on a person or the entity for confirmation of transaction. Once agreed upon and due to immutable nature of the blockchain, your transaction are easily available to be verified

[b2c2d]

1. It is impossible to reverse a blockchain transaction.

2. The system is the trust factor not the user/people.

[Snorlax66]

1. we mean that when a transaction is executed , it is send to the blockchain for verification. after succesfull confirmation, the transaction is final and saved on the blockchain forever.
2. new or fake funds can’t be created because the blockchain will not verify that you have those funds

[Fabrice]

@Snorlax66

we mean that when a transaction is executed , it is send to the blockchain for verification. after succesfull confirmation, the transaction is final and saved on the blockchain forever.

When a transaction is broadcasted, it isn’t yet send in the blockchain, but first in some other data structure called the mempool. This is a list of unconfirmed transactions where miners will pick transactions from to add into a block. You will learn more about it later into the course.

[Stequal]

1. What do we mean when we say that blockchain has transaction finality/immutability?
   Once a transaction goes through, you cant undo it.

2. How does this lead to the trustless environment that blockchain creates?
   In this environment, no one trusts each other, rather everyone trusts the system that is in place. This means that there is no way for people to scam each other as the system records and verifies each transaction.

[Avrg]

1 - Blockchain has finality/immutability because transactions cannot be reversed, once it is verified it proven at that point. It does this by confirming previous blocks on the network and reaching consensus.

2 - This leads to a trustless environment because you are not trusting one person, you are trusting the math which can be verified at any point because of transparency in the blockchain.

[ekaspers]

What do we mean when we say that blockchain has transaction finality/immutability?
It means that when a transaction is approved, it cannot be reversed.

How does this lead to the trustless environment that blockchain creates?
There is no possibility of charge-backs or scams by strangers. You don’t need to know the party you do business with, it is secure by math and protocol.

[Alex_Pala]

1. What do we mean when we say that blockchain has transaction finality/immutability?

• Once a transaction is made, it is final and irreversible; it will remain in the blockchain forever and there is no way to revert it or discarded it. The finality characteristic of blockchain transactions makes them immutable, which means that a final transaction cannot be altered in any way.

2. How does this lead to the trustless environment that blockchain creates?

• In all centralized systems, human validators may potentially be influenced by various factors (sentiments, convictions, mistakes, blackmail etc) and everyone has to trust that they won’t abuse their privilege. In the blockchain networks, the need of trusting some privileged authorities is automatically removed by trusting a mathematically proven method through which a final and immutable result is validated instead.

[Shelby_Ilochonwu]

1. What do we mean when we say that blockchain has transaction finality/immutability?
   -When a transaction has been sent and finalized you can’t have access to it again, you can’t cancel it, or “get it back”

2. How does this lead to the trustless environment that blockchain creates?
   -Transactions can’t be reversed or multiplied or even duplicated. Also making it irreversible makes it easier for strangers to trust one another because when data has been put in it can’t be removed.

[Jackchap]

Once a transaction is complete, it cannot be undone

By having finality, entities acting with each other can trust the result. This trust enables people to believe in the system, and to be able to transact with anyone and ensure that the results cannot be changed.

[Zadkiel]

1. Transaction finality or immutability is described as irreversible transactions that cannot be removed from the ledger. Which creates a trustless network so you can do business with strangers!

2. This leads to a trustless environment on the blockchain because you can do business with anyone knowing every transaction is final and irreversible.

[Gavada]

1. once a transaction is approved on blockchain it´s final, it cant be reversed and it´s recorded for ever

2. the transactions can´t be reversed or disputed, once it´s done it´s done forever and it´s trustless

[Bivan]

@ivan

• What do we mean when we say that blockchain has transaction finality/immutability?
• How does this lead to the trustless environment that blockchain creates?

Finality means the action is final and unchangeable
If one can be sure the action is finalized and immutable ( will always remain in its finalized version, there is no need to trust nor doubt, simply verify

[alanmichael]

1. What do we mean when we say that blockchain has transaction finality/immutability?
   -Transactions cannot be modified or removed, only added. All transactions are public forever.

2. How does this lead to the trustless environment that blockchain creates?

• We can verify everything mathematically and all transactions are irreversible.

[0x00YASH0]

1. Blockchain finality/immutability means that once a transaction has been confirmed and included in ledger, it can not be changed, mutated, or reversed. All sales are final.

2. Because we can verify the network code and ledger we can determine its trustworthiness. If we trust the network and the ledger is immutable we know that even a stranger cannot undo our transaction or charge it back. Verifiable trusted networks make it so the other parties we transact with need not be trustworthy.

[tpen]

1. Blockchain has transaction finality when you can’t do a “take back.” Once it is sent, it is sent. There are no “refunds” and thus, the transaction can only go one way, and not back the other.

2. The trustless environment allows both to trust in the transaction itself, and nothing else really matters in the realm of blockchain. Once the transaction is complete, it becomes a part of the database and cannot be changed unless the receiver decides to send it back to the sender. The sense of “trust” is already implicit in the transaction only, which is the only thing that matters to the network. It is why blockchain has particular use cases, and cannot be the “silver bullet” for all problems.