Homework on Finality - Questions

Blockchain and Bitcoin 101
#3335

  1. What do we mean when we say that blockchain has transaction finality/immutability? Finality means once the transaction has been done, it can’t be undone. It keeps certain types of scams at bay such as ordering a product and then once you get it you tell your bank this transaction never took place or you didn’t get what you wanted. Immutability means you cant change the data because all blockchain has the same data.

  2. How does this lead to the trustless environment that blockchain creates? Because transactions are verified by the blockchain and not just one main server.

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#3336

My answers to the Finality homework

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means the transaction has been confirmed and it has been written to the Blockchain forever and can’t be reversed.

  2. How does this lead to the trustless environment that blockchain creates?
    It has all been verified and approved mathematically by miners.
    Therefor there is no need of trust between two strangers making business with each other. They will both unite to “Trust” instead the network of miners who verify if transactions are correct.

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#3337
  1. Once a transaction has occurred, it is final. It cannot be changed. It is “set in stone”.
  2. You don’t have to know who you have transacted with. All the proof is in the blockchain. No trust needed. Just look at the facts.
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#3338
  1. Means that transaction cannot be reversed. Like a rock ledger, once it´s on the blockchain, is there forever.
  2. Because keep the trust out of the equation. You trust on math and physics.
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#3339
  1. When a transaction is added to the chain it is final and cannot be undone.
  2. Once a transaction is on the chain, one has the certainty it is and it will be there and does not have to trust it will not be reversed or is a fake.
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#3340

once it’s transferred or paid it’s final. there is no way going back and cancel. that’s what makes it trustless. you don’t have to trust someone to do transaction for u. it’s verified mathematically

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#3341

Finality means it can’t be undone.

It’s trustless because it is easily traced.

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#3342

once a transaction is confirmed, it can not be reversed and the record remains forever

the trust is based on trust in math

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#3343

  1. All transactions are final. No changing them.

  2. It becomes a trustless environment. Lack of a 3rd party keeps transactions from being reversed or refunded.

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#3344

1.You cannot reverse the transaction on the blockchain and it is final no trust required.

  1. The transactions are trustless by using math to prove the physical blockchain is complete and accurate each transaction.
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#3345

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

An approved transaction by the network cannot be reversed or changed.

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

The system builds trust through math, clear rules and decentralized decision making.

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#3346
  1. We mean that blockchain transactions are irreversible.
  2. If a businessperson provides a good or a service and is paid in cryptos, he or she knows for sure that he/she can keep the payment. There is no way for a dishonest customer to snatch it back, for example via the bank or credit card company. The businessperson doesn’t need to establish a personal basis of trust with customers. The risk of mailicious social engineering, theft, fraud is reduced to zero in this respect.
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#3347

A) transaction cannot be reversed
A) You do not have to trust the customer to pay bc the transaction cannot be reversed

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#3348
  1. Once transaction is confirmed, there is no way(except convincing all participants) to reverse it
  2. Everyone knows how the system works and follows the rules that can not be changed
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#3349
  1. Can’t be undone
  2. No one can mess with the system
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#3350
  1. What do we mean when we say that blockchain has transaction finality/immutability?

The stories of charge-back evident on various social media sites from individuals selling items, as well as some buyer’s behaviors, made it evident to me that I would not be opening a web store or even sell some unneeded items. As Ivan alluded to, the web started out with a strong buyer beware. Blockchain does not allow such charge-backs which means once a transaction is sent, there is little to no recourse available to regain the funds by the sender. Thus in cryptocurrency it is sender beware and at the least sender be cautious. Finality means the transaction, once completed is in the chain and cannot be removed. This is due to the nature of addition to the blocks is the only allowed transaction, no deletions.

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

All transactions, once completed are on the chain for as long as the chain exists. This is the verify component that allows trust to be primarily at the level of the math, physics, and protocols. Trust is not utilized at higher levels than the environment itself. An environment that is distributed, transparent and immutable leads to the verification which is “trustlessness”.

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#3351

But if you buy from a trusted vendor wich reputation is important, in case you need your money back, the vendor can always pay you back with a new immutable transaction wich you can proof on the blockchain.

#3352
  1. What do we mean when we say that blockchain has transaction finality/immutability?

1A: A blockchain transaction has finality/ immutability as transactions are physically impossible to reverse or change, only new transactions can be created.

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

2A: Blockchain creates a trustless environment though the creation of new blocks (containing transactions). Once a transaction has been completed and agreed upon by the network it is added to the chain. With a bank or centralized intermediary customers can claim fraud or just say the purchase was an accident, which opens the doors to a whole host of bad actors to exploit this system of trust).

Sidenote: Having to trust someone is not a good thing (trustless = a system where trust is not needed to function). Why involve trust when it’s not needed anymore? Enter blockchain.

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#3353

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means that transaction can not be changes, once its made it is not possible to reversed or cancel it once it has been confirmed.

  2. How does this lead to the trustless environment that blockchain creates?
    Because you can create business with strangers and do not trust them. The business is not reversible once its confirmed and there is no third party involved.

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#3354
  1. After the transaction is made, you can’t reverse it, you can’t regret or take your money back, transactions are only one way.
  2. Information held and being checked by the people mining can’t be removed or modified.
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