Homework on Finality - Questions

Blockchain and Bitcoin 101
#362

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been confirmed on the blockchain it is irreversible. Once a transaction is on the blockchain it stays there forever just like a digital stone. Not like with centralised systems where any transaction can be reversed.

  2. How does this lead to the trustless system that blockchain creates?
    Because since the transactions are irreversible you can do business with anyone since trust is not needed because all is verified on the blockchain instead and it stays there forever.

#363

What do we mean when we say that blockchain has transaction finality / immutability?
It means that when a transaction takes place there is no way to reverse it. It remains registered forever, there is no way to remove or back up past data

How does this lead to the trustless environment that blockchain creates?
Create a network that you donā€™t have to trust, you just have to check, when you receive a value, you know that there is no way for that value to get out of your hands, the sender does not have a 3rd person to claim the funds.

#364

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • transactions cannot be reversed and are visible on the blockchain indefinitely
  1. How does this lead to the trustless environment that blockchain creates?
  • once transactions are verified no central authority can refute the charge
#365

Homework on Finality - Questions

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

Blockchain transaction finality and immutability means that once transactions have been transmitted to, and are confirmed by, the network they can never be reversed. Thus, any transactions made on a blockchain become a part of its permanent record and are unalterable.

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

Finality and immutability lead to blockchain creating a trustless environment where trust isnā€™t required of individual self-interested network participants. Instead trust is placed in the impartiality and logic of the underlying code of the blockchain protocol, and the transparency and logic of mathematics itself.

#366
  1. We mean that transactions sent through blockchain cannot be reversed after they are completed.
  2. It leads to trustless environment due to the fact that the transactions are final in blockchain. There is no need for supervision of each transaction.
#367

Blockchain entries are immutable meaning they canā€™t be reversed or changed. Due to the security of the globally distributed decentralized network it is simply too much ā€œworkā€ to change an entry. It would cost too much electricity to replace a series of blocksā€¦plus as the one block seeds the next all downstream blocks would be invalidated. This immutability allows individuals to truly own their own assets for the first time and prevents anyone from confiscating them. Knowing a transaction cannot be simply reversed allows individuals all over the world to transact with each other without having to have a ā€œtrustedā€ 3rd party in between them taking a cut of the transaction and potentially censoring the transaction if they donā€™t agree with it.

#368

  1. When we say blockchain has transaction finality/immutability, this means that once a transaction has happened, it is physically impossible to reverse them because of mining and proof of work.

  2. This leads to the trustless environment that blockchain creates because no one can modify or remove a transaction that already happened, which has been verified by the nodes of the network. This prevents customers from scamming the business by receiving the item then calling the bank to charge back.

#369

  1. There is no way to go back and for example correct anything. A send transaction is final.

  2. Everyone using blockchain know that the blockchain is immutable meaning you donā€™t have to trust any third party.

#370

Homework on Finality - Questions

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

It means all transactions are final. It means that the transaction will permanently be on the blockchain. There is no way to reverse a transaction on the blockchain. This takes the trust aspect away when doing business if you are taking bitcoin as payment

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

You can do business with strangers if payment is done in bitcoin because the buyer canā€™t do a charge back and reverse the transaction, which leaves no need for trust because we can verify with math that the protocol will work as its suppose to.

#371

When we say the transaction is immutable, we mean simply that it cannot be changed. the transaction cannot be reversed.

A trustless environment is created by this, because a ā€œtrustedā€ third party isnā€™t necessary for a financial transaction.

#372

1 The transaction cannot be reversed, its final

2 The trustless transaction makes online retailers confident of purchases, that they will not lose their money, after they delivered the product

#373

  1. ones the transaction is confirmed by the nodes and on the blockhain, itā€™s final, there is no way to roll the transaction back. itā€™s set in digital stone

  2. When you sell something the costumer canā€™t just call a central authority that can reverse the transaction and in that way scam the seller. final is final, no central authority on the blockchain

#374

blockchain has transaction finality because you cannot reverse a transaction or start a chargeback transactions cannot be reversed.
this leads to a trust less environment because you know once you get your btc from anyone it cannot be taken out again by that person later.

#375

[quote=ā€œivan, post:1, topic:8424ā€]
Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once completed the entire chain has agreed that the movement has occurred. The immutability part of this comes if someone would try to change the transaction for a possible double spend or Data Change.
    Once completed the entire chain would need to be changed, so all the other nodes would need to change their held data as well, all of the different nodes would need to agree on this change,

  2. How does this lead to the trustless environment that blockchain creates?
    [/quote]All transactions, final transactions, not the pending transactions.
    Once completed the entire chain would need to be changed, so all the other nodes would need to change their held data as well, all of the different nodes would need to agree on this change
    These also means that no single entity Third party is complete in control or a possible fail point. The contracts or code that operate decentral blockchains can be ā€œTrustedā€ in this respect up to the Functionality and Security of the Code.

#376

  1. It means that once a transaction has been confirmed on the blockchain, that the transaction then cannot be reversed i.e. it is final.

  2. Because a transaction is immutable, this technology may not be suitable for every application and this must be considered. However, the advantage of this immutability is that we can freely do business with strangers knowing that the relationship is not necessarily based on mutual trust, but rather on a protocol where once a transaction is verified, it cannot be reversed. This eliminates all possibility of scams.

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#377
  1. thats mean ones when transaction is send ,its done and noone cant manage anymore. so this is make a transaction a finality/immutability

2.beacause can not trust peer on other side. and once when value is been send,cant recieve back. so must be careful when trust someone

#378

  1. By saying that blockchain transactions have finality we are describing that; once a transaction has happened on the blockchain there is no way to reverse or erase it. The said transaction is final and on the blockchain forever.

  2. It leads to a trustless environment because every transaction is verified mathematically. We are trusting the blockchain protocol and network, not a third party business or single person. Because it is instantly final and immutable this allows us to safely and trustlessly conduct business with strangers if we choose so.

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#379
  1. When a transaction is entered onto the blockchain, it cannot be changed, deleted. taken back or reestablished. If an error is made and entered into the blockchain, it is there forever.
  2. Since blockchain entries are immutable and public, trust issues between parties is not a prerequisite to a contract as neither party can reverse the transaction once applied.
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#380

  1. it means that, once a transaction is done, itā€™s done. thereā€™s no way to reverse it or removed it because itā€™s stored on the Blockchain for ever, where nobody can manipulate or remove data.

  2. because of mining and p.o.w. itā€™s impossible to physically remove or reverse a transaction of the Blockchain, therefore no trust is needed and we can do business with strangers, which is very important!

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#381

  1. A transaction can never be reversed, it has been put into the blockchain and all the nodes have a copy of that blockchain which can never be altered.

  2. A blockchain is a mathematically proven system therefore that leads to everyone using that blockchain to trust it.

1 Like