Homework on Finality - Questions

Blockchain and Bitcoin 101
#3835

  1. Once a transaction is done on the network it cannot be reversed

  2. There is no need for each party in a transaction to trust each other, the network acts as a verifiable intermediary

2 Likes
#3836
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been confirmed, it is set in stone and cannot be undone.
  2. How does this lead to the trustless environment that blockchain creates?
    This leads to a trustless environment by removing the ability of a recipient to scam a provider by canceling a transaction once the desired product is received.
2 Likes
#3837

  1. Once the transaction has been executed it cannot be undone. It is recorded forever.

  2. The trust is in the protocol of the blockchain.

1 Like
#3838

  1. it means that once a transaction has made, there is no way back. it’s permanent. no way to change it.

  2. you trust nothing but the sistem!!

1 Like
#3839
  1. What do we mean when we say that blockchain has transaction finality/immutability?

once transaction is confirmed and placed in the block, it cannot be reversed, there are no chargebacks

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

all transactions are publicly visible and we know there isnt 3rd party that could edit the records

1 Like
#3840

A blockchain transaction can not be retracted, exchanged or changed in anyway due to the decentralized nature of the system. There is no one or group who is able to adjust or mediate the transaction.

The inability to adjust or change the transaction leads to a trustless environment because there is no one to trust. The system of equations is computed and that is the end of it.

2 Likes
#3841

1, it means once the transaction is been added to the blockchain it cannot be reversed by anyone,

2, for the same reason, you do not need to trust anyone you do business with because ones the transaction is on the chain, no refund is possible, therefore there is no way to fraud,

Altho I have a question looking at the other side, what if Im the buyer and I purchase something paying by crypto, my transaction is done, but I never get that I paid for. I would imagine that all participants of the transaction involved are have to be on the blockchain, let me give an example. tesla decide to take payment of crypto and they provide home delivery of the car, I pay prior the delivery and Im waiting but the car never arrives. They insist that the product has been delivered and signed off for, what would happen then?
I know this is a unlikely, but it can be any other product or service.
thanks for the answers.

2 Likes
#3842

What do we mean when we say that blockchain has transaction finality/immutability?
Once a transaction has been completed it cannot be reversed or changed.

How does this lead to the trustless environment that blockchain creates?
You don’t have to trust a party just the network

1 Like
#3843
  1. Every transaction is final, can’t be reversed
    2)You can verify that every transaction is final and legitimate.
1 Like
#3844
  1. What do we mean when we say that blockchain has transaction finality/immutability?

After a transaction has been written to the blockchain and confirmed by neighboring nodes, it is no longer changeable. In this way, transactions can’t be reversed within the system. To ‘get your money back’ involves contacting whoever you sent the money to and convincing them to send your money back to you in a new transaction. No central authority can confiscate the money from the recipient and restore it to you.

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

The iron immutability means that all participants are required to recognize their own authority in creating the transaction in question, and must respect the system’s designed limitations and work through and around them. The finality of each transaction adds to the overall security of the system and makes trust a personal choice instead of an implied obligation or unrecognized assumption.

1 Like
#3845

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transactions are final. Once you make the transaction you will not get it back.

  2. How does this lead to the trustless environment that blockchain creates?
    Transactions are verified and publicly open to see.

1 Like
#3846
  1. What do we mean when we say that blockchain has transaction finality/immutability?

When a transaction is written there is no way to change it or to reverse it.

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

Because a blockchain transaction is immutable , it is not required to trust someone. Everything is auditable.

2 Likes
#3847

I’m not sure, Bitcoin doesn’t solve this problem. It works well for financial txs and digital content.
Some markets offer features like escrows which lock the funds until the customer receives the product and only once its received the funds are released to the merchant :slight_smile:

2 Likes
#3848

that makes a lot of sense, I was thinking of this in general on blockchain rather than bitcoin network only.
thanks for getting back to me on this

#3849

  1. Finality/Immutability means all sales are final, there is no way to get a refund of any purchase of any kind.

  2. This leads to being a true business transaction and not trust. You go by the rules that are given and not by anyone’s word.

1 Like
#3850

1- Blockchain has transaction finality and immutability because of proof of work/ mining (irreversibility)
2- It removes trust as both parties can verify previous transaction history with confidence and assurance, ethical and sincere deliveries of past projects.

1 Like
#3851
  1. Once it goes on the ledger there is no turning back. It stays on the ledger forever.
  2. You can work with strangers and not have to worry about trusting anyone. It becomes a trustless environment.
1 Like
#3852
  1. When a transaction is made it’s recorded on the blockchain and cannot be reversed, modified, or deleted.
  2. If a merchant sells a product to a consumer, the transaction is instant. Funds are sent from consumer to merchant and the transaction is recorded on the blockchain. The merchant doesn’t have to worry about the consumer cancelling the transaction or reporting it as fraud to the bank and getting their money back.
1 Like
#3853
  1. It’s final. No refund
    2.you can get paid without worrying t
1 Like
#3854

  1. Because block chain is like a digital stone, we can only add data but cant remove it. Once transaction is written on it, its final, it cant be removed. The data is immutable.

  2. Since the data is immutable , you can verify all transactions soo we dont need to trust anymore.
    Dont trust, verify!

1 Like