Homework on Finality - Questions

Blockchain and Bitcoin 101
#3935

IVAN ON TECH ACADAMY QUESTONS ON FINALITY/IMMUTABILITY

2/17/2021

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    This means once a transaction has been verified and placed on the blockchain it cannot be changed, cancelled or reversed this is because of the assumption that before any transaction is posted on the blockchain it has been verified and agreed upon to be accurate by all participants

  2. How does this leads to the trustless environment that blockchain creates?
    This leads to a trustless environment in the sense that if two or more strangers from any part of the world are creating a transaction no matter who is the giver or the taker, buyer and seller they do all transactions with the confident that if the transaction goes thru each will be satisfied as promised. They don’t need to worry about trying to trust but will have the confident that all verifications are accurate since those who does these verifications use mathematical solutions and are rewarded for their proof of work.
    Gina

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#3936

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been approved it is added to the blockchain and there is no way to change it. It is also always able to be seen and verified.

  2. How does this lead to the trustless environment that blockchain creates?
    A third party doesn’t have to broker the transaction. The trust is placed in the math within the protocol.

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#3937

Blockchain has transaction finality which means that once a transaction has occured, it cannot be reversed.

This leads to a trustless environment because you cannot get transactions reveresed by calling the bank and disputing a claim.

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#3938
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once we send a transaction we won’t be able to recover or change it as the blockchain isn’t able to do this.
  2. How does this lead to the trustless environment that blockchain creates?
    You don’t need to worry about transactions being reversed as you can’t change anything after the network has confirmed your transaction. Do keep in mind if you send a transaction you also won’t be able to recover it.
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#3939

  1. What do we mean when we say that blockchain has transaction finality/immutability? Once your transaction has been processed there is no way to cancel or reverse it.

  2. How does this lead to the trustless environment that blockchain creates? There are no intermediaries you can call to have the transaction changed. The trust lies in the math not in people to approve or deny transactions

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#3940

  1. Transactions are irreversible.

  2. This creates an environment where people don’t need to trust each other (customer or client) in order to trade, because a transaction is final.

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#3941
  1. What blockchain has transaction finality is that it’s been finalized when sending someone cryptos which the system can be trusted but not the people you don’t know especially the crooked ones.
  2. Blockchain may be a great system to use but the trustless environment isn’t like accidentally purchasing and get chargeback which is all digital to use that can be permanent when finalized.
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#3942
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    That once a transaction clears, it cannot be reversed or modified. It’s finalized.
  2. How does this lead to the trustless environment that blockchain creates?
    There are no chargebacks. An impartial 3rd party records the transaction and they are final and immutable and can be verified by mathematics. The trust is put only in the protocol.
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#3943

  • What do we mean when we say that blockchain has transaction finality/immutability?
    It means that there is no way to reverse, erase, or otherwise alter a transaction once it is on the blockchain. It will be there forever

  • How does this lead to the trustless environment that blockchain creates?
    Because users do not have to trust each other or any central authority, only in the network. If they believe that the network is acting properly, they need not worry about the other party in a transaction or in any other actors.

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#3944

  1. It means if you made a transaction from your account to another account you will not be able to reverse the transaction.

  2. You don’t have to trust a third party who confirms your transaction, once the transaction is made it can’t be changed by anyone.

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#3945
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    A. Once transactions are confirmed they cannot be reversed.
  2. How does this lead to the trustless environment that blockchain creates?
    A. Gain trust that a consumer cant take back transaction. The transaction is public so the transaction cannot be disputed.
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#3946

1 What do we mean when we say that blockchain has transaction finality/immutability?
Once a transaction has been approved it cannot be physically cancelled. This is why it is immutable.
2 How does this lead to the trustless environment that blockchain creates?
Funds cannot be recreated but only get created during mining.

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#3947
  1. What do we mean when we say that blockchain has transaction finality/immutability? Once it is approved and sent it cannot be reversed.
  2. How does this lead to the trustless environment that blockchain creates? noone can transact then goods and then cancel payment.
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#3948

  1. No reverse so when the transaction is made its done, its literally not possible to get it back.

  2. Because if the payment is done and you prove it, you can’t go to a bank or to satoshi to say hey, he scammed me, give me my money back, the person have to send it back him/her self.

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#3949
  1. Once a transaction has been confirmed and added to the blockcain it is irreversible, there is no way to go back and the transaction is now permanetly stored in a block on the blockchain forever.
  2. This leads to a trustless environment as the data stored in a blockchain is immutable, once your transaction is verfied you are safe in the knowledge it can not be altered in any way. You do not have to know or trust the other party involved as the blockchain verifys the data, and you are putting your trust in the maths and protocol of the blockcahin not the 3rd party.
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#3950
  1. Transactions cannot be reversed
  2. The transactions are verifiable, and cannot be reversed, therefore reliable.
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#3951 
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?

A1. Blockchain has transaction finality/immutability means once a transaction has occurred it can not be reversed from the blockchain network as a result of mining i.e. proof of work (PoW). Through mining, electricity is consumed and therefore blocks are created. Once a transaction is verified it is recorded in the ledger which then is part of the block. The data in the ledger i.e. block is recorded permanently.

A2. Finality/immutability lead to the trustless environment that blockchain creates as transactions are verified through mathematical algorithms and protocol i.e. code. This makes the blockchain network trustworthy and not the individual parties involved in the transaction. In a blockchain network individuals are not required to trust third parties in order to execute transactions. The network itself verifies whether or not a specific transaction is valid.

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#3952

1. What do we mean when we say that blockchain has transaction finality/immutability?
When transactions happen they cannot be taken back. Once added onto the blockchain there is no means of reversing that transaction and you obtaining a refund. A transaction is immutable as it cost electricity for the miners to write this onto the block chain. The only thing that can be done is a new transaction has to be created and entered into the blockchain however there is no institution that demands money is ever returned to someone.

2. How does this lead to the trustless environment that blockchain creates?
A trustless environment is created in which people can create transactions and work with strangers as there is no need to trust them when the network does all the work to the protocol. Everyone knows what the environment is like and how the network performs people can go about their business like clockwork without having fear of scam or malice.

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#3953

1- The transaction is irreversible.

2- Transactions are confirmed after mathematical verification that can’t be fixed.

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#3954
  1. What do we mean when we say that blockchain has transaction finality/immutability?

It allows strangers to transact each other by trusting the network. Transactions cannot be reversed.

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

It removes the need of trust between parties.

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