Homework on Finality - Questions

Blockchain and Bitcoin 101
#21
  1. What do we mean when we say that blockchain has transaction finality/immutability?

Once a transaction is in the chain (at least 6 conf). it will be permanent and cannot be changed.

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

There is no 3’rd party needed to approve transactions, you do not need to thrust anyone but yourself to send a transaction, hence ‘thrustless’

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#22

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Means that once a transaction has been verified in the blockchain, it cannot be reversed or edited. It is final.

  2. How does this lead to the trustless environment that blockchain creates?
    Strangers can be trusted that they cannot undo a transaction that they made. It’s in the public ledger and verified by several nodes.

#23

  1. When we say the blockchain has finality, we mean that all transactions are final and irreversible. There is a permanent, final record on the distributed ledger.

  2. The blockchain creates a trustless system due to finality. The fact that transactions cannot be reversed removes the need to trust the person you are dealing with and transfers this trust to a trust in the system.

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#24
  1. Once a transaction is done, it cannot be resevrsed or edited.
  2. We trust the protocal that once a transaction has happened, it can never be reversed so u do not need to trust intermidiary like banks or the customers to behave in good faith
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#25

1. What do we mean when we say that blockchain has transaction finality/immutability?
That means that a transaction cannot be reversed anymore and is forever on the blockchain. The security of the network makes it impossible to revers the transaction so this means finality and immutability.

2. How does this lead to the trustless environment that blockchain creates?
Depending on how secure the network is, once finality/immutability kicks in, the transaction is certain.
So there does not have to be any more trust between the transacting parties.

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#26

  1. When it is said that blockchain has transaction finality/immutability it means that once a transaction is put into the blockchain it is final. No taking away from or altering of the transaction.

  2. It leads to the trustless environment that blockchain creates because now it is a thing of mathematics to verify wether a transaction is valid or not. And the thousands of nodes who come to an agreement on the validity of any transaction presented.

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#27

[1. It means, that there is no way to remove or revoke a transaction. If you send money to someone, you can´t ask for a refund or something. If you send to much or to the wrong address, you can´t redo it-your transaction is final

  1. For you as the receiver of the transaction, you don´t have to trust the sender. He/She can´t go to the bank and say, that the transaction was a mistake or something. After the transaction, was confirmed by the network, there is no way back.
    As a sender, you don´t have to worry, that the received party claims not to received any funds, cause it´s shown on the blockchain. But if you´re buying something, you have to trust the party, that they are going really to send you the goods.
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#28
  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • It means that once the transaction has happened, it has happened, there’s no way to get it back, it will be on the blockchain forever and never again edited or changed.
  1. How does this lead to the trustless environment that blockchain creates?
  • Since the transactions can not be manipulated, we can do business with strangers without having to trust them. No trust is needed!
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#29
  1. That once a transacction is confirmed it can not be undone.
  2. Because you only need to trust in the protocol, in verifiables transactions.
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#30
  1. What do we mean when we say that blockchain has transaction finality/immutability? It means that a transaction on Blockchain cannot be reversed or changed
  2. How does this lead to the trustless environment that blockchain creates? The effect of not being able to reverse a transaction means that transactions with unknown parties do not need a ‘trust’ element.
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#31
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    once transaction are in the blockchain it can’t be removed or reversed and it is there for ever
  2. How does this lead to the trustless environment that blockchain creates?
    there is no need for trust between people. instead we trust the system.
1 Like
#32

  1. We mean that once a transaction is executed, it is added to the blockchain and is permanent. There are no ways to do callbacks and refund your funds, or reverse a transaction once executed.

  2. The environment becomes trust less because you do not have to trust the other party to ensure your transaction occurs, the network ensures this with finality.

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#33

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

It means that a transaction can`t be reversed/undone or changed. Although Ivan said in the lecture “after confirmation” which suggest there is time-window in which things can be undone or changed. But I do not understand how. Or am I drawing a conclusion which is not correct? Is there anyone who can help me out with this one?

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

There is no third party involved.And both party have take responsibility for the agreed terms since it is
impossible to change or undo.But this relative because in many cases both side of the transaction are not done simultaneous. In case off online shopping you often pay upfront so you still have to thrust the other and the delivery-service.

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#34
  1. It means once a transaction is confirmed, it can’t be reversed or Charge backed and the recipient and sender is confident that noone can cheat.
  2. It makes both sender and receiver and everyone else confident that the transaction happened and settled at same time and hence need no trust from anyone to be kept.
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#35

1- Once transaction is done, it can not be revert or requested back
2- Since the transactions are final, then you don’t need to trust anyone to work with cause all the trust are on the network. you can work with someone anonymous with no fear

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#36

Homework on Finality - Questions

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

Transactions can’t be reversed.

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

No one can claim charge back, once the transaction is done, it is done. But it can born question what if you will get a product, but it is not like in the offer or you want to use your right to send back ordered product? Yeah, you can always use police or something, so in the end it should work good.

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#37
  1. What do we mean when we say that blockchain has transaction finality/immutability?

Once transactions are confirmed by the blockchain they can never be changed.

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

If a payment is sent to someone it can’t be cancelled or reversed. It’s impossible
to remove it.

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#38

  1. a Transaction can not be reversed or cancelled once it was made. It is permanently part of the blockchain.

  2. You don’t need to trust that your transaction will happen as intended, when a transaction is done you have know and have proof of the transaction, that can not be manipulated, resulting in a trustless environment for transactions with anyone participating on the network.

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#39

  1. When a transaction is verified, it cannot be changed.

  2. Since it can’t be changed, it removes the trust needed by the intermediaries.

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#40
  1. Finality means the transaction cannot be changed once it is entered into the blockchain. This is physically impossible.
  2. Blockchain’s environment is trustless because users do not have to rely on people but instead rely on the mathematics programmed into the blockchain protocol.
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