Homework on Finality - Questions

Blockchain and Bitcoin 101
#4938

  1. Transactions can never be reversed or funds returned. Once they are sent it is verified and becomes final.

  2. This creates a trustless environment because anyone can use the protocol and expect the same results which can be verified mathematically through the ledger so trust is not required.

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#4939

  1. Once transaction is accepted you cant reverse it and all transactions are public.

  2. Everything is verified and irreversible therefor making it trustless.

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#4940

  1. It means that a transaction that is saved on the blockchain cant be removed or cant be reversed.

  2. This lead to the trustless enviroment because it prevents scams to happen, once a transaction is made and aproved it cant be removed.

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#4941

  1. Whatever is done, is done. No going back. No picking up the flag.

  2. A sense of security comes from permanence.

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#4942

  1. Once the transaction is accepted to the ledger there is not way to reverse it.

  2. This helps to ensure there is no fraud.

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#4943
  1. Once the transaction is approved, there is no way to take it back or remove it
  2. There is no way to take back what has been spent and the transaction ledgers are immutable, thus we can make transactions with strangers knowing that they won’t be able to cheat the transaction by making refunds
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#4944
  1. Transactions verified and included in the blockchain cannot be modified, deleted, or reversed.
  2. Miners are incentivized financially to include transactions in the block chain. Once inluded, the payments cannot be reversed like in fiat banking, which means the payment receiving parties do not need to trust the other end.
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#4945

  1. Once a transaction occurs - it is final - there is no way (once the transaction is confirmed) to reverse that specific transaction.

  2. Strangers can confidently make transactions with one another where they don’t have to question the motives of the other party; they only need to trust the code of the system/network/protocol.

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#4946

  1. Once a transaction is finalised it cannot be altered, Sent back or cheated which makes it final and immutable.

  2. It’s trustless so you can work with strangers or whoever because we believe in the system, the maths and therefore everything is transparent.

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#4947

Because blockchain is immutable, no transaction can be reversed or cancelled. It’s permanent.

This enables trust between all parties - we can trust the protocol and maths involved instead of each other, Everyone can easily verify the single source of truth.

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#4948

1.Transanction can;t be changed or removed.
2.Everybody can verify every transanction.

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#4949
  1. That it is not possible to revert it.
  2. You cannot cheat by calling your bank to reverse the transaction or do not send material for the transaction to happen
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#4950
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    The record exists on the blockchain forever and cannot be tampered with.
  2. How does this lead to the trustless environment that blockchain creates?
    Transactions on the blockchain can be verified and so trust is not necessary.
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#4951
  1. It stays in blockchain forever and cannot be undone.
  2. Nobody can buy something and reverse the transaction.
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#4952

Finality in the blockchain means it cannot be changed. It means you do not have to trust a person…all sales are final.

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#4953

Homework Finality

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

Immutability - No participant can modified a transaction after it has been recorded on the ledger. Doesn’t matter who you are, you just do not have the power to do that. If an error occurs, a new transaction must be used to reverse the error. At that point, both transactions will be visible on the ledger. The first transaction, considered an error, will always be visible once it is recorded.

Finality - In a blockchain network, there is only one source of truth. There is only one ledger for the whole network. To know who owns what, or to study a particular transaction, there is only one place to go.

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

By the feature of finality, blockchain creates the trustless environment meaning that it removes trust in the chain of blocks and makes it possible to trade with strangers. This enables trust between all parties - we can trust the protocol and maths involved instead of each other.

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#4954

  1. Transaction finality/immutability in other words means all sales are final. Once a transaction is made, it is physically impossible to reverse it.

  2. This leads to a trustless environment because of the decentralized network. People can transact with high confidence, and not worry about a technical issue or bad customer.

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#4955

Finality

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

Once a transaction has been made and verified it can never ever be undone or changed. If a mistake was made a new transaction would have to be made to get back any funds.

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

No chargeback is possible. If I for example paid for a jacket online with BTC the company that sold me the product can be sure that they have received and more importantly will KEEP the payment that has been made, hence TRUST isn’t needed.

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#4956

What do we mean when we say that blockchain has transaction finality/immutability?
Once the transaction has been recorded on the blockchain it cannot be erased or manipulated.

How does this lead to the trustless environment that blockchain creates?
The data is visible to everyone in its original and unmodifiable form. Because of the immutability of blockchain, there is no trust needed. Everything is already transparent on the protocol level.

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#4957

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transaction finality refers to the idea that once a transaction on the blockchain is confirmed, there is no way to remove it. It is FINAL.

  2. How does this lead to the trustless environment that blockchain creates?
    It removes the ability to do ‘chargebacks’ (often scams) and makes it so everyone can see (and thus verify) every transaction that takes place on the blockchain. Don’t trust, verify. :wink:

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