Homework on Finality - Questions

Blockchain and Bitcoin 101
#5178
  1. Transactions can’t be altered or removed. They are permanent on the distributed ledger.
  2. There’s no need to worry about charge-backs or customer/retailer (so to speak) disputes as the blockchain transaction relies purely on mathematics.
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#5179
  1. Once the transaction is done it’s on the blockchain and can’t be reversed.
  2. People don’t have to rely on counter-parties to handle the transaction.
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#5180

1. What do we mean when we say that blockchain has transaction finality/immutability?
Once confirmed and validated, transactions cannot be changed or altered in any way. It provides strong security and ingrains trust.

2. How does this lead to the trustless environment that blockchain creates?
The security component leads to trust in the protocol and that creates a “trustless environment” since everything can be proven by fact.

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#5181

  1. transaction finality describes how once a transaction is made, it is final and can not be undone. at all. ever. period… without >50% of the network to help out… in most cases…

  2. this removes the need for trust since you essentially have a one-way one-time transaction that commits funds from one to another in exchange for whatever… i.e. it removes the need for trusting the SENDER of funds, but not the RECEIVER (i.e. one must trust the receiver of funds to send whatever in exchange unless there’s any kind of attendant escrow service… to help mediate the barter).

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#5182
  1. When a transaction on the blockchain has finality, that simply means that the transaction is complete and cannot be reversed. Once the transaction has been confirmed on the blockchain, it cannot be retracted.
  2. This leads to the trust-less environment that blockchain creates due to the blockchain being a global infrastructure of standard protocols. This creates high security for the blockchain. Also, with the blockchain following protocols of finality, the blockchain doesn’t have to put trust in third-parties.
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#5183

I do enjoy the diagrams you create to respond to questions

#5184

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability? We mean that transactions on the blockchain are final. They cannot be reversed or changed. This does have advantages as it does not allow customers to make dishonest claims. However, it can also have disadvantages, for example, if a buyer does not do sufficient research or the seller lies then dishonesty can happen. Blockchain technology is brilliant but may not be suitable for every kind of business.
  2. How does this lead to the trustless environment that blockchain creates? It enables strangers to do business in a trustless way - relying on maths, laws and protocols governing the blockchain. - using a global infrastructure of standardized protocols. No reliance of trust of 3rd parties. An example would be sending money from one country to another. I have had instances where a 3rd party at a bank reverses or stops the transaction for no good reason and it is time consuming to sort out the problem. With blockchain technology money can be sent anywhere and to anyone without any issues or interference of 3rd party incompetents who occupy many positions of responsibility.
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#5185

  1. No trust is involved. No 3rd party to worry about.

  2. Transactions can be verified mathematically so it’s not possible to reverse your transactions.

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#5186

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • The transactions cannot be reversed or changed after they have been completed.
  1. How does this lead to the trustless environment that blockchain creates?
  • Forces certain bad actors out due to the inability to reverse transactions, even if they did receive their good/services.
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#5187

  1. It means that once the transaction has happened, there is no way to reverse it. It is permanently on the blockchain.

  2. Since it removes the need for trust, people can do business with strangers and other customers without the risk of chargebacks and other scams. Once conditions are met and the transaction happens, it’s permanent.

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#5188
  1. A Blockchain transaction has finality, meaning once a Blockchain transaction has been confirmed it cannot be reversed. A Blockchain transaction has immutability, meaning that no details on that transaction can be changed.
  2. Finality and Immutability adds to the “trustless” environment of a Blockchain, because parties can rely on a Blockchain transaction not being subject to fraud.
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#5189

  1. It means you can’t reverse the action once it is verified.

  2. change of mind of person involved won’t affect the contract signed, thus making it an trustless environment.

2 Likes
#5190

  1. Blockchain has transaction finality/immutability means that it cannot be undone, it is built off a trustless system.

  2. It leads to a trustless environment because you can do business with anyone and not have to trust them only trust the network. Unlike some scammers who purchase and charge back.

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#5191

  • What do we mean when we say that blockchain has transaction finality/immutability?
    We mean that a transaction is in itself Final, with no ability to be reversed or changed.

  • How does this lead to the trustless environment that blockchain creates?
    It leads in this direction by removing the need to be worried about the other person involved in the transaction being a scammer (i.e.make a purchase and then chargeback).

2 Likes
#5192

1.once a transaction is confirmed it cannot be changed or withdrawn
2. By trusting the network and how it was coded and designed you don’t need to trust the person you are doing business with

2 Likes
#5193
  1. Once that transaction has been confirmed, it cannot be reversed or changed.
  2. The blockchain mathematically verifies the capabilities of transactions, meaning you can depend on you receiving money when sent it and vice versa.
2 Likes
#5194
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transactions happens, there is no way to get it back. If customers can call up a bank and perform a charge-back on retail services, blockchain transactions does not have this problem.
  2. How does this lead to the trustless environment that blockchain creates?
    By making transactions irreversible, strangers can trust one another due to the inability to perform a refund or a cancellation. Verification allows transactions to happen so that “trust” is not the sole way they can be performed in confidence.
2 Likes
#5195

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    -Once the transaction has gone through, it cannot be undone under any circumstance.

  2. How does this lead to the trustless environment that blockchain creates?
    -In todays world, transactions can be undone all the time via dishonesty. Quite literally, it is a trust system, betting on the fact that the majority of the people will be moral and not abuse the system. Though not widespread or neccesesarily common practice, banks (centralized entities) can do chargebacks by dishonest customers, or merchants. its all trust based. In blockchain, we have the opposite of all of this. Everything etched in stone in the block train, all verified, and able to track.

2 Likes
#5196

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

This means that when we make a transaction, it is irreversible and immutable in the blockchain. For example, if you sent your bitcoin to an address and you didn’t want to go back, because every signing transaction is immutable and final. Unlike the bank, which can recall your funds if necessary and under certain conditions and authorization.

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

2 - The simple fact that the transaction, once carried out is recorded is irreversible and immutable because time-stamped in one of the chains of blocks shows that the system is a computer mathematical process acting as a system of transfer of value without confidence. Unlike or, from your account you make manually or by your cb the payment of the necessary sums to the entity concerned by it. The bank is a trusted intermediary, a third party who, if you have a positive balance, owes you the positive amount it has posted for you. In other words, you are not really the owner of your funds but a creditor to whom the bank recognizes its debt to you by the accounting entry that represents the positive balance of your account.

2 Likes
#5197
  1. It means that once a transaction has occurred, it can’t be reversed. No trust involved.
  2. It leads to everyone all trusting the math behind the blockchain, not having to trust the other users.
2 Likes