Homework on Finality - Questions

Blockchain and Bitcoin 101
#5278

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

    It means that when a transaction is added to the blockchain it won’t be able to remove it or change it.

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

    That means that we can verify the information. If the transaction is valid there’s no need to trust anyone. It’s been proven so.

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#5279
  1. That mathematically once a transaction has become complete there is no reversing
  2. Everything can be verified via mining and proof of work
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#5280

1.) Once a transaction has taken place, it is recorded on the ledger and is distributed to all nodes in the network. These transactions are final and cannot be changed.

2.) Nobody can change the ledger by reversing or altering any past transactions. The rest of the network would notice their copies of the ledger don’t match and consensus would not be achieved.

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#5281
  1. It means once the transaction is made, it is final and cannot be reversed.
  2. Strangers can do business with each other, because they are trusting the network.
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#5282
  1. it means when a transaction is done it will be written in the blockchain and stay for always can not be reverse.
    2…so immortality is the create a trust less system which means we don’t trust to anyone only trust the network.
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#5283

  1. Confirmed transactions are settled completely. There are no charge-backs.

  2. It lets separate parties transact independently from a third party middle man, so neither of them can abuse privileges or protections that are commonly put in place in traditional finance.

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#5284
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    A transaction can’t be deleted or modified and it stays on blockchain forever, unless the majority of participants agree to change it. Thus, transactions are final.
  2. How does this lead to the trustless environment that blockchain creates?
    It allows us to do business with strangers and just trust the system for related payments. The transactions are public and we also don’t have to trust a 3rd party.
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#5285

  1. We mean that once a transaction has been made, it can’t be undone. Unless almost all participants agreed to do so, which is quite difficult currently.

  2. This creates trust because it enables completely strangers to transmit value withouth having to trust each other, just the system beneath.

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#5286
  1. Blockchain has finality by making it to where every transaction is in stone (immutability) it’s permanent unless you control the entire blockchain or have control/sway over the other controllers.
    2.Blockchains trust is that the code can not be changed hence finality again, if you had a trusted third party, they could “lose” the record of a transaction. on the blockchain this is not possible.
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#5287

  1. Finality/Immutability simply means that once a transaction happened, there’s no way to delete, edit, or reverse it. Its record stays in the digital ledger forever. This takes us to the kernel of blockchain that one can only add a block, but can’t delete it.

  2. Since there will be a permanent record of a transaction, the recipient party, therefore, cannot claim otherwise.

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#5288
  1. Once the transaction goes through you cant reverse it.
  2. There’s no trust needed because the network verifies the transactions.
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#5289

  1. It means that ones as transaction has been made it can not be reversed it can not be deleted. The process is a one-way street. The network structure makes it like crafted in stone.

  2. The code has the rules written in it, nobody can change it. I do not have to trust in people, companies, entities…I only have to trust the math and the code and assume there were no human errors in the code or smart contracts. But these contracts and systems get tested and verified. The code is open can be seen and verified everywhere. What in a classic system would be risky deal with a stranger in which case you do not know the name or phone number or address would be in the world of blockchain and crypto no problem, the network verifies and holds the assets, the blockchain has the rules of the engagement imbedded and nobody can change them.
    Summarizing that means the trust is part of the build in structure of the system/ network.

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#5290

  1. That it is not possible to reverse a transaction once it is final.

  2. Because every transaction is trustless and verified mathematically.

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#5291
  1. finality/immutability is defined for this purpose as permanent and can not be modified.
  2. The nodes trust each other (e.g. BTC)
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#5292

1: This means that the person who made the transaction cannot perform a chargeback. In the early days of the web, merchants could be the one scamming, but now it is more and more the customers who take on this role. When a transaction is made on the blockchain, that information is immutable and cannot be altered.

2: This helps create a trustless environment where the protocol and math behind the network is what is to be trusted, rather than one person or group.

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#5293

1 - Transaction Finality refers to the irreversible nature of the transaction on the network and this deters fraudulent behaviour between parties.

2 - Transactions are verified through the blockchain and we are basing the finality of the transaction on actual physics rather than an than the analysis of an intermediary.

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#5294
  1. Once a block within the chain is made, it can’t be unmade. Any transactions within it are set in stone and can’t be reversed.
  2. The immutability means security as we know that people can’t just reverse their transactions (like you’d be able to when calling a bank on an online purchase). We don’t have to thrust people not to scam us, once it is on the blockchain we know a transaction is vallid.
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#5295
  1. Finality of blockchain explains that once a transaction is executed it cannot be reversed or altered.
  2. Finality creates trustlessness because other participants are sure that you cannot recall your transaction and that this transaction is public and anyone can see it.
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#5296
  1. Once a transaction is finalized there is no way for it to be reversed to get it back
  2. Strangers can now transact with strangers and don’t have to rely on trust
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#5297
  1. What do we mean when we say that blockchain has transaction finality/immutability?

It means once a transaction is confirmed on the blockchain it cannot be undone. it is permanently recorded.

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

With immutable transactions, there is no need to check to see if a transaction has been altered or rebounded or anything that was not done in the initial transaction. This eliminates the need to trust.

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