Homework on Finality - Questions

Blockchain and Bitcoin 101
#522
  1. When we say that blockchain has transaction finality/immutability we mean that the transactions is final. It cannot be reversed.
  2. It leads to the trustless environment that blockchain creates because once the transaction has been accepted by a block it is forever. the funds cannot be reversed. Unlike credit cards or checks etc. where you must trust that individuals do not phone bank or the credit car co. and reverse the funds.
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#523

  1. The conterparty can not reverse a transaction. It is like set in stone

  2. Once a transaction is veryfied it will stay like this for ever.

#524

!. Finality in a blockchain means that once a party sends the unit of value, that party cannot reverse at will. To reverse the transaction, the receiver would have to agree to and release the funds themselves, without the interference/use of a middleman.

  1. It theoretically leads to a trustless environment, because the receiver of funds does not have to trust the buyer. Of course, the buyer still has to beware of who they are sending the funds, and that they will follow through with the transaction agreement. So, still not a perfect system…
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#525
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means that once a transaction is made it is final and it can not be removed. This removes the trust that is needed when doing transactions with a stranger.
  2. How does this lead to the trustless environment that blockchain creates?
    This leads to a trustless environment because you can’t tamper with the transactions it is final.
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#526
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once transaction is approved and finalized, it can not be reversed. Finality is one way ticket there is no way back.
  2. How does this lead to the trustless environment that blockchain creates?
    There is no way for cheating. Only protocol is applied which no one can mess with.
2 Likes
#527
  1. When a transaction is confirmed, you can’t reverse it. It is final.
  2. Strangers can trust each other because a transaction will be confirmed by the network and it is irreversible.
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#528
  1. When a transaction is made it is final. The transaction cannot be changed or revoked.
  2. In a world of the pesky ‘charge back’, finality is a big deal. It allows you to do business with strangers without having to trust another party, If they say they are going to send you money - you receive it. They cannot take it back. It’s a new era.
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#529

Here we also mean that we can do business with strangers without fear that the counterparty can cheat in some way.

#530

And if you made a mistake, or you need your money back, you can always refund through a new (immutable) transaction

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#531

Exactly, and if in some case, you want your money back (refund), you could do this with a new immutable transaction.

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#532
  1. finality means that no transaction in the network can be reversed or undone. It is unalterable.
  2. you can do businesses with whatever person without being forced to return back the transacted
    goods.
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#533

  1. It means that a transaction cannot be reversed once it has been confirmed, and then stays on the blockchain forever.

  2. Because double spending is not possible.

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#534

1 - Transactions and entries in the ledger in general can not be reversed. Charge backs are no longer possible.

2 - BC allows for users to do business with strangers, because everyone trusts in the principles of math and physics and doesn’t have to have trust in the other party of the transaction.

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#535

  1. Once a transaction has been completed there is no going back. Each party knows that this is the case and therefore it eliminates the requirement for trust. We are relying on math as our security.

  2. It protects both the consumer and business because each party knows that the transaction is finale. It is verified in the blockchain using mathematics

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#536
  1. You cannot get back or reverse a transaction
  2. You do not trust a person or an entity, it is based on consensus.
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#537
  1. It is a guarantee that transactions on the blockchain cannot be altered,reversed or cancelled after they are complete.

2 Because it utilises a proof of work consensus where users can interact with each other in a peer to peer format with complete trust in the system.

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#538

1- Once a transaction happens it can`t be undone Or reversed by any means.

2- The parties involved in the transaction don`t have to trust each other, they know that once a payment is sent the funds are there, there are no possibilities for scams.

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#539

  1. There is no way to bring the money back if it was send. It is written on the blockchain nobody can go back and change.

  2. I can do business with strangers. I don,t have to trust them. I trust in mathematic.

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#540
  1. What do we mean when we say that blockchain has transaction finality/immutability? There is no way to change the data once it is committed to the blockchain.
  2. How does this lead to the trustless environment that blockchain creates? Because the Blockchain’s protocols make it physically impossible to go back and change data on a verified block once it has been validated and committed to the ledger of the blockchain. Since one can always trust that the data is valid and immutable once it has been validated and committed to an the blockchain’s ledger, one does not need to worry that the data, “payment” or block could be changed by anyone which allows entities to do business with each other without having to trust each other. This is because they know that the entity which they do business or transact with could never alter or change that which they have already submitted to each other through the Blockchain If that which they have submitted to each other has already been validated / committed to the blockchain.
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#541
  1. Concensus is reached and transaction is registered on the blockchain and cannot be reversed.
  2. It can be varified mathmatically. It is set in stone.
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