Homework on Finality - Questions

Blockchain and Bitcoin 101
#5438

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    A transaction that has gone through is permanent and cannot be reversed

  2. How does this lead to the trustless environment that blockchain creates?
    Money cannot be taken back by means that exist inside or outside of the protocol

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#5439

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

This means that, when a transaction is completed on the blockchain, there is not way to cancel or delete that transaction, nor is there a way to send that transaction back to the place where it came from. After a transaction is done and confirmed, it becomes a permanent part of the blockchain records. If crypto is accidentally sent to the wrong wallet, there is the possibility of sending the same amount of crypto to the wallet where the wrong transaction came from. However, this would be an entirely new transaction on the blockchain.

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

Finality/immutability can increase trustless qualities of blockchains by preventing users from canceling or deleting transactions, for example to hide transactions, or to cheat by getting back crypto for goods or services which were received. Finality and immutability are produced by computer mining systems that use electricity to add transactions to the database. These computer mining systems use protocols which can be mathematically verified. They also use electricity for this process, in a manner which makes changing past transactions physically impossible. This prevents the deleting of past transactions, and provides permanent records in the database. The reliability of the math and physics of blockchain technology makes it easier to trust blockchain systems, decreasing or eliminating the need to trust individual persons or organizations that might make false records, by error or intentionally.

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#5440

1.There is no way to reverse a transaction once made, allowing further removal of trust.
2.We can conduct business with strangers by trusting the network which relies on math and protocols.

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#5441

  1. Finality on a blockchain means that when a transaction has happened it is on a blockchain forever. There is physically no way to remove or reverse a transaction.

  2. Both parties trust the protocol as they can verify mathematically that all transactions are final on the blockchain. This creates a trustless environment especially useful to businesses as they are able to transact with strangers with no ability for a stranger to do chargeback fraud.

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#5442
  1. What do we mean when we say that blockchain has transaction finality/immutability?

Once a transaction is confirmed and recorded in the ledger, it just cant be reversed. It would be in the ledger forever.

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

We dont need to trust the centralized authority to make a transaction. We can transact / do business even with strangers.

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#5443

  1. Thereā€™s no reverse way, when a transaction is accepted, is accepted forever.

  2. Because is the network who provides the trust, you donā€™t need to trust in anyone

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#5444
  1. Once a transaction has occurred, it cannot be reversed or amended retrospectively
  2. If information/transactions cannot be changed or corrupted, all information can be verified and authenticated, removing the need to trust content and source
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#5445

  1. It means that you cannot reverse anything that happens inside the blockchain. Everything is final and permanent, therefore immutable and final.

  2. You do not need to ā€œtrustā€ anything other than the protocol. One cannot reverse your transaction or reverse their transaction to you. The only thing that matters is using the right address.

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#5446

  1. The transaction is irreversible and will remain on the blockchain indefinitely.

  2. Strangers can transact with one another without worrying about the transaction getting reversed on the network.

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#5448
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction happens on the blockchain, this is not reversible. All transactions are final.
  2. How does this lead to the trustless environment that blockchain creates?
    One transaction happens, you do not need to trust. You trust the network. Buisiness can be done with people you do not know or trust, because trust is placed in the network. Verification happens mathematically.
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#5449

  1. Physics prevents individual network participants from altering the blockchainā€™s history.

  2. A trustless environment is only possible when every actor agrees no other actor has the ability to alter the blockchain.

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#5450
  1. Once a transaction has happened, it has been completed. After complete verification, it is non-reversable.
  2. Unlike with financial institutions, where transactions can be reversed (through fraud claims etc), a blockchain transaction cannot be reversed. There is no reliance on a third party as the algorithms and hashing mechanisms are the tools that work to do what the payerā€™s intent is. The payer intends to pay the payee, the transaction gets confirmed by the network several times and the payee receives their payment. Any fraud will be caught by the network.
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#5451

  1. it means that once a transaction is complete it cannot be reversed or change.

  2. because with finality/immutability its almost impossible to cheat or lie about any transaction as everything is easily verified and visible.

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#5452

1A) Once payment has been sent it can no longer be reversed. It canā€™t be refunded, disputed or chargeback.
2A) A trustless environment means the system creates the ā€œtrustā€, not the person or entity your conduction business with.

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#5453

  1. The transactions are finality because transactrions canĀ“t be reversed. Because of proof of work and the energy we put into the network for creating new blocks and hashes its extreme safe.

  2. Because everybody can do transaction with everybody and we dont have to be scared that were getting scammed like at paypal.

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#5454
  1. It means that the transaction is final, cannot be change or reverse.
  2. It leads to trustlesness because, you are trusting the network to process the transactions.
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#5455

  1. It cant be changed or reversed. You cant get your crypto back if you accidentaly sen your crypto different address

  2. Every transaction is on blockchain and you can easily verified if your transaction was received or not.

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#5456

1 - Once itā€™s recorded. Itā€™s final, thereā€™s no going back.

2 - You donā€™t need trust because you can verify everything mathematically!

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#5457

1)once a transaction is recorded on the blockchain it canā€™t be changed
2) everything can be verified so it removes the need for trust

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#5458
  1. What do we mean when we say that blockchain has transaction finality/immutability? It means that transactions are final and can be tracked.
  2. How does this lead to the trustless environment that blockchain creates?
    Strangers can do business with each other and transactions can be verified.
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