Homework on Finality - Questions

Blockchain and Bitcoin 101
#5519
  1. Once the transaction is done and the block has been completed it cannot be reversed, altered or changed.
  2. The reliability is placed in the hands of an impartial 3rd party, all transactions are irreversible, undeniable, public and verifiable.
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#5520

  1. Immutability in computer science is a concept applied to data types and variables that can’t be mutated (changed) after being created, the same is true for blocks in the blockchain. Once a block is created and a consensus is reached it can’t be edited, the only way to change it is to remine (redefine) it, which means remining every block after it, a mathematical impossibility for Bitcoin. This leads to the finality of each transaction stored on the blockchain.

  2. The trustless environment is one where trust is not needed because all the trust is placed in the blockchain which is mathematically shown as something worthy of trust. The fact that transactions can’t be changed means sellers don’t need to trust the buyers and worry about transactions being reversed by banks. It also verifies each transaction that happens, meaning the validity and existence of any payment can’t be disputed.

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#5521

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

Finality: Once a transaction on the blockchain has been made, it’s final and irreversable.
Basically once you’ve made that transaction that’s it, no refunds!

Immutability: It can’t be modified or altered.

If you by any chance make a btc transaction to an incorrect crypto wallet address:
Then you will have to hope and pray for that the receiver’s good will to send it back :grinning:

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

Once a transaction e.g a payment has been made it simply can’t be reversed, changed, cancelled, duplicated or refunded.
This in turn contributes to trust between e.g strangers, because there won’t be those common centralized scam problems such as chargebacks.

There is no need here for a 3rd party’s trust. “Never trust, always verify”

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#5522
  1. What do we mean when we say that blockchain has transaction finality/immutability?

It means that the transaction is irreversibly, tamper-proof stored in the Blockchain database. This also means that there is no middleman, bank or central entity that needs to or can confirm a transaction.

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

By having the miners do the calculations for the proof of work and storing each transaction in a tamper-proof way, there is no need for additional trust.

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#5523

  1. An entry in the blockchain ledger cannot be undone or reversed.

  2. Because actions to defraud one’s counterpart are made impossible, the dependence upon trust in the hope that payment will be made is no longer a factor.

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#5524

This means that it Cannot physically be changed ever.
This essentially prevents charge back fraud.

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#5525

  1. Every transaction ever made on a blockchain is permanent.

  2. Fraud is impossible and you can be sure that every transaction is legit

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#5526

  1. Finality means that a transaction cannot be undone. This has advantages and disadvantages. The advantage is that once you receive money, nobody can take it back from you. The disadvantage is that if you send money by mistake for example to the wrong address or if you regret your decision later on, you cannot call a central authority to undo that transaction. Credit Card payments for example provide some assurances to the Credit Card owners because if someone who is not allowed to use the card steals your card details and buys something in the internet, you can call your bank and they will give your money back and the criminal will be chased. On the other hand, if you buy a product legitimately and the seller sends it to you or starts producing the item for you, you may still be able to call the bank and undo the operation and get away with that with a financial loss potentially happening in the seller side. In some cases this may not be acceptable for the seller but the buyer can still get away with that. Finality is a double-edged sword. Blockchain is great for some use cases which could not be achieved before but it also means that in some other use cases you will be better served with a traditional credit card or cash. It is important to understand that blockchain is no silver bullet and for the time being there is still a use case for traditional electronic and cash payments.

  2. The trustless environment emerges from the fact that no party (buyer or seller) needs to trust that all other members in the system nor a third party central administrator will behave under any assumed fashion. You do not need to trust any person, you just know that the protocol will behave in a certain way as determined by the mathematics and the algorithms underpinning the blockchain.

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#5527
  1. It means that the transaction cannot be reversed, it is a done deal. No backsies!
  2. There is no need to check on the veracity of the transaction, since it has already gone through the nodes, which came to a consesus.
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#5528
  1. When we say blockchain has transaction finality we mean that once a transaction is confirmed there is no reversing the transaction or ever chaging the ledger.
  2. This leads to the trustless environment that bitcoin creates by not allowing anyone to try to reverse a transaction and take back there money.
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#5529

  1. Transaction finality on the blockchain means that each transaction that takes place is permanent and cannot be undone. Immutability means the information contained within the block cannot be changed or removed only added to.

  2. The finality of blockchain leads to a trustless environment as there are non-compromising rules set in place by the decentralized network. It is up to all parties to take responsibility As data cannot be reversed or changed.

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#5530
  1. You can’t revert transactions.
  2. Yo doesn’t do transactions with strangers which can be a scammer.
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#5531
  1. once the transaction is done there is no way to go back and revert it
  2. The fact that transactions are validated with math makes them impossible to alter, so there is no need to trust anyone, math guarantees for us
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#5532
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    When a transaction is sent and approved on the blockchain, it’s final, there is no going back. The transaction is writen on the blockchain forever
  2. How does this lead to the trustless environment that blockchain creates?
    The fact that when the transaction is done there is no going back make it impossible to take back a transaction. You don’t have to worry that the person that you making a transaction with gonna cancel the transaction or take the money back.
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#5533

  1. Once a transaction is complete its “final” there are no chargebacks or scams that can take place.

  2. Trusting the math and the system instead of trusting a individual or company.

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#5534

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Any transaction made on a blockchain network is final and cannot be erased, edited or reversed.

  2. How does this lead to the trustless environment that blockchain creates?
    Every transaction must reach consensus and only after will it be added to the blockchain ledger. Once on the blockchain the transaction is considered completely valid and cannot be manipulated.

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#5535

That every transaction on the blockchain is final. Can’t be deleted or edited.
It takes away the need for trust, because it is decentralised and therefore can’t be rolled back by anybody.

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#5536

  • That once a transaction is confirmed it’s done. It cannot be undone or changed. There’s no turning back in blockchain ecossystem.

  • It’s a huge guarantee to the players that really doesn’t know each other that something that has been done it’s guaranted till the end… it cannot be undone. By acting like this, the blockchain delivers more transparency but demands more control of the players

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#5537

  1. Blockchain has transaction finality by verifying the previous block before, as much needed to verify and approve a transaction/ a change in the blockchain.

  2. It leads in a Trustless environment by tightening and adding more security to anything and everything in the crypto system where verification is mandatory

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#5538

  1. It means that once a transaction happened in the network cannot be undone or reversed

  2. As the network is public and everyone can see the transaction and no one has the access to change the transaction

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