Homework on Finality - Questions

Blockchain and Bitcoin 101
#5639
  1. Transactions cannot be reversed. Once they are written and accepted in the blockchain, they are there forever and can’t be reversed.
  2. We can mathematically verify all transactions and have proof of work that they exist. Everything is verifiable on the blockchain, and we don’t have to rely on any central person or company.
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#5640

Q1. What do we mean when we say that blockchain has transaction finality/immutability?

A1. The transactions are final. There is no way to reverse it once it is confirmed unlike what we have with the regular banks.

Q2. How does this lead to the trustless environment that blockchain creates.

A2. It completely eliminates the need for trust, because what u see is what you get. You dont have to worry if you can trust the network or not.

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#5641

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

    It means that transactions made on the blockchain cannot be reverted.

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

    It removes the counterparty risk and reliance on trust. It allows people to transact with others without knowing their identity. Unlike traditional transactions, nothing can be revoked on the blockchain any transaction will be final and immutable.

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#5642

Finality:

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been validated and added to the blockchain, it can not be modified or removed anymore. Also the person who sent the crypto can not call anyone to revert the transfert
  2. How does this lead to the trustless environment that blockchain creates?
    Both sides are sure the transaction will happen. You trust the network, not the people or an institution
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#5643
  1. What do we mean when we say that blockchain has transaction finality/immutability?

Finality means there is no way to reverse the transaction after all of the conformations are complete and the transaction will permanently be recorded on the ledger.

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

This leads to a trustless environment because users will be confident that they cant be scammed in the way that merchants are scammed today by customers gaming the chargeback policies that finical institutions use.

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#5644

What do we mean when we say that blockchain has transaction finality / immutability?
Transactions made on the blockchain are final and therefore cannot be reversed.

How does this lead to the trustless environment that blockchain creates?
Because the transactions cannot be manipulated / reversed after completion, there is no need to subjectively trust anything.

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#5645
  1. Transactions on a blockchain cannot be reversed - unlike say, credit card transactions. They are final.
  2. Finality means that it doesn’t really matter who is on the other side of the transaction. Therefore, trustlessness.
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#5646

  1. What does it mean that a blockchain transaction has finality/immutability?

  2. Blockchain transactions are recorded on the ledger through mining, and are maintained by the whole network. It is impossible to erase or take back that transaction as it is recorded by everyone and cannot be changed (immutable)

  3. How does this lead to a trustless environment?

  4. Knowing that all transactions are final prevent financial manipulation or scams. If someone is expecting to receive money, once they have it, they cannot have that money withdrawn from their account or stolen

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#5647

  1. When we say that blockchain has transaction finality/immutability we are saying every transaction is final. If you send some money there is no way for you to get it back.

  2. This leads to the trustless environment that blockchain creates by making it so you do not need to trust who you are sending it too but you need to only trust the network and the protocol.

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#5648
  1. What do we mean when we say that blockchain has transaction finality/immutability?

The transaction can not be reversed. It’s final and can’t be changed.
2. How does this lead to the trustless environment that blockchain creates?

You trust the math of the blockchain that the transaction will be completed per the terms you agreed to. You don’t have to trust another person or 3rd party to hold up their end of the bargain.

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#5649

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction is registered on the blockchain, it is final. It and cannot be removed or reversed.

  2. How does this lead to the trustless environment that blockchain creates?
    The blockchain creates a trustless system. It removes the element of trust required between parties, instead trust is placed in systems and protocols. This is possible because of finality and the transparent nature of the blockchain.

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#5650
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    That the transaction if final and can be to anyone.
  2. How does this lead to the trustless environment that blockchain creates?
    That anyone can do business with anyone or any business even if they don’t know them. Because we have trust in the blockchain.
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#5651

1/Once a transaction has been made it can never be reversed or changed.

2/ Removes trust as everyone knows that once the transaction is done that is it

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#5652

Homework – Finality

What do we mean when we say that blockchain has transaction finality/immutability?
If a transaction has been approved it can not be turned back. Meaning when it’s added in the blockchain it is not possible to turn it around.

How does this lead to the trustless environment that blockchain creates?
Because a transaction is final, a costumer for instance can not say that the company they paid has scammed them to turn it around. Also everyone can look into this transaction so you can not lie about not getting it.

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#5653

  1. Once a transaction has taken place on the blockchain that’s it, there is no way to reverse said transaction or change it in any way.

  2. This leads to a trustless environment, because I do not need to know you to do business with you, I can do business with total strangers because I only need to trust the blockchain which is governed by math and physics, therefore trust is removed.

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#5654

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    => Transactions cannot be reversed/rolled back.

  2. How does this lead to the trustless environment that blockchain creates?
    => Strangers cannot pay (or make a transaction) and then cancel the payment (transaction) afterwards.

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#5655
  1. irreversible - once done its done
  2. you can trace and see if the payment has happened.
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#5656

  1. Finality/Immutability in blockchain means that once a transaction is made it gets embedded and can not be overturned.

  2. We can do business with strangers, irreversible transactions remove trust.

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#5657

  1. It means a transaction cannot be reversed. It also means that the data is recorded in the ledger which also can’t be removed.

  2. Since transactions can be verified then there’s no space for fraud or scamming on the side of the consumer or seller.

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#5658

  1. It means that once a transaction occurs it can’t be reversed.

  2. This prevents the problem of dishonesty in traditional transactions (calling a bank to report fraud even if no fraud happened), and also lets you trust a network instead of a person.

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