Homework on Finality - Questions

Blockchain and Bitcoin 101
#5719

Transactions on the blockchain are final and immutable. They cannot be ‘rolled back’ or ‘undone’ - it’s a forever thing.

This kind of finality is instrumental in creating the ‘trustless’ environment of blockchain. Finality builds confidence and certainty into the network by eliminating counter-party risk, which is at the heart of what ‘trustlessness’ means. Once confirmed, Finality ensures that the terms of a transaction will not be altered. It further ensures that each party will perform the specific actions required of them in order to complete the transaction. Parties to transactions are now free to no longer ‘Trust’ each other :slight_smile:

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#5720
  1. What do we mean when we say that blockchain has transaction finality/immutability?

Answer: once transaction is added to the blockchain, it is final, meaning that it can’t be reversed, removed, or changed.

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

Answer: because of the finality feature, blockchain creates a trustless environment where complete strangers can conduct business with one another knowing that their assets are safe within the network.

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#5721

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    A transaction can not be reversed once settled on the blockchain.

  2. How does this lead to the trustless environment that blockchain creates?
    Trust is removed from people and given to the network by acknowledging the rules by wich the system works. A chargeback for example is impossible. Everyone agrees to this rule. No surprises can be expected.

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#5722

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    That once a transaction is on the blockchain, it cannot be removed.

  2. How does this lead to the trustless environment that blockchain creates?
    Because one does not have to worry about trusting the payer to not reverse a charge.

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#5723

1.) No transaction can EVER be reversed. If a transaction has happened it is forever in the blockchain.

2.) This leads to a trustless environment because you don’t have to worry about being scammed or cheated. No one can reverse your transactions and take your money.

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#5724
  1. Transaction finality/immutability in blockchains means that all transactions in a block, once written and confirmed, proverbially are “edged in stone”. Final transactions cannot be changed retrospectively, neither by network users nor by network operators.
  2. Finality/immutability is a cornerstone of digital provenance, if this happens on an transparent open ledger so that all blockchain transactions can be traced back to the very first block. This creates the trustless environment since everyone is in a position to verify all network activity. So I can rest assured that no one will modify or contest my transactions (aka business) made with another party.
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#5725

  1. It means once the block has been added and confirmed by a few other nodes, then there is no way to change it thereafter.

  2. Because i can verify myself if a transaction was done or not, i do not have to trust some person or institutes word anymore.

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#5726

1.everyone can verify every transaction. 2.basically once you send a transaction you can’t get it back.

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#5727

Homework on Finality:

  1. The transaction finality/immutability within Blockchain refers to the “all sales are final” method. Which is when a transaction occurs, there is no way to take it back, receive a refund, or remove it from the Blockchain.

  2. Blockchain’s finality eliminates the trust between consumers and producers since each transaction is ingrained and finalized. Meaning, the trust needed for fraud to occur will never be possible or present.

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#5728

Answer

  1. It means that when you make a decision(transaction) on a blockchain, you can’t take it back. It will be final.

  2. Like Satoshi says at the very beginning of the bitcoin whitepaper; “Bitcoin: A Peer-to-Peer Electronic Cash”, as a peer, you must trust only yourself.

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#5729
  1. Once a transaction is done, it cannot be reversed.
  2. The mechanism does not need trust between parties because transactions are verified mathematically by multiple nodes and is immutable.
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#5730

  1. When a Tx has been approved and verified there is no possibility to reverse the Tx.

  2. No one can change or reverse a transaction. When you know the rules and act on it, you can be certain that your actions (Tx) are secure without being dependent on a third party.

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#5731

  1. Once a transaction has been added, it cannot be reversed.

  2. Two business parties (especially in the case of strangers) don’t need to trust each other w.r.t. their business transaction as they can trust the blockchain protocol in executing their transaction and doing so correctly.

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#5732

  1. There is no possibility to reverse any transaction. Once is been confirmed, as miner have spent electricity on it, to make it happen and POW, is done. No way to go back.

  2. As transactions can not be removed, lead us to a 100% trustless network.

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#5733
  1. What do we mean when we say that blockchain has transaction finality/immutability? once a transaction is made there is no going back.
  2. How does this lead to the trustless environment that blockchain creates?
    You can transfer money to anyone and you don’t have to trust the receiver, you trust the network.
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#5734
  1. No one can alter the data or revert the submitted transaction.
  2. The trust will be the last thing to worry when receiving payments from strangers. Basically, if they provide the right token/coin as payment to your wallet, you are good to go. They cannot revert what they’ve done or call “the bank” to state that he defrauded by someone.
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#5735

  1. When a blockchain has transaction finality and immutability we are saying that once a transaction has happened it cannot be undone. There are no such thing as a transaction reversal.

  2. Finality/immutability leads to a trustless environment in blockchain because you are assured that transactions are final and not falsified since you trust the blockchain network and its mathematical behavior. You are not reliant on any third party to record or edit a transaction and as a result you don’t have to trust any third party.

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#5736

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    A: It can not be reversed once the transaction has been completed. Once the transaction is added to the block, there is physically no way to undo the transaction.
  2. How does this lead to the trustless environment that blockchain creates?
    A: It means you do not need to know or trust the person or entity you can interacting with. You trust the system and the network.
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#5737
  1. When we say that blockchain has transaction finality/immutability, we mean that once a transaction has passed through and been written on the ledger, it cannot be altered or tampered with.
  2. This leads to a trustless environment because blockchain ensures what information or transactions occurred and that the ledger in which they exist, cannot be altered any time in the future.
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#5738

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transactions are not reversible, if you send the transaction to the wrong wallet address then you can’t get it back, so it means no chargeback. Immutability allows a successful transaction to remain unchanged or unaltered.

  2. How does this lead to the trustless environment that blockchain creates?
    Blockchain is based on math and decentralized, the transaction is final and cannot be changed. We can do transactions with strangers, there is no need to trust them. And also that’s why it’s safe.

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