Homework on Finality - Questions

Blockchain and Bitcoin 101
#664

  1. Once a transaction has been made it is final, it cannot be reversed.

  2. It makes it possible to do transactions with strangers without having to trust them since the transactions cannot be reversed or altered.

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#665
  1. It refers to the fact that once a transaction has been performed, verified and validated, it is no longer possible to reverse it or change it.
  2. Since it is not possible to change or delete a validated and verified transaction, it allows members of the network to rest assured that once their activity has been controlled and accepted, it will never be questioned again. This makes it possible for people to rely on such technology for many different applications that involve certification and verifiability, leading to a trustless environment in which you donā€™t need to trust anybody as nobody can tamper with whatā€™s registered in the blockchain.
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#666
  1. What do we mean when we say that blockchain has transaction finality/immutability?

When a blockchain has transaction finality we mean:

  • Once a transaction has happened, it has happened, it is final
  • The transaction is on the block forever
  • The transaction cannot be reversed.
  1. How does this lead to the trustless environment that blockchain creates?

This leads to a trustless environment because all parties trust the network instead of having to trust each other. Transactions are permanent and cannot be reversed, therefore any disagreement on a transaction is a matter of public record, and can only resolved by agreeing on the previous transaction or creating a new transaction.

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#667

  1. It means that once a transaction takes place and is confirmed by the network the transaction cannot be changed or reversed. This is generally useful because we use this truth as reasoning that the network is secure, however if you have an application where you may want to return a payment or alter a payment then finality/immutability will be burdensome.

  2. This leads to a trustless environment because it allows us to buy and sell goods to strangers we donā€™t know or trust. We can do this because we know that once a transaction has been made it cannot be changed or reversed so we donā€™t need to worry about charge backs or any scam like that happening.

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#668
  1. When the transaction is on the blockchain it is final there is no way to reverse it is there forever. For any chance of a reversal one would need to convince the majority of the network that the proposed change is the truth.
  2. Once on the blockchain you do not need to worry about trusting any third party, or reversing any transactions
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#669

What do we mean when we say that blockchain has transaction finality/immutability?
Ones a transaction has happened it is on the blockchain and irreversible.

How does this lead to the trustless environment that blockchain creates?
Miners confirm transactions in blocks they have mined.This process is called Proof of Work and makes the transaction immutableā€¦

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#670
  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • It means that once a transaction has been made thereā€™s no way to reverse it nor cancel it. What went is gone. Once the transaction had been added to the blockchain itā€™ll be there always.
  1. How does this lead to the trustless environment that blockchain creates?
  • Everyone trusts the network so that they donā€™t have to trust each other, this would allow transactions between complete strangers without a worry in the world.
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#671

  1. Finality refers to the idea that once a transaction has been confirmed on the blockchain, it is irreversible.

  2. Finality creates a trustless system because individual transactions are confirmed by participants who are incentivized to be honest. Because the transactions are confirmed based on the laws of mathematics, individuals can transact with complete strangers without worry.

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#672
  • What do we mean when we say that blockchain has transaction finality/immutability?
    non reversible transaction once the payment is done.
  • How does this lead to the trustless environment that blockchain creates?
    trust network, protocol, math calculation, once transaction is done it cannot be reversible.
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#673

  1. Once a transaction has been verified mathematically by every node in the bitcoin network, it is then confirmed and added onto the blockchain public ledger. The transaction cannot be reversed or altered in any way.

  2. When companies who are doing business together need to make payments, it is more beneficial for either company to do this through blockchain technology as there is no way for either of them to scam each other and phone their banks for a chargeback once the transaction is made. Using blockchain technology, once companies make a transaction, it is public forever, there is no way to physically reverse or change it which creates a trustless environment. The companies do not feel the need to have to trust each other and rather can just trust in the mathematical protocol of the blockchain which works to verify transactions.

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#674
  1. Once it has written into the blockchain, itā€™s there forever.
  2. This means that there is no chargeback risk for cryptocurrencies.
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#675

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been committed to the block. The block cannot be revoked from the blockchain.

  2. How does this lead to the trustless environment that blockchain creates?
    Because the transactions on earth block can only be written but not altered or deleted. Once the Hash has been solved, this is verified by all other nodes on the network. This allows strangers to do transactions without the need to trust that the transaction has taken place.

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#676

  1. Transaction finality/immutability in blockchain means that once a transaction has happened it can not be revered on the network. It is final and cannot be undone once it has been confirmed.

  2. The finality/immutability leads to a trustless system because there in no central entity (like your bank) that you can call as a consumer to dispute a transaction. In other words, if you pay for something you cannot lie to your bank and say that you never made that purchase, which would lead to the reversal of the transaction and the supplier of the product that you bought losing out on their revenue.

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#677
  1. It means that once a transaction is done, it cannot be reverted.
  2. There is no need for trust. Based on mathematics and protocol, transactions are free and secure to be performed with complete strangers.
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#678
  1. Once a transaction has happened this cannot be reversed. It is final.
  2. All transactions are verified by mathematics thus I can transact with strangers.
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#679

This means that when you press the send button, you can no longer rethink and cancel your transaction. Its done
2.
This means that there is no third party in the middle who can manipulate your transaction.

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#680
  1. It means that once you put on a rock, there is no way back.
  2. You donā€™t have to be worried about the other person suddenly decides to call the bank and make a charge back, his only way would be to negotiate with you and only recieve a refund if you agree to it (as example)
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#681

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    We mean that once a transaction has been confirmed it cannot be undone and a record will remain on the blockchain forever, this record is final and cannot be altered or muted.

  2. How does this lead to the trust less environment that blockchain creates?
    This ensures a trust less environment because once you have received a payment it is yours, no one can undo it . This means we can do business with individuals from around the world that we do not know as the blockchain system is trustless.

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#682
  1. Once a transaction has been executed and verified by the blockchain there is no reversing it or deleting it from the ledger.
  2. This feature allows one to make transactions with strangers knowing that it canā€™t be refuted as it is recorded and searchable on the global ledger.
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#683

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    After a transaction has been made, it cannot be reversed. If for example you sent some bitcoin to an adsress you can never retrieve it.

  2. How does this lead to the trustless environment that blockchain creates?
    Since a transaction cannot be reversed, the merchant doensnā€™t have to trust the customer. If he has the money it cannot be taken away from him anymore.

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