Homework on Finality - Questions

Blockchain and Bitcoin 101
#744

What do we mean when we say that blockchain has transaction finality/immutability?
Once a transaction has been verified it will be on the Blockchain forever. It cannot be deleted, duplicated or changed.

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

Blockchain eliminated the trust factor because you are dealing directly with a decentralized network. There is no need to have trust in a third party. Once a transaction is final it cannot be tampered with.

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#745

1: Once a transaction is entered onto the ledger, it can not be reversed or removed. It will be there forever.

2: This provides a trustless environment for those receiving payments as they do not need to worry about chargebacks or reversals. It also allows for a permanent record of payments sent for those who have sent payments.

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#746
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It is no way to get it back, it will be on the blockchain forever.
  2. How does this lead to the trustless environment that blockchain creates?
    There is no need to trust anyone, we trust the math behind the blockchain.
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#747
  1. What do we mean when we say that blockchain has transaction finality/immutability?

When we refer to the concepts of finality and immutability, one must recall that blockchain was designed to be written to, but never changed. This feature means any approved transaction becomes a part of the whole - final and immutable. Once part of the whole, the redundancy of the database on each system of the network will assure the completeness and correctness of the whole every clock cycle.

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

Bearing the concepts of finality and immutability in mind, one can argue that the blockchain creates a ā€œtrustlessā€ system. Since no one can every alter or delete an approved transaction inside the blockchain, there is potentially zero risk of being defrauded. This brings a confidence level so high that one can easily conduct business with complete strangers all over the world at any time of the day or night!

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#748
  1. Transactions canā€™t be changed or reversed.
  2. We can do business with strangers, because we know they canā€™t cheat us.
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#749

  1. Blockchain transaction finality/immutability means that the transactions on the block cannot be changed after they have been created, thus making the data permanent.

  2. This leads to the trustless environment in that because the block can not be altered we do not have to trust anyone since they can not change the transactions even if they wanted to.

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#750

1.Finality is used to measure the amount of time one has to wait for a reasonable guarantee that crypto transactions executed on the blockchain will not be reversed or changed.So, when it comes to blockchain technology, transactions are termed immutable due to its finality nature.

2.Transactions executed on the blockchain will not be reversed or changed.

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#751
  1. What do we mean when we say that blockchain has transaction finality/immutability?

Transaction finality/immutability means the blockchain can not de changed, confirmed transactions can not be undone. It is final.

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

Immutability leads to the trustless environment that blockchain creates because it places both parties involved (buyer and seller) on the same playing field as both parties can be certain the other can not take a spet back once the transaction has gone through.

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#752
  1. Information/data on a blockchain cannot be changed once the block has been verified by the network.
  2. This creates a trustless environment as the transaction and the settlement are one action, no third party needs to be trusted to verify information, only the network itself.
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#753
  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • Once a transaction/deal has been recorded in blockchain ledger it cannot be changed since it is on all the computers/nodes in the system.
  1. How does this lead to the trustless environment that blockchain creates?
    With finality/immutability I know that all the data in the network is genuine and hence I can do transactions with strangers.
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#754

But in case a charge back or refund is needed, you can do this with another immutable transaction. Wich will provide good transparency on the blockchain that you got refunded

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#755

Hey Fabrice, thanks for adding this novel insight to this advantage.

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#756

  1. That means when a transaction is confirmed there is no physical way to reverse it! its done, its forever!

  2. This enviroment is created because you can be sure that transactions cant be reversed , hacked or bank informations manipulated or misused ! So you can do bussiness with anyone anytime !

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#757

  1. This means that once the transaction is recorded to the blockchain it cannot be reversed. Once you pay someone you cannot perform a stop payment as with traditional payments systems.

  2. This leads to a trustless environment because now allows you to do business with strangers and the only trust that is necessary is in the mathematics that allow consensus through mining to commence.

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#758

  1. The transaction cannot be reversed! You can verify your transaction on the ledger. Therefore it is immutable!

  2. You are able to transact with strangers and you do not have to trust them because you trust the network and the math.

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#759

  1. Finality means irreversible, immutable, a block in the chain.

  2. A system that upholds itā€™s rules through protocols and math takes away human bias making it trust less.

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#760
  1. Nobody can change the content of the block once the block is written
  2. Since no one can change the content of the block, anyone can examine the records to verify the content.
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#761

  1. Finality means transactions are irreversible.

  2. This creates a trust less environment because you can check mathematically that a transaction has been sent and it can be publicly viewed.

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#762
  1. transaction canā€™t be changed or removed.once sent is saved in blockchain and is not reversable.
    2.blockchain does not need third parties to confirm transaction wich lead to trustless environment
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#763

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transaction is final and cannot be deleted or reversed.

  2. How does this lead to the trustless environment that blockchain creates?
    From a centralized / decentralized standpoint, i understand this. However lets talk from a practical standpoint.

The only issue I have is once the crpyto has been sent, it can never be unsent, therefore, the buyer of a transaction is taking 100% of the risk because if the seller decides not to ship, not to perform services or not deliver what you paid for, there is literally nothing you can do. I say this with true concern because I got jacked for 75 eth. I was buying a service, an expensive service, that never got fulfilled. I have two choices, take the loss, or spend more money on a lawsuit, however the seller was over seas, so that makes it even harder. When the buyer has no recourse, and the seller has no risk, this to me does not make sense in terms using crypto as a currency.

if anyone has any suggestions or response to this, would love to hear.

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