Homework on Finality - Questions

Blockchain and Bitcoin 101
#764

  1. It means that no previous records can be changed.

  2. We don’t need to trust the individuals anymore when doing business for instance as long as we have trust in the math and fundamentals of the blockchain technology.

2 Likes
#765

1: It cannot be reversed
2: By PoW/mining

1 Like
#766

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means the data can not be altered or changed.

  2. How does this lead to the trustless environment that blockchain creates?
    There is no longer a need for a third party to change or alter data and since the data cannot be changed it can be trusted once verified by the network

1 Like
#767
  1. All sales are final. No reversing.
  2. Makes it easy to make transactions with strangers without having to worry because it can be verified and can’t be cheated.
1 Like
#768
  1. That the data becomes immutable/not changeable and therefore is finite.
  2. Beacuse you essentailly create a system where the clearing house is imbeded into the product itself.
1 Like
#769

  1. Once a transaction has been made it will be on the blockchain forever. Removing trust.

  2. This prevents scams and charge backs from happening.

1 Like
#770

When a transaction takes place it cannot be removed. It cannot be canceled or contested by the sender. If you make a mistake and send the wrong amount or send to wrong address that is your mistake and you have to accept it. There can be no charge-backs like with credit card or bank payments.

The miners collectively verify the transactions that are sent by the individuals not a centralized entity

1 Like
#771
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transactions on blockchain are final meaning they cannot be reversed, manipulated or charged back once created.
  2. How does this lead to the trustless environment that blockchain creates?
    You dont need a trusted system because blockchain verifies the transactions. You can rest assure you can transact with strangers because no one person can reverse or manipulate a transaction.
1 Like
#772

[quote=“ivan, post:1, topic:8424, full:true”]
Homework on Finality - Questions

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

    It means the transaction happened and there are no do-overs. You cannot take it back

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

    Its impossible to reverse so less scams which will let you deal with strangers because there is no trust involved

1 Like
#773

once a transaction is confirmed, there’s no way to reverse it.

With Finality, we can trust that a confirmed transaction is legitimate.

1 Like
#774

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

  • It means once a transaction is recorded on the blockchain and confirmed, it is marked as completed (finalised) and cannot be modified (immutable)

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

  • Providing a finality/immutability property to the transactions in the blockchain allows a ‘safe’ exchange between unknown parties in the network
  • Unknown parties know “trust” is not a prerequisite to interact in the network with other users
  • This creates a “trustless environment” where multiple users can interact ‘safely’
1 Like
#775
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been posted, that’s it. It is there forever. It cannot be altered.
  2. How does this lead to the trustless environment that blockchain creates?
    Because immutable transactions are baked into the way the network works, trust issues relating to alterations or deletions are removed.
1 Like
#776

  1. it means, the transaction cant be chaged or altered. You would basically have to make another transaction.

  2. because theres no room for shady dealings, anyone who uses blockchain has no choice but to except the verification process it produces. ’ set in stone’

1 Like
#777

Transaction finality on an open, public blockchain which uses an appropriate consensus protocol, like POW, means that a transaction is permanently recorded as it is. It cannot be altered, reversed or copied. It is quite literally immutable.

This immutability means that you know, without a doubt that the transaction, whatever it is, has taken place, has been executed, and this can be verified by reference to the immutable record that is the blockchain. In conventional accounting/business, there is always the risk that you won’t get your mney because an agent or entity could reverse or alter the record and accuse you of not making payment. You have to trust entities you transact with in a coventional business operation. On an open blockchain, there is no need for trust, you can verify, instantaneously and directly. Hence the term ‘truslessness’

1 Like
#778

  1. Once an event takes place on a blockchain (such as a transaction) it is irreversible (in other words it is permanent). This is achieved through mining a block and the proof of work algorithm (in the case of bitcoin). Once the network has accepted the block through reaching consensus the event takes place and is immutable eg. final. The reason it cannot be edited later is due to the hash of the block (which represents all of the information/values of the block) cannot be edited later. Each block’s hash is affected by all previous blocks’ hash and so to chain block 20 you need to change blocks 1-19.

  2. This leads to a trustless enviroment because if an event on a blockchain cannot be changed (such as a token being sent to an individual or company) then there is no way for the data to be manipulated preventing corruption/fraud/manipulation. Therefore users of the network do not need to trust the entities they are dealing with because the network will validate transactions and exchanges between the users. You could say that users trust the network but the exchanges between individuals can be regarded as trustless.

The network eliminates the need for 3rd party intermediaries. In the case of financial transactions usually a 3rd party such as a bank would approve and validate transactions. and in the event of a scam offer a chargeback service if goods or products are delivered as agreed. It also requires the seller to trust the purchaser not to request a chargeback fraudulently. By making transactions immutable businesses no long need to trust the purchaser to act honestly. In the case of a service being provided it is a bit more complicated as a smart contract will be deployed meaning that once funds are recieved a self executing contract will release the value (such as a login to a blockchain based game) to the buyer. Because the provision of the product is final, there is no way for the business to take back the product or service from the purchaser after payment.

1 Like
#779

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    When a transaction has been verified through the consensus protocol it is not possible to reverse the transaction. Rendering it immutable.

  2. How does this lead to the trustless environment that blockchain creates?
    In a usual business you have to trust other entities in another business, which creates some risk. By using a public ledger/blockchain it removing the possibility to make changes in a transaction by other entities. Allowing for real time consensus transactions, eliminating the need for trust.

1 Like
#780
  1. What do we mean when we say that blockchain has transaction finality/immutability? It means once a transaction has been produced on the blockchain it cannot be reversed or changed and will remain on the blockchain forever.
  2. How does this lead to the trustless environment that blockchain creates? It enables you to do business with total strangers and allows you to have the comfortability in trusting a system thats can be verified mathematically. The money cant be taken back and there aren’t any chargebacks, so once the transactions are confirmed its final and lives on the blockchain forever.
1 Like
#781

  1. Finality/Immutability means that you can’t go back and change data once it has been confirmed by the nodes.

  2. If it is true that data is 100% secure on blockchains you can take away the need for trust.

1 Like
#782

What do we mean when we say that blockchain has transaction finality/immutability?
Finality in this case means that the transaction cannot be reversed. Once a consensus is agreed upon, it is stored on the blockchain forever. It cannot be edited or removed.

How does this lead to the trustless environment that blockchain creates?
All transaction are verified, so trust is not needed. This removes the need to trust a stranger, as you have a means to verify without them.

1 Like
#783

1. What do we mean when we say that blockchain has transaction finality/immutability?
Blockchain has finality/immutability because of the network who is verifying, once a transaction has happened it is there forever.

2. How does this lead to the trustless environment that blockchain creates?
Blockchain creates a trustless environment by not allowing scams resulting from chargebacks, data can be independently verified.

1 Like