Homework on Finality - Questions

Blockchain and Bitcoin 101
#945

  1. Transactions can’t be canceled and the blockchain is cryptographically secured.

  2. When transactions are final, you don’t need to trust the parties taking part in the transaction.

#946
  1. Blockchain has transaction finality/immutability meaning once a transaction is complete it cannot be undone.
  2. This leads to the trustless environment that blockchain creates by design. The physical nature of the blockchain can only be added to and not taken away from. This protocol allows for trustlessness in transactions between two entities because the trust is in the math and protocol that can be verified by all.
#947

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    All transactions are irreversible.
  2. How does this lead to the trustless environment that blockchain creates?
    We can trust the network protocol and allow us to transact with strangers globally.
#948

What do we mean when we say that blockchain has transaction finality/immutability?
Blockchain systems have finality and immutability because once a transaction is recorded in cannot be changed after a very short period of time in most cases. Finality being a measurement of the time it takes to obtain a high level of confidence that the transaction recorded in the blockchain system has become irreversible. The longer it takes the higher the chance that the transaction will be orphaned.

How does this lead to the trustless environment that blockchain creates?
Finality enables a trustless environment within blockchain systems by structuring validation to occur and be recorded only when conditions/terms are met. If conditions/terms are not met then transaction does not occur or get validated and recorded. Fantastic feature for a lot of reasons.

#949
  • A transaction on the blockchain cannot be updated. Transaction records can only be added or viewed without the option of updating or deleting these. This is why these transactions are deemed to have finality and immutability
  • The environment does not require trust to function as transaction record immutability is an intrinsic quality of the blockchain network, which allows anyone to easily verify information on the network.
#950
  1. What do we mean when we say that blockchain has transaction finality/immutability?

When a transaction is sent to the bitcoin blockchain, it cannot be backtracked, it is then stored within a block that is subsequently mined with PoW. Only a 51% attack could backtrack transactions, the data sent ot the blockchain is hence immutable.

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

The requirement of trust is disabled by PoW consensus algorithm, in order for an uxto to be output one has to be input, all of this real-time “audited” by the network nodes sharing and validating the same the data.
Worldwide p2p transactionality is then enabled by removing the requirement of trust.

#951

When a transaction is made it becomes immutable and irreversible.
Mathematics through mining verify transactions.

#952
  1. The transaction cannot be changed once completed. It solves the charge-back problem in current financial transactions.
  2. In Blockchain transactions, people don’t need to rely on trust from the other party. They need only to rely on trust in the network using math protocols.
#953
  1. It means that bitcoins transactions are irreversible because the miners add the transaction to block through POW, and it is practically impossible to reverse the transactions.
  2. Because these days in current financial systems, many issues are received for charge backs. Block chain avoids that and you do not need to trust your customer if he is purchasing any goods from you. He/she cannot charge it back.
#954
  1. transactions cannot be reversed
  2. it’s only one component but it means merchants don’t have to trust consumers not to get their bank to perform a chargeback
#955

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    The transaction is final and can’t be reversed, it cannot be changed which takes away opportunity for fraud.

  2. How does this lead to the trustless environment that blockchain creates?
    You can do business with anyone because you trust the network that uses the protocols to keep the information safe.

#956
  1. What do we mean when we say that blockchain has transaction finality/immutability? Once a transaction is entered onto the block chain it can not be removed or changed in any way.
  2. How does this lead to the trustless environment that blockchain creates? Due to the transaction being permanently registered on the block chain this can not be recalled or reversed by anyone, trust factor removed.
#957
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction is added to the chain aand confirmed it cannot be changed or removed.
  2. How does this lead to the trustless environment that blockchain creates?
    Its accepted by a network of machines and therefore network participants need not trust another entity
#958
  1. What do we mean when we say that blockchain has transaction finality/immutability?

This means once a transaction has been made that stays on the blockchain forever and can’t be moved or deleted from there.

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

This leads to trustless environment because once the transaction is done can be verified in real time and can not be reversed once it’s done so in this way business can be done with unknown parties , all you need to know is to trust the system which is a protocol based on mathematics which is highly secured.

#959

  1. If once transaction has happen, there is no way to get it back. We cant reverse it.

  2. We dont trust blindly - we trust to mathematic. No way to scam or get scammed.

#960

  1. Transactions can’t be modified after the transfer has been confirmed

  2. You can make business with anyone and you dont have to trust him

#962
  • What do we mean when we say that blockchain has transaction finality/immutability?
    -Transactions cannot be reversed, they are set in stone.
  • How does this lead to the trustless environment that blockchain creates?
    -Because things are final and verifiable, I don’t have to trust someone to not take his money back.
#963

1 We mean that once a transaction is confirmed on the blockchain, cannot be reverced/cancelled, and will be there forever.

2 No worries that someone may reverse a transaction of a payment or a term of a deal, after services/products have been rendered. Strangers can do business without having to trust the other party because the network provides the consensus. Nobody needs trust anymore.

#964
  1. It is not possible to reverse any transactions or make a chargeback.
  2. It creates trustless environment because you don’t have to trust anybody they made a transaction or won’t make a chargeback. Once it is done, it stays that way forever thanks to mining and proof of work.
#965

  1. When a transaction is made using Blockchain it is final. It cannot be reversed or cancelled and this is called finality.

  2. Because the transaction cannot be reversed this leads to a trustless environment in which, you as the seller, know that you can do business with a complete stranger, knowing the Blockchain will have proof of sake and that the buyer cannot say they didn’t receive there goods.