Homework on Finality - Questions

Blockchain and Bitcoin 101
#987

  1. Blockchain has transaction finality/immutability means?

    • Once a transaction has taken place on the blockchain it is impossible to reverse that transaction
    • That transaction can’t be altered in any way once it has taken place
    • The transaction will be forever recorded in a block on the blockchain

  2. Finality leads to a trustless environment in the following ways:

    • It removes the ability of customers to make fraudulent charge backs on the merchant
    • It protects the merchant from consumer fraud and puts the onus on the customer to be trustworthy
    • It allows strangers to do business with each other in a trustless system, by removing the need for the merchant to have to trust that the customer will actually pay without issuing a charge back
#988
  1. Transactions can’t be reversed.
  2. Because we don’t need a third party and transactions are final.
#989

  1. Finality in terms of blockchain simply means that once your transaction is confirmed there is absolutely no way to reverse it.

  2. Once you send bitcoin in return for a product or service you are not able to reverse the transaction and scam the person selling you the product or service.

#990

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • Lets say you told your neighbor that you would come over to help him or her move a couch. Well how do you know if this is so? Well do you help or not help that person, if so then yes the deed is final. If you send a transaction on the blockchain the deed it self is done. There isn’t a promissory proposition that may or may not lead to the transaction being finalized. Although I know a transaction must be confirmed first! Still when the deed is, or the couch is moved, it’s recorded and immutable - at least to my knowledge you can’t go back in time and un-move the couch. So too you can’t un-move a transaction from the blockchain. Again unless there is an evil AI controlling things behind the scenes and or quantum computing doesn’t break the current level of cryptography.
  1. How does this lead to the trustless environment that blockchain creates?
  • If you know a deed has been done then there is a high level of trust. Say I do business with you and 10 out of 10 times I always do what I say I’m going to do. On the 11th time do you think your level of trust will be high or low? To me it would be high and this is the sort of network that I want to be apart of! Say we compare how much you can trust a bank to not inflate your currencies value away, verse how much you can trust that bitcoin won’t inflate its value away. Which would you trust? Although bitcoin hasn’t been around very long it still, in my opinion, garners more trust than all the years of the banking establishment has been in existence.
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#991

  1. It means once a transaction has been sent and confirmed it is irreversible.

  2. It leads to a trustless environment because we can verify the transaction mathematically.

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#992

What we mean when we say that the blockchain has “transaction finality/immutability” is that transactions cannot be changed, reversed or deleted. They are permanent.

This leads to the trustless environment that blockchain creates by the fact that no party in the transaction can make fraudulent changes or reversals after the event. Because every transaction can be verified, there is no need for trust.

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#993

Right on Fabrice - thanks for clarifying - I miss worded that - transactions are final - not sales.

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#994

  1. Once a transaction has been made it can not be reversed or removed from the blockchain.

  2. It helps to remove trust as you can do business with strangers and your trust is placed in the mathematical protocol, essentially that means in mining and proof of work. If someone cant reverse a transaction it prevents them from scamming you or doing charge backs where they cancel the payment and have the money returned to their account.

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#995

  1. Once a transaction is confirmed it can not be changed.

  2. Participants can be ensured that nobody can tamper with the transaction. No trust is needed, because the system makes it impossible to cheat.

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#996

  1. A blockchain has no delete button, so if a transaction is confirmed it is done, thus it is immutable.

  2. When an agreement is made between two or more parties on the blockchain and verified under protocol it is immune to any third party interference.

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#997
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    We mean that the transactions on the blockchain cannot be modified = they are final.
  2. How does this lead to the trustless environment that blockchain creates?
    When the transactions on the blockchain are immutable - there is no need for a 3rd party to verify or confirm that the data there is true. It is verified by math, so (almost) no room for human error or malicious intent.
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#998

  1. It means that once a transaction has been verified and added to the Blockchain, it can never be undone and will be in the Blockchain forever.

  2. The replacement of Humans with Mathematics closes the door to potential fraud and scams, therefore removing the need to trust anyone.

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#999
  1. we mean that a transaction cannot be modified. Once done is done.
    2.There is no trace of trust as we even do not have to deal with it as blockchain is already trustless/
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#1000
  1. It means transactions can not be reversed or cancelled. They are permanent. Once the transaction is recorded it can not be deleted.
  2. This means you do not have to put blind faith in someone when doing business. The system ensures you will not be cheated. Blockchain verifies the transactions itself. There are no transaction reversals and everyone can verify every transaction.
#1001

1- That means that transactions can not be reversed, once a transaction is processed there is no way to reverse it, it will be forever integrated in the blockchain.

2- Because with finality all transactions become mathematicaly verifiable wich eliminates trust in some third party or authority, the source of trust is the network or protocol and the ability to validate it.

#1002 
1. What do we mean when we say that blockchain has transaction finality/immutability?
	Transactions cannot be reversed.  No chargebacks. 
	
2. How does this lead to the trustless environment that blockchain creates?
	a. Can do business with anyone. Do not have to trust people/org.  Trust is in the protocol and the math.
#1003

Finality=trustless…

#1004
  1. What do we mean when we say that blockchain has transaction finality/immutability? Once a transaction has happened on the blockchain it cannot be undone and it remains there forever, removing trust issues.
  2. How does this lead to the trustless environment that blockchain creates? Transactions are final and removes the possibility of being scammed, The blockchain transaction cannot be undone and the transaction is verifiable mathematically.
#1005
  1. Finality for blockchain means that once a transaction goes through it can not be reversed or undone.
  2. Finality leads to the trustless environment for blockchain because there is no chance for either parties of a transaction to do a charge back.
#1006
  1. It means that cannot be reverse by any method
  2. Because of all transactions confirmed are final, that leads to have the certain of you can’t be scammed and all of the information that’s on the network has it’s the TRUTH.