Homework on Finality - Questions

[Agworm]

1. this means it final and can not be revised.

2. you can do work with people you do not know.

[Mauro]

@ybernaerts

1. Once a transaction is verified by the network of cpu’s, it’s done and cannot be deleted. It’s therefore final and immutable.
2. I don’t need to trust you, I trust the network of cpu’s, i.e. the math, the mining, for your transaction to be a valid one.

All answers are good but computers that run the bitcoin blockchain are called nodes, not cpu’s. Cpu is only a component that can be used for minning. Later on you will learn why cpu is no longer used in bitcoin minning. Anyway, great job. Keep it up.

@Glenn_CostaRica

Glenn_CostaRica

1. What do we mean when we say that blockchain has transaction finality/immutability?
Finality is a consequence of immutability: data that has been printed on the immutable ledger cannot be erased or modified, therefore it determines a new truth that cannot be disproved or reversed. Any new state of the blockchain is a final truth. It will stay immutable forever. Most public and decentralized blockchains, by design, do not admit any kind of reversibility of the truths established by their open ledgers.
**
2. How does this lead to the trustless environment that blockchain creates?**
Immutability and finality are pillars for trustlessness, since they help remove third parties like banks, judges or any organization that can tamper with transactions or states of the system

@Glenn_CostaRica A very nice and detailed explanation. Great job, keep it up.

[Glenn_CostaRica]

@Mauro Thank you for your kindness! It’s awesome to be part of this Academy <3

[Marc-C]

1. What do we mean when we say that blockchain has transaction finality/immutability? - Once a transaction has happened it is permanent and there is no way to get it back.
2. How does this lead to the trust-less environment that blockchain creates? - you now have the ability to securely do business with strangers because trust is removed due to the blockchain protocol. You rely on the math not the person. Ex. in the retail environment there is no way for a customer to utilize charge-backs with their bank.

[DigzBlockchain]

@ivan

Homework on Finality - Questions

1. What do we mean when we say that blockchain has transaction finality/immutability?
2. How does this lead to the trustless environment that blockchain creates?

1- Finality/immutability is just like it sounds… Final and unchangeable. Blockchain basics is that a transaction or entry on the Blockchain is always permanent and completely irreversible.

2- The public ledger can be confirmed mathematically, which negates the need for trust. In a Trustless system I don’t need to know or trust the other party.

Which is great for record keeping and Finance. But has issues in retail as there’s no mechanism for chargeback.

[Kevin1]

1. Transactions cannot be changed and are final

2. You are not reliant on a bank or payment facilitator to process transactions

[JosieA]

1. What do we mean when we say that blockchain has transaction finality/immutability?
   That there is no going back, once a transaction has completed it is locked in to the blockchain forever.
2. How does this lead to the trustless environment that blockchain creates
   Those reliant on confirmation of a transaction completing no longer need to trust that it will not be reversed because there is no way that that can happen. For instance, of the transaction indicates a payment has been made then a supplier can feel confident that the goods can be shipped because the payment is locked in.

[Bunbo_Hue]

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

It means that once a transaction happens, it’s permanent. There’s no way to get it back or erase the fact that it happened (like a stone tablet).

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

This means that anyone can perform transactions with anyone else, and not need to trust them. The money can’t be charged back or refunded.

[GBIT430]

1: It means the transaction can not be reversed.
2: Strangers can enter a transaction and they know that once it has been validated it is finalized.

[xeviuus]

1. once transaction is completed, there are no ways to change or modify it. it will stay there permanently.
2. because it’s not possible to change, element of blind “trust” is removed. it simply needs to be verified.

[Murray]

1. What do we mean when we say that blockchain has transaction finality/immutability?
   Once a transaction has been confirmed there is no going back. The transaction is final.

2. How does this lead to the trustless environment that blockchain creates?
   Since a transaction is confirmed by nodes, you do not have to deal with trusted individuals. the nodes do the checking before a transaction is entered into the blockchain.

[jcampos]

1. What do we mean when we say that blockchain has transaction finality/immutability?
   If a transaction finish, we cannot revert it.

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

We need to be careful to whom do we do business, for example, if we want to buy something and we pay for that but if we didn’t receive the product, we cannot revert the transaction and we will lose the money

[Mauro]

@Kevin1

2. You are not reliant on a bank or payment facilitator to process transactions

Yes, because we rely on the way bitcoin works. No need for trust. In bitcoin we verify.

[Dom]

• What do we mean when we say that blockchain has transaction finality/immutability?
  Irreversibility of transactions
• How does this lead to the trustless environment that blockchain creates?
  No dependence on third party to confirm or complete transactions creates trustlessness.

[Beeks]

1- Transaction finality means no refund. It is done and cannot be reversed.
2- You can do business with strangers without trust them.

[Caupuri]

What do we mean when we say that blockchain has transaction finality/immutability? Transaction finality means that once a transaction has happened, it’s impossible for it to be reversed.

How does this lead to the trustless environment that blockchain creates? By making a transaction irreversible, it means that the transaction can’t be charged back or changed in any way. Therefore, there doesn’t have to be any trust between the parties involved in the transaction.

[TrevPeter]

1. Transactions cannot be modified / deleted
2. All transactions are public forever.
   Trust counter party cannot reverse transactions.

[mithunsen]

• What do we mean when we say that blockchain has transaction finality/immutability?
  Once Transaction is done, it is done. It cannot be removed

• How does this lead to the trustless environment that blockchain creates?
  You do not need to trust any individual. You just need to trust the system

[Yrius]

1- Once the transaction is performed, there is no way back to remove or cancel it from the blockchain ledger.

2- Since the transaction can not be removed or canceled, it creates a trustful environment that you can make business with everybody in the world and you will get paid. This might cut several middlemen in current businesses.

[Schean]

1. What do we mean when we say that blockchain has transaction finality/immutability?
   Once the transaction happens, it couldn’t be changed.

2. How does this lead to the trustless environment that blockchain creates?
   The rule of finality applies to all parties without any compromise. All the participants could trust the blockchain instead of transaction parters.