Homework on Finality - Questions

Blockchain and Bitcoin 101
#1047
  1. It means that each transaction made in blockchain can not be canceled or refund.
  2. This lead that people cant cheat or lie about transactions because its save in the network forever and its irreversible. There are also other ways to get the money back with companies, explaining all to the customer service for a refund.
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#1048
  1. Blockchain has transaction finality because every transaction is FINAL. There can be no chargeback, nor can you reverse transactions. All transactions on the blockchain cannot be removed.
  2. Because it allows you to conduct business with strangers with people you do not know because the environment is protected by Mining and Proof of Work.
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#1049
  • What do we mean when we say that blockchain has transaction finality/immutability?
    Transactions cannot be reversed, it is physically impossible.
  • How does this lead to the trustless environment that blockchain creates?
    You don’t have to trust other parties, just trust the network.
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#1050

  1. What do we mean when we say that blockchain has transaction finality/immutability? In the blockchain technology it is not possible to edit or remove transactions, they can only be added if the network agrees and comes to consensus that the transaction is correct and acceptable.

  2. How does this lead to the trustless environment that blockchain creates? you don’t need to trust anyone, the math and algorithm in the protocol is all you need to trust, because you can be sure that the transactions is verified as the become part of the chain and in no way can be changed or removed. No one can withdraw a transaction that has been accepted.

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#1051
  1. Transactions cannot be reversed or deleted from the ledger
  2. You do not need to depend on the parties on the other end of the transaction to be honest or legit. There are no worries about either legit or illegitimate disputes that could result in a reversal of a transaction
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#1052

1-Irreversible transactions
2- Understanding that transactions are immutable on the blockchain would at the same time mean that you wouldn’t use a blockchain for a transaction unless you absolutely knew that you won’t have to reverse the transaction in the future. When every on transacting on a blockchain understands this, you have a trustless environment.
This is opposed to a traditional transaction which would rely on a bank or intermediary to carry out the transaction.

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#1053

[quote=“ivan, post:1, topic:8424”]

  • What do we mean when we say that blockchain has transaction finality/immutability?
    it is not reversable, it will stay forever on the blockchain.
  • How does this lead to the trustless environment that blockchain creates?
    because you know no one can reverse a transaction, therefore you trust the math
1 Like
#1054
  1. What do we mean when we say that blockchain has transaction finality/immutability?

Transactions are final and permanent - there is no opportunity to scam by making a purchase and then canceling payment through a bank.

However this does beg the question: is it therefore easier for shady merchants to scam buyers? Refusing refunds when they are merited, etc.

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

There is no longer a need to trust that a payment will be processed and credited. It cannot be altered.

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#1055
  1. transactions are final once both parties agree.
  2. it creates a system where when people are going go finalize on a transaction. they both know there is no going back. So both parties are 100% sure before finalizing their agreement.
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#1056

Homework on Finality - Questions

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

Any transaction that has been added to the blockchain and confirmed cannot be altered. BTCs sent are lost forever. This is accomplished with the use of cryptographic hashing

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

Because the blockchain makes use of hashing and public key cryptography at its core, the blockhain can guarantee immutability and non-repudiation. Trustlessness is baked into its design.

#1057

Finality enhances trust. Each party in a transaction is aware that there is no reversal of funds or refunds. This means that complete strangers can do business with each other and limits scammers. It increases the creditably of the blockchain because it proves that entries in the ledger are tamper proof and memorialized forever.

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#1058

1.As it sounds, the transaction is being an irreversible ending. Impossible to reverse a transaction, once done it is done, when send and confirmed it is no way back.

2.It is trust in the system and the network. You can do business with strangers and without trusting them. When a system has trust, it can be abused, for example customers claiming money back even if they got the product.

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#1059

When a transaction it is insert in the block it become irreversible.

Anybody can have a transaction with anybody. Trust relay completely upon complex mathematical algorithms, and not anymore on human moral integrity.

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#1060

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once the network has reached consensus regarding a transaction, that transaction cannot be reversed, it is final and not changeable.

  2. How does this lead to the trustless environment that blockchain creates?
    Since the recorded transactions on the blockchain are immutable, historic transactions can be fully audited and verified with 100% certainty so there is no need to rely on a central third party.

2 Likes
#1061
  1. once the transaction is executed it is permanent and not reversable.
  2. It means that no trusted party (such as a bank, credit card company etc…) is needed to confirm the transaction. If i have the money, i can send it… but if i send it… it is gone. The trust is provided by the blockchain protocol and not by some entity
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#1062

  1. Once a transaction has happened it has happened. It cannot be reversed.

  2. We don’t have to trust that the party on the other side of a transaction will not do a charge back like they can with credit card purchases.

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#1063

Yeah, there are no coins in your Wallet. Only utxo’s from transactions on the blockchain. Many people think that bitcoin is send to their wallet. But actually, your Wallet checks wich batches of bitcoin you are able to spend with your keys.

#1064

Yes, but honest businesses will refund you in case a customer made a mistake or something. With a new immutable transaction (where you have proof on the blockchain that you got refunded)

#1065
  1. There is no reversing of transactions, they are final, no taking it back or being dishonest and saying you didn’t receive item/payment.
  2. You don’t need trust because everything is documented by several networks. You can do business with strangers because you trust the system, there is accountability and everything is verified/documented.
1 Like
#1066

Homework on Finality - Questions

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

  • once a transaction is made, it is not reversible.

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

  • transactions can’t be reversed or duplicated. Once can conduct business with strangers and do not have to trust them. They cannot take the money back because there are no chargebacks.
1 Like