Homework on Finality - Questions

Blockchain and Bitcoin 101
#1067
  1. Once the transaction is confirm its final it cannot be taken back.
  2. It become a trustless environment you can always transact businesses with stranger and if the transaction is confirm they can`t take that money back.
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#1068

Itā€™s not verified by a random third party, but by everyone with a full node.

#1069

  • What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction was confirmed, it cannot be revoked again. If you send money, thereā€™s no way for you to get it back.

  • How does this lead to the trustless environment that blockchain creates?
    Party A can be sure that payments from Party B cannot be revoked. That means Party A doesnā€™t have to trust Party B. Once they receive the money, itā€™s theirs and cannot be taken from them.

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#1070

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means once a transaction has been verified it is final and canā€™t be reversed.

  2. How does this lead to the trustless environment that blockchain creates?
    Because once a transaction is final it can be verified with maths.

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#1071

  1. Once a transaction is done thereā€™s no going back or changing.

  2. Every transaction can be verified so thereā€™s no need to trust anyone.

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#1072

Hi, I have a question? How it means we can do business with strangers, for example, A stranger told us, he will give us a car when we pay to him, and then we send our money to a stranger and he never gives us a car? Or it means in the blockchain he puts an advertisement for selling a car and when we pay him and then he needs to give us a car. What will happen if then we donā€™t give us a car? Ty.

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#1073
  1. Because there is no way of reversing/changing the accepted transaction.
  2. We donā€™t have to trust the other participants, we trust the network and math behind it.
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#1074

1 Transaction finality means that the transactions canā€™t be reversed nor modified or deleted in any way (only added).
2 Since the transactions can not be reversed or changed (and at the same time convalidated by the whole network) thereā€™s non need to trust the other party.

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#1075

Not if you do business with honest businesses. If you made a mistake, or the vendor canā€™t deliver the goods for some reason, you can always get your money back with a new immutable transaction where you have proof on the blockchain that you got refunded.

#1076

Crypto canā€™t solve the problem of people sending money to shady businesses that donā€™t deliver. You just have proof on the blockchain that you payed a certain amount to some address.
Itā€™s more a good thing for vendors. Once they receive a payment of a stranger in Bitcoin, they are 100% sure they got the money and can ship the goods. They know that no third party can reverse or cancel the transaction. Itā€™s a known problem in business that people get payed with credit card, ship goods and the buyer canceled transaction through their bank (charge back)
In honest businesses, buyers can proof their payment on the blockchain and sellers know that once they receive a payment, they canā€™t reverse it. In case there is a charge back needed for some reason. For example that the seller canā€™t deliver. They can refund the buyer with a new immutable transaction where you can proof on the blockchain that the buyer got refunded.

#1077

1.What do we mean when we say that blockchain has transaction finality/immutability?
Once a transaction has been hashed it is final and cannot be undone, changed or altered (immutability). You cannot remove data in the blockchain.
2. How does this lead to the trustless environment that blockchain creates?
Immutability removes trust with hashed confirmed transactions therefore you can do biz with others in a safe environment. Once hashed it has been confirmed.

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#1078

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

Once a transaction has happened there is no way to get it back or reverse the payments.

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

The transaction can be verifies mathematically.

there is nor doubt in the system due to scientific calculations. Prove of work and mining are important.

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#1079
  1. Once a transaction has been confirmed, it is done, cannot be ā€œundoneā€.
  2. People do not have to ā€œtrustā€ or invest in the ethicalness of another on either side of a transaction. Trust is in the network and protocol.
#1080

Homework on Finality - Questions

What do we mean when we say that blockchain has transaction finality/immutability?
We mean that the transaction cannot be revoked. This is an important requirement in order to create a network based on consensus.

How does this lead to the trustless environment that blockchain creates?
Once the users arrangments are registered their will cannot be changed by arrangments of any third part

#1081

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

  • It implies that once the transaction is finished, it can not be reversed.

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

  • This makes it possible to make transactions with other parties/ strangers without trusting them. The trust is in the network and the protocol.
#1082

Everyone in the network has to approve it?

#1083

1: transactions on blockchain are not revokable. finishing a block costs a lot of money (energy, hardware,ā€¦). once a block on blockchain is finished it will therefore not be re-opened.

2: when on the one hand i can not revoke money once sent to another person, on the other hand also the other person can not revoke money he/she sent to me. means, I do not have to trust the person that he/she wonā€™t revoke the transaction.

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#1084
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once we put a transaction in the blockchain it canā€™t be removed or changed.
  2. How does this lead to the trustless environment that blockchain creates?
    Every transaction is open, everybody can see who is sending money to someone. We donā€™t need trust, just go and check by yourself.
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#1085

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    This means that once a transaction has happened it is set in stone (or diamond) and there is no way to manipulate further or alter that transaction - it is thus on the blockchain forever

  2. How does this lead to the trustless environment that blockchain creates?
    The trustless state is arrived at as the counterpart or opposite end of a transaction cannot change back a payment. Trust is actually moved from individuals, businesses or organisations, over to the independent (and public) entire network as verification is a mathematical process.

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#1086

Every full node has a copy of the whole blockchain an validate every transaction. So itā€™s impossible to change something because everybody has the same copy.