Homework on Finality - Questions

Blockchain and Bitcoin 101
#1087

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

  • Once the transaction is added to the block and got proof or work confirmed the record is permanently stored and the block added to the chain that will be replicated throughout the network. To reverse or modify such a transaction requires the power to negotiate, incentivise, or coerce the majority of individual custodian of the replicated ledgers to do all the same reversal or modification.

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

  • The finality/immutability ensures you donā€™t have to trust your counterpart or the party at the other end of your transaction because the proof can be verified and cannot be compromised.
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#1088

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

    Finality in transactions means irreversibility. Whether the money was sent intentionally or accidentally nobody can undo the transfer unless the recipient decides to send it back.

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

    In the current financial infrastructure a buyer may choose to scam a seller by reversing the payment once a transaction has taken place and the purchased asset has been secured. This can be achieved simply by contacting their bank and claiming the transfer was fraudulent. Since the bank is unable to investigate every case they will always favour the buyer/account holder instead of remaining neutral.
    Finality in blockchains leads to a trustless environment because a recipient can be 100% sure that they wonā€™t be scammed via chargeback once their transaction has been confirmed. In this regard blockchain facilitates strangers to transact with each other.

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#1089

  1. Essentially, transactions cannot be reversed or otherwise changed. There is of course an exception: a successful 51% attack.

  2. One of the benefits, is that if I send you bitcoin in exchange for something, you cannot reverse the transaction after it is completed - a problem associated with credit card payments.

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#1090

  1. Finality refers to the irreversible feature of blockchain. Once a transaction is confirmed by the network it cannot be undone.

  2. This leads to a trust less environment because there is no 3rd party involved (ie bank) that can stop the transaction.

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#1091

What do we mean when we say that blockchain has transaction finality/immutability?
it means that transactions cannot be reversed.

How does this lead to the trustless environment that blockchain creates?
It means that you dont have to rely on a middle man.

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#1092

  1. Finality and immutability of transaction implies that once a transaction is processed and given consensus the, it can not be changed. Design of blockchain database also suggests that blocks can only be added but canā€™t be deleted. Thus, that transaction or block remains forever in a blockchain.

  2. Due to this feature of Blockchain network one can do business with someone without any need of trusting them. So, when transactions are processed, they canā€™t be reversed no matter whom we are transacting, making it a trustless environment.

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#1093
  1. Itā€™s is irreversible, once transaction happened it happened
  2. Transactions canā€™t be reversed or created out of thin air cause public ledger and pow is used
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#1094

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Past transaction blocks cannot be altered or that block will be rejected by other nodes. And transactions cannot be refunded or undone like traditional fiat transactions.

  2. How does this lead to the trustless environment that blockchain creates?
    The network verifies rather than having to trust a central authority to approve transactions creating a trust less environment.

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#1095

[quote=ā€œivan, post:1, topic:8424ā€]

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means once the transaction is initiated & verified, there is no way to reverse it.

  2. How does this lead to the trustless environment that blockchain creates?
    It leads to a trustless environment because if there is no central authority to petition a charge back or refund from, eliminating scams.

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#1096

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • This means transactions are final. No way to do a chargeback or tamper with a transaction when it is confirmed and stored on the blockchain.
  1. How does this lead to the trustless environment that blockchain creates?
  • Once one receives a transaction / payment, it cannot be changed.
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#1097
  1. What do we mean when we say that blockchain has transaction finality/immutability? Once a transaction has been excepted by the nodes and put onto the blockchain by the miners the transaction can not be reversed - it is final.
  2. How does this lead to the trustless environment that blockchain creates? Because of finality people donā€™t need to trust one another they can verify that the transaction has occurred.
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#1098

That once a transaction has been confirmed successful there is no way to undo or stop that transaction.

Because of the finality new buyers and sellers will join knowing that they will be protected, making the network trustless and larger.

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#1099
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transactions are final on blockchain. LITERALLY! Once a transaction has been accepted and written in a block, there is nothing that can be done to take it back. Its forever on the blockchain for everyone to see.
  2. How does this lead to the trustless environment that blockchain creates?
    Thereā€™s no need to trust when you can see when where and how the funds have gotten to you.you can trace a BTC all the way to its origin if you would really like. When everyone knows everything, thereā€™s no lying about it.
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#1100

  1. Transactions are irreversible

  2. It is POW, electricity has been used to create a block with a transaction in it.

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#1101

  1. Transactions are irreversible

  2. POW and Mining

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#1102
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It has a finality or immutability because when the transaction is complete and added to the block it can not be reversed. The deal is done! In the case of Bitcoin as a unit of value it would be like meeting somebody to buy a widget. You pay that person cash. That person leaves with the money. You can not reverse that transaction unless that person decides to hand that an agreed amount of cash back to you. That would be an entirely seperate transaction.
  2. How does this lead to the trustless environment that blockchain creates?
    This is trustless because there is no third party involved. our faith is in the math and the protocol. When a transaction is broadcast to the network thatā€™s it, deals done.
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#1103

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means that the transaction requires math and power usage with no potential for change.

  2. How does this lead to the trustless environment that blockchain creates?
    Since there is no trust and only math to verify transactions, it is easier to send or receive from strangers.

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#1104

  1. What do we mean when we say that blockchain has transaction finality/immutability? Blockchain has transaction finality and immutability because once a transaction occurs it is final, cannot be changed or reversed.

  2. How does this lead to the trustless environment that blockchain creates? Two parties can participate in a transaction understanding that no trust needed or fear of fraud or manipulation due to inability of either party to change or alter the transaction.

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#1105
  1. It means that a transaction has occurred and there is no going back.
  2. You know for a fact that a transaction has gone through and thereā€™s no need to trust the other party.
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#1106

What do we mean when we say that blockchain has transaction finality/immutability?
It means that the transaction after verification is final, it cannot be reversed.

How does this lead to the trustless environment that blockchain creates?
Strangers donā€™t have to trust each other to do business.

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