Homework on Finality - Questions

Blockchain and Bitcoin 101
#1147

1: That a blockchain transaction cannot be reverted. A blockchain transaction will always be final.

2: With finality you know that when you receive the money it is yours. There is no way that it can be charged back from you.

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#1148 
        What do we mean when we say that blockchain has transaction finality/immutability?
        Due to the nature of blockchain, the actual value of a bitcoin private key is the history of it. 
        In order to prove the history you need to be sure that once a transaction happens it cannot be reversed.

        How does this lead to the trustless environment that blockchain creates?      
        Blockchain can be trustless because since there is no central party, everyone can see the same history.
        As long as both parties in a transaction agree on the history value can exchange.
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#1149

  1. Once a transaction has been verified, it cannot be changed or reversed. It is permanently recorded on the blockchain.

  2. You can engage in business with anyone on the blockchain. Every transaction is final and cannot be reversed. Users can rely on the immutable mathematical protocols of the blockchain.

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#1150

FInality means that there are no questionable transactions. Once a transaction is created, and sent, the receiver will have the funds, no questions asked.

There is no need for trust in blockchain with finality. No scamming, no chargebacks, nothing like that because once it is written on the blockchain it is there forever and cannot be changed.

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#1151

  1. Once a transaction is verified and added to the blockchain it cannot me removed or altered.

  2. People don’t need to trust strangers, they trust the network which verifies transactions mathematically.

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#1152

If you need a refund for some reason, the vendor can refund a buyer with another immutable transaction. Where there is proof on the blockchain that he got refunded

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#1153

1/Once transactions has happened we can’t take it back or refunds.

2/Because we trust the protocols and proof of work which are proven mathematically by mining and physics.

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#1154

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • Once a transaction has been verified by the network and added to the blockchain, it cannot be reversed or manipulated - it stays on forever.
  1. How does this lead to the trustless environment that blockchain creates?
  • There is no risk for a transaction te be reversed as it cannot be changed/altereret once it gets on the blockchain. Once you receive your funds, its yours. Do to finality we can do business with anyone without trusting them.
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#1155

It means that any transaction written to the blockchain cannot be changed anymore. The transaction cannot be reverted and will stay for ever.

With trustless we don’t mean that there is no trust involved. Basically we mean that we trust in math and protocols and call this trustlessnes. It means that we use math to validate the truth and therefore we don’t need to trust on anything else. It is all based on the math invented by us humans and the experience we made that there is a strong correlation with physics. Even going further we use math to prove even physical laws (assuming that there are any static unchangeable laws in out universe) that have not been proven by experience yet.

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#1156

  1. We mean that once a transaction has happened it has happened once and for all, it is irreversable. And it can be confirmed and verified mathematically and physically.

  2. It allows to connect strangers who can trust each other knowing that blockchain transactions are final and immutable.

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#1157

  1. What it means for blockchain to have finality is that once a transaction if made, it cannot be reversed or modified. The transaction makes it to the ledger no matter what.

  2. Finality leads to a trustless environment because once a transaction is made, there is no way to refute that transaction. Unlike the conventional system of buying and selling, a consumer has the power to scam the seller by claiming that the product purchased was never received even if it had indeed been received. This claim is will need to be verified by a second party or by the company, which takes up resources. Otherwise, seller will just have to trust that the consumer is telling the truth and offer a refund or send the product again. (this happens all the time with Amazon)

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#1158

  • What do we mean when we say that blockchain has transaction finality/immutability?
    —once a transaction takes place there is no way to get it back

  • How does this lead to the trust-less environment that blockchain creates?
    —by having finality, consumers cannot scam businesses and vice versa; everyone is able to trust the network because it is verified mathematically

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#1159
  1. Once transaction is processed it’s impossible to reverse.
  2. It’s impartial & public
#1160
  1. Finality means that a transaction cannot be reversed once placed on the blockchain.
  2. By ensuring that people place their trust not in each other but rather in math and physics (i.e. the blockchain protocol)
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#1161

  • What do we mean when we say that blockchain has transaction finality/immutability?
    That transactions cannot be changed.

  • How does this lead to the trustless environment that blockchain creates?
    Mining (POW) and the immutability makes the system so secure that trust is not necessary

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#1162

1 It means that the information cannot be altered.

  1. It reduces the ease of scamming, there needs to be proof of work
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#1163
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means that transaction cannot be reversed or cancelled. It is important in a trustless enviroment where you have to rely on the rules (math) of the system.
  2. How does this lead to the trustless environment that blockchain creates?
    Because if you can modify what it is stated as the truth, than everything become opinable.
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#1164

I means that transaction cant be reversed and its on blockchain forever

Because there is possibility of paying after or canceling transactions after the deal…

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#1165
  1. What do we mean when we say that blockchain has transaction finality/immutability?

A transaction on the blockchain has finality because it cannot be reversed or revoked. This property of immutability is a natural corollary of one of the basic features of a blockchain i.e. you can add data onto a blockchain but there is no provision to remove data.

The finality of a transaction is a very desirable feature for the “seller” in any sort of financial transaction especially as many online vendors are vulnerable to buyers cancelling their credit card payments without actually returning the goods. Vendors can thus safely do business with strangers across the world as no trust is required.

On the other hand, this finality could leave the “buyer” in the online blockchain transaction in a vulnerable position (compared to a credit card transaction) unless extra conditions and guarantees are put into place to ensure that the goods paid for are as advertised.

For blockchain transactions that are not financial, the finality and immutability of the data results in a database that is incorruptible.

  1. How does this lead to the trust-less environment that blockchain creates?

A blockchain transaction will dispassionately follow the designed mathematical and logical process whatever the nature and characters of the participating entities. Such a transaction is untainted by human traits and this results in a trust-less environment.

This trust-less environment created by the blockchain is a huge benefit for trading and transactions in countries that are high risk to operate in.

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#1166

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transactions cannot be reversed which means that once you’ve sent BTC, there is no way of getting it back, and that transaction is “engraved” or tattooed upon the blockchain network as irrefutable proof of transaction confirmation.

  2. How does this lead to the trust-less environment that blockchain creates?
    There is no way customers can scam or commit fraud by pay back credit card schemes after goods received.

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