Homework on Finality - Questions

Blockchain and Bitcoin 101
#1207

Finality means that once a transaction is confirmed it cannot be undone

This leads to a trustless environment because the dependence is on the math and not on a person. If the protocol and the consensus approves the transaction, two strangers can eliminate the need for trust.

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#1208

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has happened there is no way to reserve it. The transaction canā€™t be modified.

  2. How does this lead to the trustless environment that blockchain creates?
    Instead of placing trust in a person not requesting their money be returned, you know that the currency is in your wallet and it cannot be touched. The trust is shifted from the individual to maths, protocol and consensus.

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#1209

  1. It means that the transaction is final - there cannot be lost transactions or charge backs. The transaction once executed gets completed

  2. Miners use electricity in the performance of processing which creates transaction blocks, which provides proof of work. So there can be no fraudulent transactions or tampering with the transaction

Anita

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#1210

  1. Transaction finality is the state of the unchangeable transaction once it has verified the money to an individual.

  2. This leads to the trustless environment because both parties understand the process of the transaction and the verification is set in the digital stone.

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#1211
  1. We mean that once a transaction is validated by the nodes in the network, it cannot be rolled back.
  2. By using a mathematical network algorithm that validates the blockchain data with all the nodes there is no need of ā€œtrustā€ between them.
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#1212
  1. it means you cannot go back and change the information on the public ledger
  2. because when the information is stored it cannot be changed and is public information
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#1213

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    You cannot take or lie about transactions and all transactions are final.
  2. How does this lead to the trustless environment that blockchain creates?
    Trust is taken out of the equation which in turn allows to to transact with strangers without the fear of fraud.
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#1214

1: All transactions are final and canā€™t be reversed
2: the seller doesnā€™t have to trust the buyer not to charge back because itā€™s impossible

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#1215

Finality/immutability mean that the transaction is final and non reversible. The transaction will always exist on the blockchain network.

Blockchain creates a trustless environment as we do not need to place our trust in a person/stranger, but we can trust that we will receive the transaction through blockchain

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#1216
  1. when a transactions has been sent, verified and it becomes final and you canā€™t get it back or cancel it if it has been confirmed.
  2. it becomes a trustless environment because you can do business with strangers and do not have to trust them. They cannot take the money back because there are no chargebacks
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#1217

Transactions cannot be reversed.

The network verifies the transactions. Removes trust out of the equation, which helps to do business with strangers.

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#1218

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

Means thereā€™s no way back from a confirmed transaction.

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

By involving of multi nodes spend physical energy to confirm transaction as incentivised.

So, can we say that the finality is a fact that trusting only to math and protocol required? and is in reverse proportion to decentralized truth-determining?

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#1219
  1. What do we mean when we say that blockchain has transaction finality/immutability?

Once a block has been entered/generated it cannot be deleated nor altered. (Technically one could alter a block if they somehow controlled and altered 51% of the network however the costs far outweigh the potential rewards.)

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

The blockchain is publicā€¦forever. The blockchain is irreversible and as such one does not need to trust the people one only need trust the technology.

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#1220
  1. Blockchain transactions are final and immutable in that they can never be undone. A bitcoin that is sent, for example, cannot be reclaimed by the sender. If the sender made a mistake in sending it, the mistake cannot be reversed. So a blockchain network is intolerant to human error at the level of the execution of transactions.
  2. On the brighter side, however, this intolerance to error also serves as a protection against fraud. For transactions that are absolutely factual and immutable, can never be falsely contested. So the recipient of a transaction cannot falsely claim not to have received that transaction and the sender thereby is protected against the fraudulent claim that he or she never sent what he or she did in fact sent. In consequence, complete strangers can interact with each other without fear of being taken advantage of. That is to say, the need for sender/receiver mutual trust is here replaced by trust in the principles that organize the blockchain, and hence the blockchain environment may be said to be trustless.
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#1221
  1. What do we mean when we say that blockchain has transaction finality/immutability? The transaction cannot be reversed verified by a mathematical formula (transaction number in blockchain).
  2. How does this lead to the trust less environment that blockchain creates? Total strangers can exchange goods and currency because each transaction needs to be verified prior to it being processed. False transactions cannot take place in this environment.
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#1222

  1. When you have made a transaction, itā€™s irreversible. You canā€™t take it back, you canā€™t ask anyone to change it.

  2. You can make transactions with complete strangers, since there is no trust. Trust the math and the protocols.

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#1223

  1. That once a value change (transaction) has been engraved in the block there is no way to cancel or delete it.

  2. transactions are binary with no grey zone once the value has changed there is no way back. Less third parties or option to manipulate the system means less need in the element of trust for the end users on block chain tech.

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#1224

Blockchain has finality because once a transaction has been sent and confirmed, there is no way to change it or for someone to make a charge back. And itā€™s immutable in the sense that it cannot be altered, once a transaction is recorded in the blockchain, it remains there essentially forever because the network builds on top of it making it harder and harder to corrupt.

This leads to the trustless environment because you donā€™t need to think that a transaction might be reversed or changed once confirmed, so a company could rely on transferred funds for example, knowing that they will receive them for certain.

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#1225

Finality in bitcoin comes from miners. As long as mining is decentralized we will have finality.

#1226

1 - When a transaction happen , verify and confirm , can not be reverse.
2- we can do business with strange without trust them , because they can reverse the transaction, we the network .

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