Homework on Finality - Questions

Blockchain and Bitcoin 101
#1327
  1. That once a transaction is confirmed to the blockchain it is irreversible.
  2. Once a transaction is posted and achieves consensus and added to the blockchain backed by mining/ proof of work, you can verify and believe that this is the source of truth and it actually occured, this creates a trustless environment.
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#1328

What do we mean when we say that blockchain has transaction finality/immutability?
Means the transaction cannot be reverted or “refunded”

How does this lead to the trustless environment that blockchain creates?
Means we can do business with strangers knowing/trusting the protocol will work as it is designed and prevent dishonest actors from taking advantage of someone else

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#1329

  1. Once a transaction is confirmed on the blockchain it cannot be reversed or modified.

  2. This provides a guarantee that the transaction has been successful, that the transaction hasn’t been duplicated or reversed and that no new money was created in the process.

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#1330
  • What do we mean when we say that blockchain has transaction finality/immutability?

Once a transaction is done, it cannot be reversed or changed.

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

The blockchain infrastructure is a trust less environment, thus all the components are verifiable. This environment allows two strangers to conduct business.

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#1331

  1. Once a block has been added to the chain it can’t be reversed or cancelled.

  2. Because we are relying on math, not people.

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#1332
  1. No undo button. No resets. No neverminds. Blockchain is decisive and full of intent.
  2. Verification is readily available and can be openly audited on either end of the transaction.
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#1333

1 irreversability of transactions
2 you don’t have to look back as long as the nodes keep going

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#1334
  1. What do we mean when we say that blockchain has transaction finality/immutability?

It can’t be modified

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

You do don’t need to trust anyone not to modify a transaction. e.g to claim that a payment hasn’t been made, or some goods haven’t arrived.

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#1335

  1. We mean that transactions cannot be reversed and if you accidentally send btc to worng adress there’s no way of getting it back

  2. It leads to the trustless environment in a way that all the transactions are saved in the network’s database

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#1337
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means that you can’t turn back your transaction or somehow to be refinanced, no matter the reason.
  2. How does this lead to the trustless environment that blockchain creates?
    All the transactions are mathematicaly proven, no third party involved. So only you can varify a transaction.
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#1338

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means that it is impossible to reverse a transaction once it is confirmed.

  2. How does this lead to the trustless environment that blockchain creates?
    The system is trustless, because all transactions are final. For example, you don’t have to worry about chargebacks. There is no way to change transactions that are confirmed.

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#1339

I assume you meant to say that you can’t change your mind? :slight_smile:

#1340

The blockchain will check if the users has the funds. Also there is no way for you to take your transaction back once you sent it to someone for any sort of good.

#1341

That’s a very good way of saying it. Great answer. :smiley:

#1342

I am not sure if I understand your answer. The point is that the miners ensure that your transaction can’t and won’t be reversed or modified in any way. This removes trust from people and gives the trust to math.

#1343

Yes. The only way to get your money back is to ask the owner of the address that you send money to. Finality is a pretty powerful feature. :smiley:

Everyone can verify any transaction. :wink:

#1344

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

It means once a transaction has been confirmed it cannot be reversed.

How does this lead to the trustless environment that blockchain creates

Because blockchain makes data immutable/irreversible and everything is verifiable with maths.

Instead of requiring a third party to facilitate trust, we trust maths and the protocol.

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#1345
  1. Confirmed transactions are virtually impossible to reverse on the blockchain.
  2. This finality makes it easier for strangers to interact on the blockchain without concerns about trust.
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#1346
  1. Means whatever you put into the blockchain stays there forever.
  2. As a user you can be sure that transactions/exchanges won’t be reversed, spent, altered or frozen. In other words, the decentralised system cannot easily be corrupted.
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#1347
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction is confirmed there is no way for it to be cancelled or for any way to reverse it. It becomes a permanent record on the public ledger
  2. How does this lead to the trustless environment that blockchain creates?
    It ensures that whoever you deal with all parties can be assured that what was said to have happened did happen, it provides trustless environment where no 3rd party is involved or needed
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