Transactions are forever, can’t be reversed
Enables strangers to do business without middleman
1 - What do we mean when we say that blockchain has transaction finality/immutability?
Once transactions are committed to a block and consensus is reached, that block, and therefore those transactions are permanently inserted into the chain.
2 - How does this lead to the trustless environment that blockchain creates?
By knowing that an entry is permanent and immutable and the protocol consensus algorithm was used to create the block, one can be assured that the transaction took place and cannot be reversed.
Immutability means once the transaction has been confirmed (validated) through consensus of the network it cannot be changed or deleted. There is no need for trust as transactions are verified and added to the blockchain.
A transaction that has been validated and accepted by the network is added to the blockchain. This transaction is immutable meaning it cannot be undone. Therefore the need to trust either party to honour the deal is removed. Payments cannot be reversed as in chargebacks.
What do we mean when we say that blockchain has transaction finality/immutability?
The blockchain has transaction finality/immutability because once a transaction is completed the transaction cannot be reversed.
How does this lead to the trustless environment that blockchain creates?
Finality/immutability leads to a trustless environment that the blockchain creates through verification through mathematics. The process cannot be reversed, altered, or removed allowing strangers to conduct business with one another in a trustless environment.
What do we mean when we say that blockchain has transaction finality/immutability?
It means the transaction cannot be disputed from the senders end. Once sent, the transaction is not reversible by any type of mediator.
How does this lead to the trustless environment that blockchain creates? It gives finality to every transaction that is made. If you mistakenly send a transaction you know its not coming back unless the user on the other end happens to be a very nice person…if they aren’t, there is no one to hear your dispute.
A transaction that is immutable cannot be reversed. This solves the double spend problem where a person might try to use the same dollar twice. For example it prevents someone buying something online and then once its delivered calling their bank and claiming the purchase was fraud, thus keeping the goods and the money and being able to spend the money again. With the blockchain once a transaction is verified it cannot be reversed. This provides certainty for both the buyer and the seller. A drawback of this system is that if the sender makes a mistake and sends to the wrong address there is no recourse to have the transaction nulled or reversed. This responsibility is part of taking over the banking function in your life.
Knowing that a transaction cannot be reversed means that a vendor can ship goods knowing that they cannot be defrauded. The finality means that all parties just need to trust the code, they do not have to trust eachother.
It means that it can not be reversed, removed and will stay on a blockchain forever.
2.
Trust factor is removed as it is not needed due to blockchain nature. Therefore making business with people is way easier and painless.
Once its sent it doesnt come back
The merchant doesnt have to worry about cashbacks or customers calling credit card and cancelling orders.
Finality/immutability means that once a transaction has been verified, it is impossible to undo it. There is no ctl + z. It’s one way system.
It helps to create trust knowing that the other party doesn’t have privilege to change decisions. This functionality is need for business to make progress in their plans. There is no potential for voiding transactions or returns inwards. It makes business certain
Transactions are unchangeable once confirmation is made.
The trust-less environment is created by virtue of finality of transactions meaning no reversal or interference with existing blocks.
What do we mean when we say that blockchain has transaction finality/immutability
Every transaction on the blockchain is final. You are not able to reverse that financial transaction. It has been written and remains on the Bitcoin stone. It is a done deal.
How does this lead to the trustless environment that blockchain creates?
Every transaction is noted on the block chain so you don’t have to rely on a trust bais as every transaction is done by math and verfied on the block chain. This therefore creates a trustless environment on the blockchain.
Homework on Finality - Questions
1, Finality means that once a transaction is completed, it cannot be reversed and is permanently stored on the blockchain.
2, Consensus verifies the transaction, so there is no need to trust anyone, Just trust in the blockchain !!
once a transaction has been finalised or approved on the blockchain it can not be undone or reversed it is carved in stone as the first video describes it.
now that people can never take back their money they promised to pay less trust will be needed between the buyer and the seller.