Homework on Finality - Questions

  1. It means that it is impossible to reverse, to stop, to alter or to delete, a transaction after you have ‘signed’ its execution. The transaction is recorded on the blockchain forever (for better and for worst).

  2. For a transaction to be recorded in a block (added to the blockchain), its authenticity is mathematically verified using the proof-of-work (PoW) protocol. Consuming electricity and computing power to mine the block containing its record. By relying on the purity of mathematics, strangers can do business together, and keep it that way.

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  1. Transactions are accepted by the blockchain and can never be reverse or removed. This is a physical process dictated by the protocol.

  2. All transactions are available for anybody to check. You only need to trust the math, protocol and the network.

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  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transactions cannot be reversed once confirmed.

  2. How does this lead to the trustless environment that blockchain creates?
    Once the transaction has been confirmed we know it cannot be reversed or canceled so we trust the verification of the network of computers, the physical work/energy put in cannot be unmade.

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  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction is written on the blockchain (after a certain number of block confirmations) it can no longer be modified or tampered with. It is final, irreversible.

  2. How does this lead to the trustless environment that blockchain creates?
    The famous saying applies here: Don’t trust, verify! In other words, knowing that blockchain is immutable, you don’t need to trust the party you are transaction with, you find the truth by checking the blockchain.

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  1. What do we mean we say that blockchain has transaction finality/immutability?
    It mean that once the transactions happened there’s no way to be reversed.

  2. How does this lead to the environment that blockchain creates?
    Beacuse transactions on blockchain can’t be reversed blockchain bin the transactions permanently.

1- We mean with that there is noway to reverse a transaction once it happens, it becomes final.
2- Tansactions in blockchain are final and can not be reversed the environment become trustless since trust goes to the protocol

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1 - You mean that once a transaction is validated and recorded in the blockchain, it cannot be reversed, or edited, or deleted, on cancelled. It is a final record on that transaction.

2 - It leads to a trustless environment because the validation can be mathematically verified by its protocol. The application of this same protocol guarantees immutability. And the protocol veracity is verifiable by anyone. When anyone can verify, trust is unnecessary and becomes obsolete.

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  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Finality: once a transaction is verified its not reversible it can’t be changed, this removes the possibilty for bad actors.

  2. How does this lead to the trustless environment that blockchain creates?
    proof of work encodes a trust-less word that is verifiable through proofs as opposed to trust?

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

Once transactions are completed, they may not be erased, deleted, canceled,
or altered - changed in any way!

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

This leads to a high state of Trust, since transactions can be verified-proven mathematically,
prior to any human being’s claims to the contrary -
thereby precluding and hopefully preventing deceit, scams, theft, etc.

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1- Finality on the blockchain simply means no transactions can be reversed once there processed.

2- Trust is not needed with the participants of the transaction when the network is verifiable.

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  1. Once a transaction is entered into and is accepted and verified on the blockchain it is permanent and cannot be changed or reversed.

  2. Because of feature of immutability and finality it means no need for 3rd party verification. Strangers can trust each other because when a block has been made it can’t be removed. Bitcoin for example, if a transaction had been made and confirmed it cannot be cancelled or refunded.

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What is meant by transaction finality is that once a transaction is has commenced it can not be undone. The action step is final. The transaction has taken place. The process of verifying the action step of the transaction involves proof of work. For Bitcoin, the mining that is utilized in this proof of work systems uses actual electricity to mine or formulate the blocks which prove that the action on the network/ledger has indeed taken place. This is why once the transaction is done it cannot be undone. It is final. There are no charge backs like there are in the regular banking system.

This leads to a trustless environment, because everyone that uses the system is able to trust in the mathematical computations, the incentivized nature for the proof of work scenario. When we are able to trust in the math, it makes it much easier to transact directly with strangers and across larger distances for the transaction.

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  1. Finality/immutability in the blockchain means that the information processed into the blockchain cannot be altered or manipulated because of the unique hashes that are created for every block and how the hash of the previous block is included into the next block thus creating the chain in blockchain linking up the network.

  2. Transactions can’t be reversed or duplicated.

Once a transaction is completed, it is immutable. Meaning it can no longer be edited ever and this is a permanent record of this entry in the blockchain. Because of this, all transactions are public forever and can be verified mathematically. This creates a trustless environment.

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Hi there!! Maybe not when sent, but when they are mined. You can send the same transaction twice, but the one with higher fees will bet mined first, the other will be invalid.

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Maybe we can say that enables participants to interact with each other (like sending transactions), without trusting each other, as they will trust the protocol. What do you think?

Hi there!! Yeah, third time is the charm! You can always use the pencil icon to edit your messages! :slightly_smiling_face:

Felipe.

Hey there!! You mean that, for example, only 1 miner exists (or a few that control more than 50% of the miners)? In this case, yes, they can alter the blockchain, as there will me a majority of participants that accept certain version of the blockchain. This is why new blockchains are less secure, as there are less participants and no real consensus between many different parties!

Hope that answers your question!

Felipe.

Hi there! It also enables parties to interact with each other without trust, because we trust the network, the protocol!

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Hi there! Basically, this lets user interact with the network without the need to trust 3rd parties!