Homework on Finality - Questions

Blockchain and Bitcoin 101
#1550

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

when we say that the blockchain has finality/immutability i assume we mean that once a transaction is made on the network and its confirmed by the network, theres no way to change or reverse the transaction. not only that but its for all to see on the network. you can only go foward.

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

I assume that this creates trust because of the fact that once anything is done on the blockchain like changing/updating information or in btc’s case a transactions, there’s no way to reverse the action, nor is there a middleman in between the transaction to have a say or a cut. Also the end fact that everyone can see the transaction.so everyone has the same updated information to harness.

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#1551

  1. It means that once a transaction is completed there is no way of reversing it. The transaction is final and will be there forever.

  2. When you make a transaction with someone you do not need to worry about who this person is. Because once the transaction is done. It is not possible to be scammed by reversing the transaction.

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#1552

Because all transactions are mathematically verified by the miner who solve it, and all the nodes that sees it.

#1553
  1. Finality comes from the fact that transaction and settlement occur simultaneously in the bitcoin system. The mining of blocks irreversibly connects the transaction to a moment in time (if not space). The proof - of - work required to verify transactions makes reversibility “entropically” impossible. If in traditional finance, “time is money”, then in bitcoin, “money(or value) is time”.
  2. The irreversibility of transactions means I dont have to worry about value transfer being reversed. (i.e. like fraudulent chargebacks with credit cards)
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#1554

What do we mean when we say that blockchain has transaction finality/immutability?
It means when a transaction enter the blockchain there is no way to reverse it back or change it

How does this lead to the trust less environment that blockchain creates?
Having trust less means there is no need for third party to be involved . Therefore , every business use blockchain can work without having any trust issue on any party .

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#1555

Hi there! Actually, there can still be scams using blockchain, as you may be a client that pays for an item that never arrives, and the irreversible feature is not on your favor.

Felipe.

#1556

Hi there!! Miners include verified transactions in a block, so once your transaction is included, its irreversible, it’s final. So, can you answer question #2 with this info?

Felipe.

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#1557
  1. What do we mean when we say that blockchain has transaction finality/immutability?

By finality and immutability, we refer to the fact that once a transaction has happened there is no way to get it back, it will be on the blockchain forever and it is irreversible. Even in the case of accidentally sending some Bitcoin, this action cannot be reversed once it is confirmed. However, the key advantage is that this also removes the need for “trust”, whereby all network participants know that once a transaction is executed to completion, it is verifiably owned by the recipient.

It is also important, therefore, that companies evaluate the very specific, powerful and groundbreaking use cases that blockchain offers - but also understand that it is not a one size fits all, universally applicable technology that will be the de facto appropriate or optimal solution for every single function or objective within every organisation.

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

As mentioned, the finality and immutability that is securely and verifiably built into blockchain technology by network-wide Consensus mechanisms, means that all network participants can know for sure that once a transaction is executed to completion, it is verifiably owned by the recipient and cannot be reversed. There is no possibility of scamming the recipient by, for example, calling a bank to make a charge back (a problem commonly experienced in the Retail sector, whereby unscrupulous individuals have taken advantage of a charge back facility initially introduced to avoid customers being defrauded by dishonest merchants, when this is now rarer in fact that the “unscrupulous customer”).

Therefore the need for “trust” is totally removed, and both individuals and organisations can securely and “trustlessly” transact and conduct business with one another, even as strangers. The importance of having a system by which strangers can do business “trustlessly” cannot be overestimated.

The only “trust” that these actors place is in the networks, systems and protocols, all of which can be verified mathematically. By the same method, blockchain verified transactions are both mathematically and physically irreversible, and as an example with regard to Bitcoin or POW Consensus mechanisms work, this is partly a function of the dynamics by which miners use electricity to produce blocks with transactions that are securely stored and remain immutable forever.

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#1558

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    If a transaction is verified and added to the blockchain, it is there forever.
  2. How does this lead to the trustless environment that blockchain creates?
    It is a permanent public record that can be audited at any time by anyone, putting the trust in the technology instead of the people.
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#1559
  1. It means that once it’s been done then no one can change it
  2. You can make transaction wit strangers as all trust in the system/network not in any person or central authority
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#1560

1.) Once you made a decision you cannot take it back. So be careful when you transact with someone. Because you cannot take back your money
2.) It is trustless environment because you can transact with strangers and not trusting them. You cannot be scammed or cheated

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#1561

Homework on Finality

  1. What do we mean when we say that blockchain has transaction finality/immutability?
  • Blockchain has transaction finality/immutability because once a transaction has been validated and there is consensus among miner nodes, that transaction can no longer be reversed. It has been etched into that block of transactions and with each passing block becomes more and more final/immutable.
  1. How does this lead to the trustless environment that blockchain creates?
  • Blockchain finality/immutability leads to a trustless environment because each individual user can trust in the system that transactions will not be reversed. This allows them to transact with people they may not trust or complete strangers without fear of a transaction being reversed or halted.
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#1562
  1. Once transaction is finished there is no way to reverse it.
  2. By mining.
#1563

  1. It is not no way physically to reverse transaction.

  2. Anyone can track all transaction with a meth. You don’t have to trust anyone you can calculate it.

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#1564

1.- That once is done, it’s done. There is no way to remove it, delete it or get it back.
2.- To a more secure and even business environment, where everyone can be sure that you bought what you paid for. Or that a decision that you’ve taken can’t be changed or reversed.

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#1565

  1. The entry into the block cannot be changed or removed once confirmed.

  2. It removes the uncertainty in a transaction that the current system creates through potential review by person or persons. The removed need for a higher authority to adjudicate decisions. This puts responsibility on both parties to be informed and aware of the outcome of transactions making the decision final and binding.

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#1566

In blockchain, transaction finality/immutability comes from the fact that once a transaction is confirmed, it cannot be reversed or edited on that chain.
This leads to a trustless environment because merchants do not have to trust the purchaser not to do a charge back through the traditional banking system. Once the transaction has been confirmed it is final

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#1567

  1. blockchain has transaction finality/immutability because after a transaction cannot be reversed base one party both partys will have to agree for there to be a cancel of the order or refund.

  2. We can do deals with strangers from around the world and all payments are final and only can be reversed if both parties agree.

#1568
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been sent and confirmed, it is final and it cannot be reversed, changed or cancelled.
  2. How does this lead to the trustless environment that blockchain creates?
    Transactions cannot be reversed or duplicated. The blockchain cannot be
    faked or hacked in any way, thus there is security built into it and
    this leads to a trustless system since trust between transactors is not
    needed. Also, there is no creation of new funds in the blockchain system
    other then those generated by mining (proof of work).
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#1569

  1. It means that when a transaction is done, there is no way to modify it.

  2. Because people who want to do business now don’t have to trust each other. That is because on blockchain we can verify it mathematically

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