Homework on Finality - Questions

Blockchain and Bitcoin 101
#1590

1.What do we mean when we say that blockchain has transaction finality/immutability?
It means that all transactions are final and can not be reversed.

  1. How does this lead to the trustless environment that blockchain creates?
    This leads to a Trustless enviroment because all transactions are verified, eliminating or removing trust, making possible to have a system in which strangers can work with each other.
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#1591
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    A transaction on a blockchain is not reversible. You also can not change a transactions content. Because miners already secured the block by a unique hash that is in the public blockchain accepted by the network.
  2. How does this lead to the trustless environment that blockchain creates?
    You do not have to trust an authority, instead in proof of work or proof of stake you trust the cryptographic mathematics method.
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#1592

1- You can’t reverse transactions
2-has no one can’t reverse transactions every transaction wen settled keeps settled forever.

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#1593

What do we mean when we say that blockchain has transaction finality/immutability?
My answer: Once confirmed, transactions cannot be reversed.

How does this lead to the trustless environment that blockchain creates?
My answer: If you run a business and sell a good, you can be sure that a payment you receive from a counterparty/customer (and in general from a stranger) is final and cannot be reversed.

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#1594
  1. You can only add to the blockchain you can not remove from it. which means transactions can not be reversed, the data will be stored on the database aka blockchain indefinitely. So make sure you get it correct the first time. This also stops fraud in some cases.
  2. You don’t have to trust that a customer will not call their bank after receiving a product and initiate a chargback leaving you with no product or money and a bad reputation with your merchant account. you don’t have to trust that the data you received via the blockchain is correct and unmodified as it can not be altered once submitted.
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#1595

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    The transactions made can’t be undone.
  2. How does this lead to the trustless environment that blockchain creates?
    People can’t break promises, they can’t get money back and frame you for something or whatever excuse when we are talking about trading value.
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#1596

Hi there!! Yes, so we can say that because a transaction has finality, users can be sure that transactions cannot be reversed, so we can trade or interact with third parties in a more secure way.

#1597

This way, we can interact with other parties without trusting them. If we know that a transaction in the blockchain is final, there is no need to trust the party, but trust the immutability of the protocol.

#1598
  1. one a transaction is executed it cannot be reversed / no “money-back-function”, which makes payment very safe. Only in case - if you are an Online-Seller - that you want be able to reimburse your customer (sending the purchased items back, for example) blockchain is not the solution
  2. you do not even need to know your business-partner to be trustworthy, once payment by blockchain has happened, the deal is safe.
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#1599

1.Meaning that once you press the send button, there is no coming back from it. It’s sent, and can’t come back to you if you made a mistake, want a refund etc. The transactions are now part of the blockchain. Like buying 2 pizzas with 10000 bitcoins. Once you realise how valuable these bitcoins were you wish you weren’t hungry :smiley:

  1. You don’t have to trust anyone to make a purchase for example because you can provide a TX id when you send a payment and the counterparty knows you sent the coins, and there is no way to have a chargeback or cancel the payment once is sent. The whole blockchain network can see it as well. Not just the other person. so this system makes it easy to deal with strangers.
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#1600
  1. No point of return,when a transaction is done is done.
    2.With math and physics.
#1601

Thanks for adding your note.

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#1602

Hi there!! But you can always send back the amount paid, no? Its not an actual reversal, but still.

#1603

Exactly!! I can’t image how the guy felt after a few years… :joy:

#1604

Hi there!! Can you explain why math and physics create a trustless environment?

#1605

  1. Blockchain f/i means that once a transaction is initiated, it cannot be taken back. This does not allow for users to generate “chargebacks” on the transactions they sent. BE CAREFUL & DOUBLE CHECK BEFORE SENDING

  2. Due to the work and consumption (of power) that miners use, we can expect the blocks to contain the information that we input to be true and fair and therefore trustless.

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#1606

  1. Finality is a property of the blockchain transaction such that it is not reversible once completed.

  2. That the blockchain has not central authority. Code conducts the transaction in a distributed way with consensus, coupled with the property of finality leads to a trustless environment.

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#1607

Hello Felipe;

Because Blockchain is based on math,and produced by mining which needs electricity(physics).

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#1608

Homework on Finality:

  1. Once a transaction has been confirmed it cannot be reversed and will remain unchanged over time.
  2. Both parties trust the network and the verifying math which enables transaction finality, therefore strangers can conduct business without the need for trust.
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#1609
  1. Once a transaction has happened it can not be reversed. It has permanently recorded into the network.
  2. Through mathematics as you rely less on trust and solely on verification. Since the network can verify transactions made there is no need to rely on anything else.
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