Homework on Finality - Questions

[Mauro]

@coin999

However I think there is a small probability that a block might be replaced by the miners by another block, but it is rare.

Correct. You will learn more about this later in the course.

[henri123]

• What do we mean when we say that blockchain has transaction finality/immutability?
  Once transactions have been sent, there are now ways to reverse the process.
• How does this lead to the trustless environment that blockchain creates?
  You can do business with strangers and you do not need to rely on trust. You cannot claim refunds or chargebacks, which is what happens in today’s world, where everyone is trying to take advantage of the system and reverse their transactions or claim a chargeback. With blockchain, it’s impossible for you to do these things.

[Mauro]

@Maxivation

I know that when I have the money on the blockchain it is mine. They cannot call their bank and ask for their money back. We do not have to trust each other to be honest, once it is done nobody can cheat with it.

Exactly. You can verify and be sure that you got the money.

[nielvosloo]

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

Once a transaction is confirmed or added to the blockchain, it is impossible to reverse it.

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

Because of point 1 above, both parties involved in a transaction are guaranteed that
once the transaction is confirmed, it is final, and they do not need to place any trust
that what the other party claims is true, or even the need to know the other party.

Trust in math, not people

[SoloDragonGG]

What do we mean when we say that blockchain has transaction finality/immutability?
It means blockchain transactions can’t just be removed from the blockchain by the click of a button, nor can they be reversed. Once a transaction is on the blockchain it has finality. it endures.

How does this lead to the trustless environment that blockchain creates?
With the immutability of the blockchain, less counterparty risk of chargebacks.
Don’t have to trust a 3rd party, or person I’m transacting with, I only have to trust the collective network.

[Dkhtime11]

1. It means once a transaction is made it cannot be reversed or duplicated. The transaction is final and cannot be cancelled if confirmed.

2. It creates trust since it cuts out a third party, they are quick irreversible and transactions are public.

[ludvighatle]

1. Once you send a bitcoin. It is sent. Finalized. Once you receive one. It is in your wallet.

2. This leads to a trustless environment because you can’t have any chargebacks. It’s harder to scam someone. With paypal there was a point where you sold something. You had an interested buyer. This buyer sent you money, and you then sent them the item. They would then cancel the transaction and scam you. This is impossible with bitcoin.

It is also important to note that without a third party you get higher responsibility using the technology. You sent btc to a wrong adress, noone can help you. That is your responsibility.

[TonyMorse]

Homework on Finality - Questions

1. What do we mean when we say that blockchain has transaction finality/immutability?
   A. When the transaction has happened, it has happened, there is now way back. you cannot reverse it and it will be on the blockchain forever
2. How does this lead to the trustless environment that blockchain creates?
   A. It is verified mathematically and the trust is in the network, protocol. This can also stop scamming by retailers or customers. Safer for transactions between strangers

[Hannahruta]

1. It means that it cannot be cancel, undone or reversed. It’s final and will be on the record forever.
2. The protocol says there’s is always a record for open transparency in transactions. As things can’t be reversed, the link or chain of custody/trail in unbroken.

[angiewinehart]

1. What do we mean when we say that blockchain has transaction finality/immutability?
   Once a transaction is done and confirmed it can not be changed or reversed, i.e. it stays in the Blockchain forever

2. How does this lead to the trustless environment that blockchain creates?
   As transactions are irreversible, you can do business even with strangers.
   The Blockchain Community trusts the protocol and the network.

[Mauro]

@ludvighatle

It is also important to note that without a third party you get higher responsibility using the technology. You sent btc to a wrong adress, noone can help you. That is your responsibility.

This is a great addition to this homework. Nice work.

[Stefano]

1. Means that no one can modify what is written into Blockchain. All data are stored in a tamper - proof system where immutability give high value to this technology.
2. If I want to be sure that a financial transaction has effectively take place blockchain is the way to do that, thanks to the fact that network ensure that any transaction saved on blockchain is immutable. I don’t need to trust on who is sending me money or anything else because is the network that verify this

[carmen1408]

1. That we can not reverse it.

2. Basically trusting in a decentralized network that can’t be broken or hacked.

[chommp]

When we say that blockchain has finality/immutability we also identify that transactions have no reversal. While there are fungible and non fungible assets, the transfer of them is irreversible through physics.

This leads to a trustless environment that blockchain creates through said physics. We can also trust the network by mathematical verification when dealing with strangers, which creates the trustless environment.

[zb3nder]

1. Once a transaction happend, it cant be reversed. That means finality.
2. Finality helps to secure the environment. If no one can remove somthing, this remove trust.

[marc.berchtold]

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

An approved transaction can not be changed or deleted

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

If no trust is needed, you can do business with any stranger

[Wayne]

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

Once a transaction is confirmed by the network it is final. It cannot be reversed.

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

If the blockchain says it happened, then it happened. If the blockchain does not say it happened then it didn’t happen. There is no lying. There is no cheating. The blockchain is the final arbiter of the truth. No trust of others required.

[LukeT]

• What do we mean when we say that blockchain has transaction finality/immutability?
  This means that a transaction is Not reversible. Once the transaction is made in the ledger, it can not be changed or reversed.

• How does this lead to the trustless environment that blockchain creates?
  A trustless environment is created in which strangers are able to do business with each other because it is the immutable transaction protocol can be trusted.

[sighko05]

@ivan

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

Transaction finality essentially means that once a transaction has been conducted, there is no way to reverse the transaction.

@ivan

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

This leads to a trustless environment because you can proceed to use blockchain as a form of payment and all sales will be final. If there was an error, sometimes you cannot get the money back.

[SADemo]

1. Once a transaction happens there is no way to reverse it .It is on the blockchain forever.

2. It leads to a trustless environment because every transaction can be verified and there is no way for chargebacks .