Finality means information can be added, but never deleted. Immutability, the newer information has a later date of entry into the blockchain and doesn’t change the past information.
Such an information system creates an environment where trust has no place, therefore, trust is abandoned.
#1. once a transaction happend, you cant reverse it.
#2. instead of trusting in strangers. you can trust in finality
1. What do we mean when we say that blockchain has transaction finality/immutability?
2. How does this lead to the trustless environment that blockchain creates?
What do we mean when we say that blockchain has transaction finality/immutability?
Ans : Once the transaction is made, there is no way to reverse it.
How does this lead to the trustless environment that blockchain creates?
Ans : No manipulation /editing is allowed. this lead to turstless environment of blockchain creates.
Transactions on the blockchain cannot be reversed once they are confirmed.
This leads to a trustless environment as charge backs are impossible.
Transactions are recorded in database forever, cannot be altered and are irreversible.
Neither of parties to peer-to-peer blockchain transaction can alter, cancel, chargeback, reverse, claim they never received payment, etc. Since these various possibilities don’t exist, nothing gives rise to the need for a third party oversight and hence no need to trust a third party entity in some form.
The transaction once written to a block which is accepted to the blockchain within a certain number of blocks can be considered as good as permanent. The more time that passes the more permanent the transaction although all the while given a great enough coersion of a large enough qty of miners by say a state actor (like china) a second chain could be running in secret which later could broadcast to the network overwriting all blocks subsequent to when it started the secret chain of mining. So in theory blockchain is not permanent in the instance of a bad actor with a great enough incentive and access to resources. The more distributed a blockchain is between jurisdictions the less likely that one or several state actors will be able to collude to bring down trust in such netowrks.
The trustlessness is in relation to no longer know or trust the party sending value via the blockchain as chargebacks or double spends are very unlikely especially if waiting for several confirmations of the transaction (several minutes to several hours depending on multiple variables).
What do we mean when we say that blockchain has transaction finality/immutability?
what is done is done , no reversal
How does this lead to the trustless environment that blockchain creates?
finality brings trustless because all records in the ledger won’t ever change
1 What do we mean when we say that blockchain has transaction finality/immutability?
All transaction in the blockchain is final and immutable. You can’t change what is stored in the blocks forever, it is final. You can look but you can’t touch.
2 How does this lead to the trustless environment that blockchain creates?
You don’t need to trust the other parties you are transacting with. You don’t need third party as well. The consensus in the network gives you the assurance that the agreed information or value will be transferred from the sender to the recipient no more, no less.
All transactions are final. In order for money to go back to the original destination another transaction must be agreed on and made.
There are no chances of chargebacks occurring. There is no third party holding funds. All parties involved can see how the transaction played out. Everything is verified mathematically making trust between strangers unnecessary.
- What do we mean when we say that blockchain has transaction finality/immutability?
- How does this lead to the trustless environment that blockchain creates?
Transaction finality and immutability means that the transaction cannot be undone or altered after it is confirmed by the network. Payments made in cash can be reversed by physically taking the cash back or payments made by card/check can be reversed by the bank. This is impossible with blockchain.
When a transaction is broadcast one can be sure that it will not be censored, reversed or altered. Therefore, there is nothing to trust.
When we say that the blockchain has finality we mean that transactions cannot be undone under any circumstances.
This leads to a trustless environment because customers cannot scam merchants by giving them money and saying to a bank that they did not do it. In other words it is a direct transaction that is secure and that cannot be compromised or deduced by any party affiliated.
Blockchain transaction finality/immutability refers to the fact that once a transaction is executed, there’s no unwinding it. It’s as if written in stone.
Finality/Immutability leads to further trustlessness by preventing bad actors from later calling for a charge-back or otherwise unilaterally unwinding a transaction. There is no middle man between the parties which prevents a great deal of uncertainty.
No one can go back on their transactions
1 finality means that it is final there is no changing it
2 if anyone tries to change anything it changes the address which can be found easily by backtracking to the changed address (it is an obvious change) because this one is changed the one after which the miner rely on for their puzzle will also be wrong and so on up the chain the original one can be changed back which will change back the ones after one