Homework on Finality - Questions

Blockchain and Bitcoin 101
#1770

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

  2. How does this lead to the trustless environment that blockchain creates? No one can hack, reverse or modify a transactions. All participants trust in the blockchain.

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#1771
  1. There is no way to refund a transaction by cancelling or claiming it didn’t happen. Every transaction is final.
  2. If every transaction is final, then there is no room for a financial scam in which someone claims they already paid for something or tries to reverse the transaction.
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#1772

[quote=“ivan, post:1, topic:8424, full:true”]
Homework on Finality - Questions

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

If we say that blockchain has transaction finality/immutability it means the transaction is set in stone and cannot be reversed.

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

As all transactions are public and cannot be reversed it stops third parties reversing transactions. (You can not get it back) Proof of work (mining) incentivise the blockchain environment to reach a consensus so trust is no longer a factor therefore creating a trestles environment.

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#1773

Hmmm I never thought of that :thinking: but what would be the incentive for China to do that? They basically already own a large portion of the mining power almost having a monopoly over the blockchain.

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#1774
  1. Transactions can’t be recalled or undone - once a transaction is added t the blockchain it will be there forever
  2. We know that something that is done, stays done! we don’t have to trust that nobody will change the past because nobody can change the past
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#1775

I cant speak to the political motivations just that the consensus rules would be met in such a senario (providing theirs is the longest chain) and that a year or more of transaction could be changed. The community would likely get a heads up due to sudden loss of hash power. I’m confident that no matter what far fetched senario that humanity would prevail and we could do a fork prior to the 51% attack and cal lthe longest chain the CCPitcoin and ignor it.

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#1776

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a blockchain transaction is made, its done upon confirmations and can never be reversible/changed by anyone.

  2. How does this lead to the trustless environment that blockchain creates?
    Because we are not trusting any individual but rather trusting the protocol/network for the transactions which makes it a trustless environment.

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#1777

Finality:
What do we mean when we say that blockchain has transaction finality/immutability?
It cannot be changed and is recorded in history.

How does this lead to the trust less environment that blockchain creates?
It becomes verified, no need to authenticate.

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#1778

  1. Once a transaction is confirm. it can’t be amended.

  2. All transaction are public forever once confirmed. can’t reverse transactions.

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#1779
  1. You can’t do any type of charge back, the transactions are final
  2. It allows you to do business with strangers without having to trust anyone
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#1780
  1. Finality/immutability means you can’t change the data once input onto the blockchain.
  2. The blockchain creates a trustless environment because it is in everyones interest to input correct information as it can be checked any time in the future and can’t be changed.
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#1781

Transparency:
It so Perfect, because all network participants share the same documentation. It can only be updated through consensus.

Security: Peer-to-Peer !! Is there a better Security!?

Improved traceability:
In a complex system chain you can trace everything back to its origin and its recorded on a blockchain. It can help to verify the authenticity of assets and prevent fraud.

Increased efficiency and speed:

By streamlining and automating a processes with blockchain, transactions can be completed faster and more efficiently. When everyone has access to the same information, it becomes easier to trust each other.

Reduced cost:

You have to trust the data on the blockchain and because everyone will have permissioned access to everything.

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#1782
  • What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction is verified it can never be changed or undone.
  • How does this lead to the trustless environment that blockchain creates?
    You can never change things afterwards or scam people, everything will be documented and administered as when both party’s decided to sign the transaction.
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#1783

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Whatever transactions you make are final. You can’t reverse it and you can’t double spend it.

  2. How does this lead to the trustless environment that blockchain creates?
    Since the blockchain record is permanent, a sender cannot fraudulently reverse a transaction or spend/record the same transaction twice.

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#1784

[quote=“ivan, post:1, topic:8424, full:true”]
Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    that once a transaction is done and aproved it cant be altered
  2. How does this lead to the trustless environment that blockchain creates?
    you dont have to trust someone sending you currency/btc you can check and see that it has been done or not.
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#1785

Homework: Finality

  1. The transactions happened. They happened in the correct way. They cannot be reversed. They’re final.
  2. Allows for strangers to engage in economic trade and know that the transaction will work. This will also make sure people want to go through with a transaction, so they will think twice and be careful when making transactions that they really want to make. Transactions are public and therefore all parties are on the same page.
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#1786

A transaction may not be reversed on the blockchain so it is final. This adds trust to the system where you can interact with anyone trustlessly.

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#1787
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It simply means that once the transaction happens and got verified by the miners , tehre is noway to undo that transaction . Its completely irreversible .
  1. How does this lead to the trustless environment that blockchain creates
    When you know that your transactions will be verified at different levels and once it gets verified , it cant be reversed , it gives a confidence to deal with strangers coz by doing so , you are trusting the technology , the protocol , not an individual where there could be the chances of fraud and manupulations .
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#1788

  1. Once a transaction is verified and is on the ledger it can not be undone and removed. It becomes a permanent part of the blockchain.

  2. Transactions can be verified; it is not a matter of trust.

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#1789
  1. What do we mean when we say that blockchain has transaction finality/immutability?

One a transaction is recorded, it cannot be reverted back nor canceled. The trust is placed in the protocol once and for all.

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

You dont need to trust people, because every transaction is immutable and transparent

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