Homework on Finality - Questions

Blockchain and Bitcoin 101
#161
  • What do we mean when we say that blockchain has transaction finality/immutability?
    • Once a transaction has happened, it is history.
  • How does this lead to the trustless environment that blockchain creates?
    • The blockchain transactions are permanent and cannot be changed.
    • The trustless environment exists because one cannot be scammed.
    • There can be no chargebacks!
    • The transaction is verified with math and protocol, making it trustless.
    • No third party is required (other than the mathematically trustless network).
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#162

  1. After the transaction has been verified, it will be included in a block and that transaction will remain on the blockchain forever. It cannot be reversed, changed or deleted.

  2. There is no need to trust any one person or organization with your transaction. You only need to trust the network, and after your transaction is verified by that network, it cannot be changed or deleted by anyone - and you do not need to trust anyone with it.

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#163

1- We mean that we cannot remove data (a process cannot be reversed), for example a transaction from blockchain, it is there and will stay for ever.
2- Because we can verifify data through math. And because of psysics, blocks are fused together using electricity, mining blocks. So ‘no way’ to reverse it.

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#164

1.it means that after transaction(or other information) got confirmed by the network there is no way to cancel,change or reverse it.
2.because u can not cheat, create fake transactions etc and everything is confirmed by the network based on math - you don`t need trust anymore.

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#166

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

Businesses – small or large – face issues with finality of payments quite often. A consumer can attempt to reverse his payment made via VISA or PayPal. In these scenarios, settlement finality conflicts are handled by the middleman.

However, middleman-solutions are always going to be a point-of-weakness for finality. What if people in key positions are bribed? What if centralized servers are hacked? In a centralised solution, there’s always a chance that finality is reverted. Each intermediary will pose a risk point.

Comparatively, a blockchain uses no intermediary. It achieves finality via it’s consensus method. Notable consensus methods are Proof Of Work and Proof of Stake. Both of which eliminate several weaknesses of centralised systems.

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

The blockchain removes the need for peers on the network to trust each other because it has inherent protections against fraud. Transactions cannot be made and reversed later on when the network discovers that there are not adequate funds to complete them. Because the network knows the balance of each peer in advance, unsubstantiated transactions will not be processed or authorized.

As a result, blockchains are “trustless.” Participants need to have trust in the blockchain and its immutability, but trust does not necessarily need to exist between peers themselves in order for the network to function.

#167
  1. Transactions are irreversible. 2. Public transactions that can’t be reversed.
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#168
  1. What do we mean when we say that blockchain has transaction finality/immutability? Transactions once verified are final and cannot be reversed or removed from the ledger.
  2. How does this lead to the trustless environment that blockchain creates? This creates a trustless environment where once transactions are verified they cannot be changed, and can be considered authentic. This implied that in business when a merchant gets paid for goods or services they can deliver with high confidence that the customer cannot commit fraud by reversing the transaction. The customer has a verifiable record of payment in case the merchant fails to deliver as promised
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#169

Finality / immutability because when the block is confirmed after a transaction it is irreversible.
Trustees because every transaction is mathematically verifiable.

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#170

1- That is not possible to charge back. It’s physically impossible. The encryption system connects a transaction to the preceding and subsequent ones. So once the transaction has been made there is no way to remove or change it.

2- Truth rests on the network itself and the mathematical protocol that requires this finality.

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#171
  1. Once the transaction hits the blockchain stone – it is indelible/permanent, No way to retrieve and cancel.
  2. It takes the human out of the equation, really. No amount of cajoling/emotion/emailing/nagging/begging can reverse the transaction.
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#172
  • What do we mean when we say that blockchain has transaction finality/immutability?
  • How does this lead to the trustless environment that blockchain creates?

When a transaction has happend it has happend, and can not be reversed or changed.

You can cut out the middle man like a bank. But you will also open up for easier ways to scam. This requires a huge deal of trust and knowledge by the users. i don’t quit understand how this will create more trust and a massive use.

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#173
  1. Informaton cannot be removed from DL, including transactions so these cannot be undone.
  2. No scams with chargebacks are possible.
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#174

  1. The transactions on the blockchain are immutable in that they cannot be changed later. There is no way to “take back” a transaction once it has been confirmed on the blockchain. This means that there is no such thing as a “chargeback”.

  2. You don’t have to trust the person that you are transacting with. Consensus in the network will determine if the transaction is valid or not.

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#175

1-Once transaction is sent, it cannot be reversed
2-Miners use electricity and create blocks where transactions cannot change.
We can trust a network not a person. Can complete transactions with strangers.

#176

  1. Once the transaction has happened it will always be on record and cannot be reversed or edited. The transaction are final and there is no way to charge back.

  2. A trustless system does not require any trust from the buyer or seller. Its finality allows business to be conducted because we all trust the protocol since there is no way reverse.

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#177

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    It means that once a transactions is confirmed it will stay there permanently and it cannot be modified in any way or reversed.

  2. How does this lead to the trustless environment that blockchain creates?
    As an example a vendor can know after a confirmation the customer cannot then reverse the transaction after already receiving the item. This is unlike other centralized payment methods that may allow customers to lie about not receiving a product and get their money back when in fact they should not have.

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#178
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    When the transaction is send you can’t change the decision and the transaction is recorded on the blockchain.
  2. How does this lead to the trustless environment that blockchain creates?
    Senders and receivers of the transaction have a environment that can be trustless because the transaction is final and immutable because of the protocol.
#179

1: When a transaction has happend, there is no way to reverse the transaction.
2: because we can prove mathematically that once a transaction has been executed there is no physical way to reverse the transaction. This is possible because everything is constantly monitored by many computers that have to reach a consensus on the transaction.

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#180

Homework on Finality - Questions

  1. What do we mean when we say that blockchain has transaction finality/immutability? Once the block is confirmed and verified it cannot be revoked.
  2. How does this lead to the trustless environment that blockchain creates? If you operate a business where you don’t want chargebacks, they are eliminated and payments are final and verified on the blockchain.
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#181

1, once a transaction is complete it cannot be reversed, it is final.

2, It eliminates counter party risk which is part of the legacy system and a weakness. All parties can rely on the verification process of the distributed ledger once the transaction has been validated or confirmed.

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