Homework on High Availability - Questions

Blockchain and Bitcoin 101
#1689

  1. The network is resilient, fault tolerant and always on. The network can scale independant of a central authority.

  2. Miners - they are financially incentivized to keep nodes in the network running.

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#1690

A blockchain network must be highly available, continuously, for it to be a distinct and innovative improvement over the centralized network model.

The blockchain network is able to create this continuous availability because it is impervious to failure in any portion of the network. This is due to the fact that the data are replicated in multiple locations, or nodes, and is never completely offline.

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#1691

  1. Blockchain networks need to inherently be highly available networks as they need to be operating continuously to secure the network. Their mechanism relies on being open

  2. All users have incentive to keep the network running therefore high availability is easy to achieve.

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#1692
  1. To keep the application going.
  2. Mining by people incentivized.
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#1693
  1. Being available 24/7 makes it usable anywhere in the world at anytime. many computers are linked together from different parts of the globe. It also incentives money makers to deal with crypto currencies since it’s a non-stoping market.

2 High availability (24/7, 365) is made possible through incentives. E.g. financial incentives let a high number of miners keep the network alive.

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#1694

Homework on High Availability - Questions

  1. Why is it important for blockchain networks to be high availability networks?

As some portions of the network die, there are plenty more available to process the transaction “because of mining.”

Mining IS HOW the network is protected, and how people are able to make money too.

“When many people are in the network-mining, it means that the security of the network is high.” Is this because all these people are providing security, and this security enables more people to get in, and provide more security, providing a virtuous circle?

  1. What is it that enables blockchain networks to have such high availability?

It is the incentivizing nature of blockchain that leads to its high availability. It is our desire to make money, and bitcoin provides the possibility of making money. It then appears to be guided “organically” by the rules of supply and demand. As miners get in, supply grows, as miners exit, supply decreases, which stimulates demand, providing greater incentive for suppliers (miners) to re-enter.

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#1695

@wafflemakr Thank you for this. And try to get the right answer out of me.

  1. It is important to verify transactions. Let’s take a smart contract for example. If both parties met the requirements… the smart contract has to be executed immediately. If the blockchain is not available then there is no automation.

  2. The people who are mining and verifying transactions will get rewarded and make more money for the input they bring to the network.

I’m sorry for such lazy answers before. This wont happen again :smiley:
Is this the correct answer? If not please feed me with feedback :smiley:

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#1696

Yes. And we want to make sure that the network can be used by anyone. From any place at any time. Especially when it comes to finance. :slight_smile:

#1697

That’s a nice way of saying it. We can look at the banks for an example. Closed on a sunday? Really? :wink:

#1698

While decentralization is very important, its the incentives that drive the network. Miners are the key. Minning needs to be decentralized of course. :slight_smile:

#1699

For now its mainly the miners. But once the block rewards stop, fess will be very important. So both the miners and the users drive the network to be highly avaliable. :smiley:

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#1700

Why do you think it is important for the bitcoin to be always online?

#1701

This happens because more miners means more total hash rate in the network. More hashrate = more energy being spent. So in order for you to change the past you would need over the half amount of energy that the network has.

#1702

More miners shouldn’t increase the supply faster. The bitcoin network regulates difficulty so that a new block is found every 10 minutes. Miner join if they see that they can get more money than they would have spent on the electricity. If price moves up, more miners will jump in and vice versa. :slight_smile:

#1703

Looks good to me. Don’t worry, you are doing great. That was a very good example with the smart contract. :muscle:

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#1704

@Mauro thx :smiley:
We will get there haha :smiley:

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#1705

Blockchains have high availability due to their decentralized structure. For a blockchain to go down all of the nodes would have to go down at once. This being the case a user can access the blockchain at any time.

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#1706

**1.**Cause everyone wants to make money. Being available 24/7(365) makes it usable anywhere in the world at anytime.
**2.**Miners are financially incentivized to keep nodes in the network running.

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#1707
  1. Why is it important for blockchain networks to be high availability networks?
    If the Blockchain requires a reference of capacity/point of difference/service it cannot be a 9-5 operation obviously and closed at the weekend! Its success must be partly due to that whenever it’s required to carry out a piece of work it is always available to carry out that function from wherever the connection to the internet is?
  2. What is it that enables blockchain networks to have such high availability?
    There is a financial ‘incentive’. a motivation of greed for the network to be operational i.e. mining and perhaps transfer fees and any other reason that makes the network profitable for its hosts, this incentive in whichever form it is received incentivises a larger number of independent computers/nodes to stay switched on rather than off. Many ON’S make a successful 24/7 365 network
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#1708

High Availability creates platforms that are operational and effective. Bitcoin’s success in high availability is due to blockchain technology through mining. By mining, people make money through verification thus protect the network and to keep it alive.

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