Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    Consensus determines the truth in that the parties have an agreement or verification of transactions in blockchain.
  2. How is this different from how truth is determined in a central database?
    All decisions about information are being created by agreement or consensus of all parties involved. Verification is done through validation or global consensus in every transaction in blockchain.
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  1. It means that you don’t have to rely on the word of a single individual. You have multiple individuals who can tell you whether or not something is true. If they don’t agreed, you know what you’ve been told is not true
  2. In a central database, you’re basically getting all of your info from a single entity. This means there’s no one to keep them accountable or to fact-check them
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  1. What does it mean when we say that in blockchain, consensus determine the truth? it means that the truth is determined collectively by all participants of the network thus if a participant tries to lie or manipulate the block or transaction the network will reject it and they will not get the reward.

  2. How is this different from how truth is determined in a central database? in a central database a centralized entity determines and controls the database entries allowing them total control over what the “truth” is, while in the blockchain consensus ensures the accountability of the participants.

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[quote=“ivan, post:1, topic:8425”]

  • What does it mean when we say that in blockchain, consensus determine the truth?

All the peers of the Blockchain network reach a common agreement about the present state of the distributed ledger. In this way It achieve reliability in the Blockchain network and establish trust between unknown peers in a distributed computing environment. Every new block that is added to the Blockchain is the one and only version of the truth that is agreed upon by all the nodes in the Blockchain.

  • How is this different from how truth is determined in a central database?
    database can be manipulated, destroy or corrupt
    In a central database its difficult to verify every single transaction, database can be manipulated, destroy or corrupted.
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1.Consensus determines truth as a each party is incentivized to be honest and transparent. blockchain systems achieve the necessary agreement on a single data value or a single state of the network among distributed processes or multi-agent systems.

  1. With central databases, the database owner / controlling party can corrupt the data. Maybe there is no incentive to be to truthful / ethical
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All of that is true but you haven’t mentioned why consensus determines the truth. A consensus is an agreement between all the nodes that something is true. In bitcoin, proof of work (POW) is a way to reach consensus. All other nodes can ensure there has been work put in creating a block. They will gladly accept any block that has a low enough hash, based on the current difficulty.

https://forumtest.ivanontech.com/t/homework-on-provenance-questions/8423

True. A backup of the documentation, could still be faked. Bitcoin = Don’t trust, verify. :wink:

Great answer! Keep it up! :smiley:

Yes. Even if they tried to make a fraudulent transaction other nodes would decline it. In the mean time they would waste electricity and gain nothing.

  1. that consensus needs to be reached between all parties (nodes) of the network, all parties needs to give a same information to verify whether what one subject is claiming is valid to determine the truth - very secure and trustless.

  2. in central database, the truth is determined by centralised entity/database owner or manager, cannot be verified by others and has to be trusted

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What about the consensus in the blockchain? How does it determine the truth?

What does it mean when we say that in blockchain, consensus determines the truth?
Answer: All computers/parties must agree with each other.

How is this different from how truth is determined in a central database?
Answer: A single source of data can be open to corruption.

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  1. All the participants are incentivized by network to be honest. This allows the network to create the consensus of all participants, where everyone helps to determine the truth.
  2. In central database everyone is forced to trust the central authority, but in the decentralized database all the participants are incentivized by network to be honest and in consensus with everyone else. Who is not honest, cannot be part of the consensus/network.
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  1. What does it mean when we say that in blockchain, consensus determine the truth?

It means multiple parties make decisions and make it difficult to cheat or make mistakes.

  1. How is this different from how truth is determined in a central database?

Central database verify the truth by a single party decision.

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  1. In blockchain, a network of computers use algorithms to verify a transaction. They must then come to an agreement as to whether or not the transaction can be added to the blockchain. If a consensus is reached, the transaction is then accepted and confirmed.

  2. This is different from how truth is determined in a central database because there isn’t a verification system in a central database to confirm or prove that the information provided is true.

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1.It means that several parties take the decision together. There’s no way to add any fake information to the supply network.
2. in a concensus truth you don’t need to trust the other party as it is in a centralised database.
consensus works by incentive on the blockchain and things must work smoothly.

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1.) A mutual agreement between nodes and databases to approve transactions allows for the inability to commit fraud/corrupt data.

2.) A centralized database relies on a focal authority/individual to govern transaction history and approve what is perceived as the truth, whereas a decentralized database has no soul governing power and is unable to altered, only added to if all nodes are in agreeance.

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  1. Consensus means that a transaction is agreed upon by the network, there is a financial incentive to play by the rules agreed upon by the participants and to tell the truth, honesty=financial gain while dishonest transactions will be rejected.

  2. In a centralized database truth is determined by a centralized authority leaving room for dishonesty, manipulation and corruption.

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  1. When a transaction is entered into the ledger it is proof that all the nodes in the network has decided that that transaction is good, or true.
  2. In a central database truth is determined solely by 1 central entity based on that entity’s criteria. It doesn’t have to be agreed upon by any other entity.
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  1. The network community has to decide, if a transaction makes sense or not. When they come to an agreement, the transaction is accepted. If members are not playing by the rules they will be punished (lose money). Therefor members are highly incentivated to do the right choise.
  2. Truth is determined by people, who have access to the database. Those people have to be trusted.
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