Homework on Finality - Questions

What do we mean when we say that blockchain has transaction finality/immutability?
That it is consider extremely hard (impossible if you don’t count in a 51% attack) to reverse or change a transaction on the blockchain. That is if we consider the blockchain as in Bitcoins case to be extremely solid with a lot of mining happening to secure the network. If the network is safe and healthy then a transaction can’t be changed, reversed or deleted in any way shape or form, it is written on the blockchain to stay indefinitely as long as the blockchain is existing at a minimum of one computer somewhere in the future world. Compare it to be as close to or perhaps more future proof then how we perceive the words “written in stone”.

How does this lead to the trustless environment that blockchain creates?
Instead of me needing to trust a business or a specific person I can with blockchain put my trust in the network that run on the Bitcoin protocol, I still need to trust something but that something is more verifiable, open and transparent in the Bitcoin protocol. If I believe that the network and protocol is healthy I can then transact with whoever I want that is also using the Bitcoin network and only ever needing to trust the network itself.

Me still needing to trust the Bitcoin network is not the same as the trust I put into every other business I do today, to build up my trust in the Bitcoin network I can verify everything along the way to make my own prediction with the open information I can get today from the Bitcoin blockchain. Problems arise in todays society when that trust and future prediction needs to be done on a “black box” in a company where you cant verify anything by yourself to build up the trust in a healthy manner.

The trustless environment comes from that openness where you can verify everything and that the healthy network then also can guarantee the finality/immutability of the thing that you then verifies.

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1.- It is 100% trusted, if you make a transaction it is secure and it can not be undone.
2.- There can not be a fraud, like bank cards.

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  1. What do we mean when we say that blockchain has transaction finality/immutability?
    When a transaction is made, it means the transaction cannot be reversed.
  2. How does this lead to the trustless environment that blockchain creates?
    Irreversibility means no one can manipulate transactions behind the scene, which creates eliminates the problem of trust. No need to worry about double spend!
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  1. When a transaction is verified, It cannot be reversed or deleted and will remain on the blockchain forever.
  2. While doing business/transactions with strangers, there is no need to worry about trusting them, as you’re trusting the network that relies on verifying information using mathematical protocols.
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1). It means that when a transaction is concluded all parties associated with it are confirmed in their deliverables according to the agreement. So who ever sold something got their money and whoever bought something got their product or service and the system along with the ‘acting parties attached’ like logistics providers for example and third parties can affirm that the activity took place for real.

  1. When the system can guarantee that the transaction will only finalized if everything that is agreed is executed according to that agreement and no one in the world has power to change or cancel that, then the system takes responsibility of trust between people and guarantees it to all parties associated. People don’t have to trust or depend on each other to trust something will take place, the system will do that for everyone.
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  1. When a transaction is created, it cannot be reversed, modified or removed.

  2. Participants can trust that the system cannot be manipulated and can do business confidently, knowing that once someone they are selling a product to has sent them e.g. bitcoin, that person cannot take it back (and vice versa)

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What do we mean when we say that blockchain has transaction finality/immutability?
Answer: Once a transaction completes on a blockchain, it cannot be edited or deleted, only added to by other blocks of transactions…almost like carving your name in a stone tablet - once you carve your name there, it can’t be erased. It’s permanent.

How does this lead to the trustless environment that blockchain creates?
Answer: Because transactions are listed on a public ledger than anyone can access and that ledger is copied across all nodes supporting the network, all transactions can be audited and verified instantly. There’s no need to trust that another party completed a transaction…you can simply verify whether or not they did.

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  1. That once a transaction is processed there is no reversing it. You can not pull a scam and undo it, its final.

  2. Because you do not need to worry about be scammed. You are not trusting the buyer or seller, you are trusting mathematics and a global set of blockchain protocols.

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  1. Finality/Immutability of blockchain refers to the irreversible nature of transactions in the blockchain. Nothing can be changed or reversed.
  2. An ideal trustless environment is created when all actions can be verified by anyone and cannot be changed by anyone which is what a blockchain does.
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  1. It means that there are no takebacks, charge backs, or checks that bounce. All transactions are final

  2. Since charge backs aren’t allowed and the human element of potential error or fraud is removed, it gives the user complete confidence to trade with anyone, because trust is built off the math and protocol of blockchain, not who you are trading with.

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  1. once the transaction is done it cannot be reversed

  2. one can do business with stranger and do not need to trust them

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  1. You cannot reverse a transactions. If it’s validated, it’s final.
  2. You don’t have to trust, if the other person will withdraw their payment or change the action after the agreement.
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1- It means that once a transaction has been made, it can not be reversed and stays registered in the blockchain forever.

  1. When the system incorporate a transaction in the blockchain everybody agrees that the transaction has been made and the parties involved have the security provided by the immutability of the blockchain.
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What do we mean when we say that blockchain has transaction finality/immutability?
Any valid transaction on the blockchain network is permanent and cannot be reversed. It is immutable (remains forever).

How does this lead to the trustless environment that blockchain creates?
Trust is implicit in the blockchain network. As Ivan says Dont trust, verify. Before making a transaction check that everything is fine because once we do it and go to the blockchain it is like writing on the stone (permanent)

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  • What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has occured it is final, it cannot be altered

  • How does this lead to the trustless environment that blockchain creates?
    You can do business with strangers and you dont have to worry that they will
    try to change the rules after the fact. Blocks cannot be altered on the blockchain or at
    least it cannot be done without an extremely high degree of difficulty

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  1. Finality means that transactions are not allowed to getting back, it cant be reversed.
  2. As a network wich allows conect with strangers, the finality create a not trust involved on every transaction due the permanent verification. The trust depends only of verify.
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  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been completed, it’s final. There is no way to reverse a transaction.

  2. How does this lead to the trustless environment that blockchain creates?
    There is no way for you to say that you didn’t receive the funds as it will be on a public ledger.

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When we say Blockchain transactions have immutability and finality we mean that the transactions are final and they are in no way reversible.

Because the transactions are final and immutable we can treat them as facts and thus eliminate the risks involved when one is forced to trust the other member.

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  1. When an input or change to the network occurs it is irreversible.
  2. This leads to a trustless environment because users cannot scam or cheat the systems algorithm.
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We mean that once a transaction has been added to the blockchain, it can never be removed or changed, because of the way blocks are created. Each transaction has a permanent effect on what follows, and although it might be theoretically possible to unwind a transaction, in practice this would never be the case.

Because there is such a high degree of trust in the network itself that the blockchain records what actually happens, there is no requirmrnet to trust the other party in a transaction. If, for example, they claim not to have received payment, the blockchain itself will determine whether or not that is true. So at that level, trust between trading partners or contractual parties is not required for a transaction to reach agreement.

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