Homework on Finality - Questions

Blockchain and Bitcoin 101
#81
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    • Finality in the blockchain means there is a high degree of trust by the network users that a transaction / data entry into the blockchain cannot be easily changed without alerting users of the network of the change. Example of a potential reversal of finality would be a 51% attack on the network.
    • Finality is also suggested by the idea that changing of the ledger by a single bad actor is virtually impossible because of the difficulty in cryptography, additionally and aforementioned is the fact that if a large network change was to be attempted everyone would be aware of it, this is just as good a reason not to even attempt it as it not being possible at all.
    • Immutability suggests the idea that no censorship of the blockchain or data structure is possible since it’s decentralized and scattered throughout the interwebs on various nodes, no central authority censorship.
  2. How does this lead to the trustless environment that blockchain creates?
    • With the prospect of immutability and finality there will be established a deep trust between the user and the network. Unlike our financial system where value is created out of thin air and loaned at interest to the rest of the network. When that network eventually breaks down due to bad actor influences such as greed, monopolization, mismanagement and or due to censorship of users of the network then trust is broken. The concepts of immutability and finality are bedrocks of trust in any system, network, relationship, etc.
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#82

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction has been made, there is no way to change it or reverse it. The record is final.

  2. How does this lead to the trustless environment that blockchain creates?
    You no longer need to trust the other party to confirm that the transaction has been processed as mutually agreed upon, the network confirms that for you.

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#83
  1. Network consensus makes a blockchain transaction immutable.
    2.The blockchain acts as an impartial trusted third party.
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#84
  1. It means that when a transaction has been done in blockchain, it is FINAL! It has happened, there is no way to get it back, it cannot be reversed and it will be in the blockchain forever.
  2. It is TRUSTLESS because you can VERIFY it and rather than trusting a person, we trust math and protocol. This allows us with the ability to comfortably do business with strangers.
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#85

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Transactions can not be reversed or deleted.

  2. How does this lead to the trustless environment that blockchain creates?
    Trust is placed in the protocol/math. It does not lie or defraud someone. Strangers can do business with out worrying about the human condition that can come into play during business transactions. i.e. refusal to pay for goods or services delivered.

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#86

  1. Once the transaction is in the blockchain, there is no way to reverse it. Changing any information in older block will change the digital signature(s) of subsequent block(s) and invalidating all of them. Therefore, once written to blockchain, it is immutable.

  2. There is no way to reverse the history, once agreed by majority, that will be the truth. The blockchain can be verified independently and there is no third party or central authority involved, therefore it is a trustless system.

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#87

Block chain transactions are permanent and can never be changed they can be added onto
but never changed. Which makes it transparent and trackable.

Knowing that each transaction is a permanent record i can be assured that i can do business with anyone
since the transaction can never be changed.

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#88
  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once a transaction is finalized it is final and inmutable as if written in stone. There are no cancellations and refunds as this is permanently recorded in the blockchain. There may be rare exceptions when two parties know each other. They may make a new transaction as the previous one is already recorded and cannot be erased or annulled. Normally this does not occur.
  2. How does this lead to the trustless environment that blockchain creates?
    This system of permanence, finality and inmutability enables perfectly unknown persons to perform a transaction without having to know or trust each other. As the only trustworthy component in this operation is the protocol.
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#89
  1. What do we mean when we say that blockchain has transaction finality/immutability?
  2. How does this lead to the trustless environment that blockchain creates?

When we say that blockchain has transaction finality/immutability, we mean that transactions are final and cannot be reversed.

This leads to a trustless environment because the parties on each side of a transaction cannot back out of a deal once it is finalized.

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#90

  1. What do we mean when we say that the blockchain has transaction finality/immutability?
    There is no way to reverse a transaction once it has happened.

  2. How does this lead to the trustless environment that blockchain creates?
    There is no trust put in the counterparty. The protocol dictates the terms and are immutable.

#91

  1. Once a transaction happens, its final. The system is trustless and can be verified mathematically, on the block chain. Once its on the blockchain, it cannot be changed.

  2. Corporations and merchants are plagued with fraud and dishonesty. The blockchain keeps things honest.

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#92
  1. There is no way to reverse a transaction.
  2. We trust the network, not a third part.
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#93

  1. Once a transaction has been made, there is no way to reverse the transaction.

  2. Strangers can do business with each other without needing to worry about validating each other since the network itself is immutable. Nothing can be reversed or modified so all parties must uphold their end of the deal.

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#94

1.What do we mean when we say that blockchain has transaction finality/immutability?
Once a transaction is validated, it cannot be changed or reversed.

2.How does this lead to the trustless environment that blockchain creates?
Because transactions cannot be corrupted or rolled back, there is no need for trust between the different parties.

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#95

  1. Once a transaction is completed it cannot be altered or reversed. It is on the blockchain forever.

  2. The blockchain acts as an impartial 3rd party.

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#96

1- it means that once a transaction is made and confirmed it can not be unmade or refunded

2- for the cryptocurrency part:
by making it easy to verify that a transaction has been made, in which if you make the transaction i can verify that i have fully received the transaction and the it can’t be sent back by the sender.

And for the data and information part:
by making it very hard to edit or remove information once it has been added to the blockchain.

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#97
  1. It means that once a transaction is completed it cannot be reversed. You can’t call your financial institution to tell them the transaction was an error or mistake or whatever to receive a charge back.
  2. Simply because transactions are reversible, you have to verify well before you carry out the transaction, knowing that there will never be a chargeback.
#98

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    Once data is written to the blockchain it cannot be deleted or amended. The information contained in the block can be changed, but this would lead to the creation of a new block, thus providing auditability. All transactions must be verified and validated by consensus.

  2. How does this lead to the trustless environment that blockchain creates?
    Blockchain users are reassured that all transactions are validated by code and verified by consensus. All records are recorded permanently and are available to be audited as required.

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#99

  1. One done it can’t be reversed. It will always be on the blockchain.

  2. By the use of mining incentives to confirm all transactions and not a 3rd party.

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#100

1 the transaction cannot be cancelled or charged back
2 one way action that can be done with anyone or anything

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