Homework on Finality - Questions

Homework on Finality - Questions

  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?

  1. Once confirmations on the transactions are mad it can’t be reversed. Just like an accounting ledger all previous transaction data never changes. A new transaction is entered in the ledger for any future changes.

  2. Transactions can’t be reversed or duplicated. There is no creating of new funds other then those generated by mining.

1- it means that when a transactions has been sent it is final and you can’t get it back or cancel it if it has been confirmed.

2- By making it irreversible in which strangers can trust each other because when a block has been made it can’t be removed. Bitcoin for example, if a transaction had been made and confirmed it can’t bee cancelled or refunded.

1)once it done no one can change it
2)by mining

  1. The transaction has finality means that it cannot be reversed. Once a transaction is on the blockchain it is there forever.

  2. This leads to the trustless environment because you can do business with strangers and do not have to trust them. They cannot take the money back because there are no chargebacks.

  1. That means no double spending and no refund, each transaction is one way and cannot be cancelled neither duplicated
  2. Everybody can verify every transactions so nobody needs trust anymore

What do we mean when we say that blockchain has transaction finality/immutability?
Finality is a one way street one a transaction has been completed it can not be reversed in addition immutability means the information contained within the block can not be changed or removed only added to.

How does this lead to the trustless environment that blockchain creates?
It is up to all parties to take responsibility for the terms they agree as they data can not be reversed or changed. It is the non compromising rules of the network that allow money to be sent without knowing or having to trust the other party as the network provides the consensus.

Blockchain transactions are permanent. Once a transaction is completed it is recorded and stored permanently on the blockchain. Nobody can change it or delete it.

We do not need a “trusted” third party because blockchain verifies the transactions and blocks itself.

It means that when transaction is there, it is there which means you can not change or remove.

  1. We mean there is no mechanism to trigger chargebacks or reverse transactions. The closest thing would be the recipient of a transaction manually initiating a new transaction with the original sender to return the same amount received. Essentially, transactions are set in (viking) stone. They cannot be undone once confirmed.

  2. There is no need to worry about one party reversing a transaction after services or products have been rendered. There is no third party to trick in your favor. Energy expended cannot be unmade.

I appreciate any feedback or corrections on these.

Finality

  1. Once you have sent a transaction it is FINAL! It cannot be reversed. If a block is mined, and has cost electricity and the reward has been paid to a miner then you cannot operate a system that you can charge back (if it is Bitcoin). If it is data or information that is being stored then being immutable means that it cannot be changed, and this is very important.

  2. The fact that your transaction cannot be either charged back or changed in any way means that you can transact with strangers or anyone in the world and have faith and trust in the system. The Blockchain creates this trustless system for everyone.

  1. What do we mean when we say that blockchain has transaction finality/immutability?
    A transaction can’t be changed or removed. Altough to realize it it will cost you a lot of energy.

  2. How does this lead to the trustless environment that blockchain creates?
    Because its impossible to spend so much enery for one party to change things in the blockchain.

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

We mean that each transaction is final, it cannot be removed, erased or cancelled. It is also immutable, it cannot be altered or modified.

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

For example, it allows us to do business with strangers. We don’t need to trust in a person or a business partner. Transactions are final and immutable and we can allow this to happen because we trust in the validity of the mathematics behind them.

  1. Transactions cannot be reversed.
  2. Immutable nature of ledger ensures no manipulation of transactions meaning more trust.

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

When the transaction is done, is done. There is no way back, can’t reverse.

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

We don’t need to trust each other, especially for strangers. There is no way for one party changes or cancels the transaction, or fraud. Every part can be verified by network.

  1. Transaction Finality /Immutability of Blockchain means that transactions once committed can never be changed, modified or deleted.

  2. Because of Finality /Immutability features, Blockchain creates the trustless environment by default. This allows you to perform transactions that can’t be reversed or changed thus eliminating chances of frauds. Thus, there is no need to trust anyone as trust has already been created along with Blockchain.

  1. It means that once a transaction has completed it cannot be rolled back or reverted. It is permanent and cannot be altered.

  2. This leads directly to it as nothing can be rolled back or changed, once it is verified it is permanent.

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

When a transaction takes place on a blockchain it cannot be undone / reversed or changed. The transactionis verified and remains forever permanent within the block.

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

Trustlessness is achieved as all transactions can be phyiscally verified and arise to dispute cannot happen.

  1. When we say that blockchain has transaction finality/immutability it means that once a transaction has happened there is no way of reverting it back (except from performing a hard fork in the blockchain).

  2. This leads to a trustless environment because all users know that transactions cannot be reversed. Supply is based on mining and Consensus algorithm.