Homework on High Availability - Questions

  1. High (100%) availability is one of the major selling points of blockchain. A high availability means that the network is running at all times, so that transactions can happen even when the traditional systems are offline. Continuous runtime ensures security.

  2. The incentives for miners make it worthwhile to run the nodes nonstop. The more miners join the network the higher the security and mining difficulty becomes, if, due to any reason, a portion of the network shuts down, the difficulty drops, thus, increasing the incentive for new miners to join the network. The new miners will bring up the security again. This balance of profitability ensures a certain stability of the network. Also the global infrastructure means that regional events have only only minor influence on the network.

  1. Any global network must be available at all times.
  2. Mining and the incentives.
  1. Because global transactions are happening 365/7/24 …

  2. incentives on making money by miners !

Homework on High Availability - Answers

  1. Why is it important for blockchain networks to be high availability networks?
    Because the blockchain is a global network. The world is alive 24/7/365. People
    transact business all the time. The decentralized network must be available all
    time.

  2. What is it that enables blockchain networks to have such high availability?
    The decentralized nature of the nodes and miners means in so many different places
    and timezones there are nodes running the blockchain.

1.it is valuable to have a network that can authoritatively verify transactions 24-365 fast enough to be useful in ways I don’t think were possible prior to bitcoin.

  1. economic incentives ensure that someone will always be participating on the network as long as it is profitable to do so.

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

Because it is used globally, not only as a currency, but other useful applications are built on top of it.

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

Incentives - miners receive incentives (money) to create new blocks. If a part of the network dies, then other computers/miners will join the network. Everyone wants to make money!!!

  1. Its imperative for Blockchain networks to be high availability networks in order to be useful. Otherwise, it will fail miserably as an unreliable network.

  2. The high availability enablers are rewards to incentivise players to keep the network running.

  1. It is important for blockchain networks to be highly available to provide secure and global infrastructure for non-stop transacting and reliable access and use of the database

  2. Financial incentives for mining and securing the network make blockchain networks highly availabable. People want to make money from mining or transacting and that keeps network up and running 24/7/365

Why is it important for blockchain networks to be high availability networks?
BTC Blockchain users are centivized to maintain the network with a high availability (active 24hrs, 365days per year) to maintain the perceived value of the BTC network. If there is no perceived value - incentive - there would be no incentive to maintain the value of BTC blockchain network. So through incentives the network is maintained with a high availability rate.

What is it that enables blockchain networks to have such high availability?
As the number of blockchain users increases the level of difficulty to maintain the availability of the network increases reducing the incentive for the mining community to maintain the blockchain network. Should a potion of the network become disabled - goes off line - this reduces the the overall mining difficulty encouraging new miners to entry the network to maintain the networks availability. And so miners are incentivized to maintain the blockchain network with a high level of availability.

  1. Why is it important for blockchain networks to be high availability networks?
    Because they’re public and global and therefore need to work 24/7.
  2. What is it that enables blockchain networks to have such high availability?
    The economic incentives for mining, which adapt to the dynamic environment.
  1. Why is it important for blockchain networks to be high availability networks?

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

  3. Because in order for the network to be up and running 24/7365. To never shut down.

  4. Incentives provided for people to have their equipment available.

  1. its important because its available 24/7/365 globally
    2.incentives
  1. a high availability is needed to ensure security and a global coverage
  2. such a high availability is done by financial incentives
  1. Why is it important for blockchain networks to be high availability networks?
    It is important because the more trusted and “long running” the network is, the more trust it gets. Having a decentralized financial system open 24/7/365 without interruptions allows people to transact at any time, anywhere in the world with large amount of trust. The traditional financial institutions are subject to opening and closing on different time zones, continent with each having different holidays. The bitcoin protocol never reduces its opening hours for Christmas or what have you.

  2. What is it that enables blockchain networks to have such high availability?
    The nodes are incentivized to stay online because the block reward is awarded consistently on the network. The nodes have financial incentive to be online for as long as possible to maximize their chance of winning those rewards ($$$).

  1. Why is it important for blockchain networks to be high availability networks?
    It’s is a global network. Therefore it should be available to user everywhere regardless of time zone. The more participants the more secure the network will be.

  2. What is it that enables blockchain networks to have such high availability?
    Incentives given to the participants of the network (miners) and decentralization.

  1. Availability 24/7/365 is creating security and at same time it’s a competitive edge compared to existing financial sytems

  2. Monetary incentives

  1. Partially because the blockchain networks are global and people use it 24/7, and partially because that’s one of the things blockchain is here to solve; by decentralizing a service/solution for a problem, you decrease the risk of downtime, fraud etc. etc.
  2. Because it is distributed to many nodes, meaning that if one goes down, the rest of the network will just take over. If a network of 20 nodes lose 5 nodes (either because of the decreasing block reward or because of a electrical breakdown of a city/country/continent or anything), there will still be 15 nodes keeping the network running, while the mining reward will increase meaning the incentive to join the network as a miner will be bigger, and therefore; more nodes will join the network again (ending up at 20 etc. again).

The transactional world is 24/7/365 so networks need to be the same - stricly speaking the world is that way becasue networks are 24/7/365 (excluding solar flares :slight_smile:
Mining gives high network security and robustness - increasing or decreasing based on difficulty.

1 Para que uma blockchain seja útil ela precisa estar sempre operando, para que as pessoas e empresas que a utilizam possam tirar máximo proveito e não ter contratempos, com isso aumenta a importância da blockchain em si.

2 Incentivo Financeiro, pois pessoas ganham dinheiro com mineração e staking.

  1. It needs to be a high availability network in order to handle transactions 24/7/365 globally.

  2. Financial incentives and decentralization.