What is Chain Reorganization? Read the Explanation Here

When a block in the blockchain is replaced by another version of the block, that is what is called Chain Reorganization. Check out the explanation here.

Understanding what Chain Reorganization is

Chain Reorganization is an event that occurs in a blockchain network when a number of transaction blocks are replaced by other versions of those blocks. 

Chain reorganization often occurs when two or more miners complete the same blocks at almost the same time. 

As a result, the network must select chains that will be considered valid, and blocks that do not belong to the selected chain will undergo reorganization or be ignored.

Why Chain Reorganization Happens

Miner Competition Solutions

Miners on a blockchain network compete to complete blocks of transactions and earn block rewards. 

When two or more miners complete a block almost simultaneously, competition occurs to determine the valid chain.

Block Completion Time

The time it takes to propagate a block across the network can cause some parts of the network to see different versions of the block simultaneously. 

Thus resulting in a situation where two chains compete to be recognized as the primary chain.

Network Consensus

In a blockchain network, consensus is required to determine a valid chain. 

If multiple miners produce blocks nearly simultaneously, the network consensus must resolve the conflict and select the chain that will be considered valid.

Contoh Chain Reorganization

For example, in the Bitcoin network , two miners complete their blocks simultaneously, creating two different chains. 

Each part of the network may see one of the chains before the others. 

When the next miner completes a block, the network consensus will decide which chain is considered valid.

Example of the chain reorganization process in the Bitcoin network

• Miner A completes Block 1000.
• Miner B also completed Block 1000 almost simultaneously.
• Both blocks are propagated on the network.
• Some parts of the network see Block A first, while others see Block B first.
• Miner C completes Block 1001, and network consensus selects a valid chain. Blocks that are not included in the selected chain undergo reorganization.

Chain reorganization is not a common occurrence, but can occur under certain network conditions. 

Because chain reorganization is part of the consensus system in various blockchains and ensures network stability and security in situations of intense competition.

Read Also:

What is Block Producer?

What are Block Rewards?

What is a Distributed Denial of Service (DDoS) Attack?

What is Distributed Consensus?

What is a Bitcoin ATM?

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