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Chain Reorg Explained: An Introduction to Chain Reorganisation in Blockchain Technology

Chain Reorg Explained: An Introduction to Chain Reorganisation in Blockchain Technology


To grasp the concept of chain reorganization, one must first understand some key fundamental concepts in blockchain technology. Among these fundamental concepts is the node operator network—a composition of specialists responsible for the secure distribution of data on a given blockchain network.

Notably, each active copy of a distributed ledger or blockchain is stored by a node, which is equally responsible for the reliability of the stored data. Moreover, nodes must keep their copies of the blockchain up to date in order to enable them to effectively authenticate transactions made on a blockchain network within which they operate.

To put it in other words, blockchain nodes are network stakeholders whose devices (i.e., validating/mining hardware) are authorized to keep track of the distributed ledger and serve as communication hubs for various network tasks. More specifically, a blockchain node’s primary task is to confirm the legality of each subsequent batch of network transactions, known as blocks.

In this regard, it is important to note that there are numerous parties involved in a network of nodes; each node in the network is allocated a unique identifier to easily distinguish one node from another.

When a node validates a blockchain transaction, a new block is generated and added to the existing chain of blocks, which act as data storage units within the network. While that may sound like a simple task, validating nodes are sometimes overwhelmed by bulk orders and are forced to place pending transactions into groups, rather than confirm them individually.

Likewise, because numerous nodes (in this case, validators) compete for the same task, especially on blockchain networks that utilize a Proof of Work (PoW) consensus algorithm, multiple blocks (usually two) may be generated simultaneously, resulting in a fork – multiple blocks containing an identical, or near-identical history of transactions.

It is at this point that a chain reorganization is effected, implying that the confirmed block is propagated to all of the nodes across the network in order to ensure its validity, while the replica block is eliminated or set aside as an “orphan block”, whereby all transactions within are marked as invalid. So how does chain reorg work from a technical angle?



Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.

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