Q1. What happens in the bitcoin network when two miners solve a block at the same time?
A1. When two (or more) miners compete to write their block to the blockchain the network will eventually (within 10 minute period) only accept one block/blockchain fork i.e. the longest (in terms of difficulty & with the highest PoW).
Any losing/rejected blocks will be dropped and returned to the mempool.
Q2. What is a stale block?
A2. Also often referred to as orphaned blocks, stale blocks are those that are initially created but then get dropped/rejected from the blockchain - i.e. due to another competing miner’s block been accepted to the blockchain network instead.
Q3. How do stale blocks occur?
A3. Stale blocks occur when 2 or more miners create their version (fork) of the block/blockchain.
Since only one version (with the highest Pow) eventually gets accepted by the network, all others are then dropped and become what are referred to as stale blocks.
Q4. Why is it important to wait for more than one block to be confirmed when sending or receiving a transaction?
A4. It is important to wait to make sure that each version of a block/blockchain is fully propagated across and accepted by the network and that it doesn’t become dropped because of another preferred competing version/fork.