1. What happens in the bitcoin network when two miners solve a block at the same time?
A conflict happens because the Bitcoin Network now has two different versions of truth spreading around the nodes. Both proposed blocks are valid, but only one can be appended. The blocks in the longest chain will be valid and the others will be discarded (orphan or stale).
2. What is a stale block?
Stale Blocks are blocks that are no longer part of the current best blockchain because they were overridden by a longer chain.
3. How do stale blocks occur?
When a Bitcoin miner successfully finds a valid next block to append, that block gets propagated to the entire network, but first reaches the nodes that are geographically closest to where that block was discovered. It doesnât take long for every Bitcoin node on the network to receive the propagated block. However, if two miners located on polar opposite ends of the globe successfully find a valid next block at the same time, we have a conflict on the network.
4. Why is it important to wait for more than one block to be confirmed when sending or receiving a transaction?
To avoid stale blocks. However, after one version of truth is overridden, the transactions in the stale blocks are returned to the mempool to be picked up in a future block. Stale blocks are usually not a serious threat to the network but they do leave room for fraud and attacks on the network.