1. What happens in the bitcoin network when two miners solve a block at the same time?
Both miners will start broadcasting their completed blocks to other nodes, and other miners will start mining on top of whichever node they have access to; eventually 6 blocks will be confirmed after one of these completed blocks first, and that chain (the longest of the two) will be accepted as the true blockchain and the unaccepted chain will send all the transactions back to the mempool.
2. What is a stale block?
A stale block is a mined block that doesnât get chosen as the âlongest chainâ and no longer is the source of truth on the blockchain. When this happens, all transactions in the stale block will be sent back to the mempool.
3. How do stale blocks occur?
Stale blocks happen when the blockchain forks from 2+ miners mining a block at the exact same time, and then whichever of the forked chains doesnât get accepted as the source of truth will become stale blocks.
4. Why is it important to wait for more than one block to be confirmed when sending or receiving a transaction?
If I understand this question correctly, waiting for more than 1 block to be confirmed (up to 6 confirmations?) will help keep the blockchain as a single chain by preventing forks from happening (when 2+ miners mine a block at the exact same time); every 10 minutes all nodes will sync with each other, and will get the longest chain of newly mined and confirmed blocks.
Thanks to @fsvolt answer to this question, I understand whatâs being asked (thank you!)
The reason why itâs important to confirm more than 1 block before notifying a buyer/seller of the sent or received transaction is to ensure that the transaction isnât part of an orphaned (or stale) block. Waiting up to 6 blocks (1 hour worth of POW) seems to be the standard for the most reliable confirmation, though itâs very rare for a transaction confirmation to take that long (in my own experience, though I have had it happen once).