- What happens in the bitcoin network when two miners solve a block at the same time?
The blockchain splits into 2 chains until a block or blocks are added to one chain making it longer. Then the block or blocks in the shorter chain are “orphaned” and the valid transactions go back to the mempool. Only the longer chain survives.
- What is a stale block?
A block that was added simultaneously to the blockchain but gets disregarded when the longer chain propagates through the network. The transactions in the stale block go back to the mempool.
- How do stale blocks occur?
When two blocks are mined simultaneously by two different miners and are added to the blockchain causing 2 blockchains to develop.
- Why is it important to wait for more than one block to be confirmed when sending or receiving a transaction?
So a steady number of blocks can be produced and propagate though the entire network reducing the occurrence of multiple chains and orphaned blocks. One blockchain must remain for one version of the truth. Usually 6 blocks need to be created after the block with the approved transactions for final confirmation.