A rare event caught the attention of the Bitcoin community on Wednesday when two “orphaned” blocks were created and dumped on the blockchain of the world’s largest cryptocurrency.
Both blocks were mined by F2Pool and Slush in blocks 656,477 and 656,478. At the same time, the same blocks were opened by two other mining companies, BTC.com and Binance, resulting in a chain split and duplicate blocks being discarded without prejudice to transactions.According to BitMEX Research on Twitter:
A chain gap of length two occurred on Bitcoin today. The diagram below shows the miners involved, block timestamps, and the time our node first saw the blocks
* No double spending was found
* This was not a consensus problem (all blocks were valid) https://t.co/Z2zckMNcWS pic.twitter.com/4gz7f69TtT
– BitMEX research (@BitMEXResearch) November 11, 2020
However, according to BitMEX, there were no losses from the transactions. But, How can Bitcoin mining generate and discard an “orphan” block?
How does an “orphan” ban come about?
In the Bitcoin blockchain, each block of a blockchain is made up of multiple transactions collected by the miners in the queue. Orphaned blocks are the most common on the Bitcoin network and are usually rejected when two miners are producing a very tight block at the same time. Since there can only be one block at the end, the winner will be determined on the basis of the block with the most work records.
There are also instances when hackers attempt to create orphaned blocks to reverse transactions and steal money.
However, if an orphan block occurs on the blockchain and the transactions go to the end of the queue, it is better to wait until the transfer is complete or the cryptocurrencies are restored. When such a block is identified, the transactions are returned to the queue and placed in a later block.
However, creating orphaned blocks is common in blockchain technology The creation of two orphan blocks in a row, as happened this Wednesday, is much less common. BitMEX Research also found two orphaned blocks in late September, and the event also took place in July and August.
According to experts, although they are not uncommon, they can have an impact on mining. S.According to a spokesperson for BitMEX Research, orphaned blocks result in “wasted work, less proof of work, which makes the network cheaper to attack”.
That is also what it means The orphan blocks “can benefit large mining companies by increasing the pressure of centralization.”