I don't understand fully what a chain reorg is. Why is it significant? Because it shows insecurity of the chain?

@KingWm A re-org is when the network is out of sync with other nodes, and they get a refresh to the true state of the blockchain at a given blockheight. So its disruptive and if you have the misfortune of being a miner building on that mistaken chain, you suddenly find you didn't solve for a block - it is wiped out by the true state updating. Hope that made some sense.

@TallTim It does. I was reading about it. I think basically it boils down to lost fees, mining rewards, possible double spends and generally a lack of security. One thing I don't know is how to tell what the ramifications of this reorg are. In other words, what happened during the reorg and did anything really significant happen.

@KingWm Its a bit like having to skip back on the timeline of a video. All events that "happened" are reversed, effectively. Do that enough times and the utility of the network drops, as nodes aren't sure if they're on the "true" longest chain. If that helps 😎

@KingWm Also, this is why that have very fast confirm times are susceptible to this, because inherent latency in networks means the probability of any part of the network being out of sync will rise. You don't get anything for free, but these idiots haven't figured that out yet. Same thing with Proof-of-Stake - you have to trust nodes in that scenario - its a bad decision. "Saving Energy" really means "Not securing the network".

@TallTim I understand. I believe I understand POW, but in this past week, watching this fork, I have a better understanding of how POW provides security for the network. BTC is not based on nothing, its value is really derived from the amount of work (energy) expended to secure its ledger.

Sign in to participate in the conversation
Bitcoin Mastodon

The social network of the future: No ads, no corporate surveillance, ethical design, and decentralization! Own your data with Mastodon!