What Is a ‘Re-Org’ and How Does It Affect Finality?
A 're-org' (re-organization) occurs when the network temporarily adopts a shorter, alternative chain over the currently accepted longer chain, causing a reversal of transactions in the orphaned blocks. This directly breaks finality for the reversed transactions.
Re-orgs are more common in PoW networks but can happen in PoS if a malicious actor successfully causes a fork. They are a significant risk to immediate settlement.
Glossar
Re-Org
Restructuring ⎊ The term "Re-Org" within cryptocurrency, options trading, and financial derivatives denotes a strategic realignment of operational structures, asset allocation, or trading strategies, often prompted by shifts in market dynamics, regulatory changes, or technological advancements.
Reversal of Transactions
Reversal ⎊ htmlProcedure ⎊ htmlConsequence ⎊ Reversal of Transactions describes the explicit or implicit nullification of on-chain state changes, often following a successful chain reorganization or protocol rollback.
PoW Networks
Network ⎊ Proof-of-Work (PoW) networks are decentralized systems where participants compete to solve complex computational problems to validate transactions and add new blocks to the blockchain.