What Is an ‘Orphaned Block’ in Blockchain Technology?
An orphaned block, also known as a stale block, is a valid block that is not included in the main blockchain because another miner found a different valid block at nearly the same time, and the network accepted the other block first. This happens when two miners solve the block puzzle almost simultaneously.
The transactions in the orphaned block are returned to the mempool, and the miner who found it loses the block reward, though they may keep the transaction fees.
Glossar
Valid Block
Confirmation ⎊ A valid block, within the context of cryptocurrency and its derivative markets, signifies a successfully propagated and cryptographically secured unit of transaction data appended to a blockchain.
Block Puzzle
Computation ⎊ The Block Puzzle is the computational challenge inherent in the Proof-of-Work consensus mechanism, requiring miners to expend significant processing power to find a valid block hash.
Network Latency
Propagation ⎊ Network latency, within cryptocurrency, options trading, and financial derivatives, represents the time delay for data transmission across a network, critically impacting trade execution speeds and arbitrage opportunities.
Orphaned Block
Fork ⎊ An Orphaned Block is the direct result of a temporary chain fork, occurring when two or more miners or validators simultaneously broadcast valid blocks to the network.