Going back with some nerd information on blockchain technology, we are talking about BLOCKS.
Many people are unaware that there are different types of blocks in cryptocurrency and blockchain technology. So, we're breaking them down for you in … b l or c k s
Before starting, I want you to understand what the blocks are. To put it simply, many transactions take place on the blockchain, so keeping a transaction log can help users keep track of what has been paid and by whom. Transactions made during a certain period of time are recorded in a file called a block. (Investopedia)
Let's take a look at this simple analogy to further clarify things for you.
Blockchain and banking are quite similar. So, when you arrive at an ATM to withdraw your money, you receive a receipt of the transaction that has been made, serves as proof of the transaction and also gives you a confirmation. So, the receipt that the ATM will issue after you have finished withdrawing money is the "block" on a blockchain.
So there is no block, a blockchain is made up of more. Everyone has a different purpose and they have their differences. There are:
- Orphan blocks
- Stale blocks
- Uncle blocks
- Genesis blocks
To start, we have orphan blocks. They are commonly associated with bitcoin and it is the one that meets all the requirements necessary to be added to the blockchain but is in any case rejected.
A Orphan block it occurs when two miners produce a similar block at the same time. It takes time for a block to be extracted because the blocks are supposed to be built on all networks to ensure validity. Thus, while that block is propagated through the network, it is inactive. During that time another miner could produce a block at a similar time and this causes a temporary division between the network.
It is not possible to keep both blocks in such a way that the blockchain saves the one with the most proof of work. How do we know? Well, this is determined by the amount of energy that is used during the creation of the block. The greater the amount of energy, the greater the proof of work.
The block with smaller job tests is then discarded and is referred to as an "orphan block"
Stale blocks they are those that must be discarded by a miner when another block has been successfully validated by the network. Many miners are working to solve the mathematical solution and it is common that someone else can beat you. Therefore, the miner should stop working on their old block and restart the process all over again.
Uncle blocks they are similar to orphaned blocks but are commonly associated with the Ethereum protocol. Uncle blocks are still blocks that have been built and rejected by the network. However, the only small difference is that in uncle's blocks, miners are rewarded for producing an uncle block, unlike orphan blocks in which the miner gets nothing. 2,625 Ethers are rewarded.
There are two reasons why miners are rewarded for this behavior:
- It promotes greater decentralization of the mining sector. It encourages more people to mine even if their block is not included in the main chain.
- Improve overall security because more work is done
The last one we have is Genesis block. Ironically the last but not the least, is the first block in any blockchain-based protocol. It is the basic block that supports the foundation of every blockchain. The entire blockchain is built above this.
The genesis block for bitcoins contains a message from Satoshi Nakamoto, the creator, he says;
"The Times 03-Jan-2009 Chancellor on the edge of the second bailout for banks". It is an appropriate message for the Bitcoin genesis block.