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Mastering Bitcoin

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Mastering Bitcoin ( mastering-bitcoin )

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Blockchain Forks Because the blockchain is a decentralized data structure, different copies of it are not always consistent. Blocks may arrive at different nodes at different times, causing the nodes to have different perspectives of the blockchain. To resolve this, each node always selects and attempts to extend the chain of blocks that represents the most Proof-of- Work, also known as the longest chain or greatest cumulative difficulty chain. By sum‐ ming the difficulty recorded in each block in a chain, a node can calculate the total amount of Proof-of-Work that has been expended to create that chain. As long as all nodes select the longest cumulative difficulty chain, the global bitcoin network even‐ tually converges to a consistent state. Forks occur as temporary inconsistencies between versions of the blockchain, which are resolved by eventual re-convergence as more blocks are added to one of the forks. In the next few diagrams, we follow the progress of a “fork” event across the network. The diagram is a simplified representation of bitcoin as a global network. In reality, the bitcoin network’s topology is not organized geographically. Rather, it forms a mesh network of interconnected nodes, which may be located very far from each other geo‐ graphically. The representation of a geographic topology is a simplification used for the purposes of illustrating a fork. In the real bitcoin network, the “distance” between nodes is measured in “hops” from node to node, not in terms of their physical location. For illustration purposes, different blocks are shown as different colors, spreading across the network and coloring the connections they traverse. In the first diagram below, the network has a unified perspective of the blockchain, with the blue block as the tip of the main chain. Figure 8-2. Visualization of a blockchain fork event - Before the Fork 204 | Chapter 8: Mining and Consensus

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