Despite its great potential, blockchain technology is currently hampered by a number of challenges. For example, block conflicts are now the most common type of blockchain problem, indicating that a blockchain can fork if two blocks are recorded almost simultaneously.
Current conflict resolution techniques are based on LCR(Longest chain Rule), which states that the longest chain should be considered valid if more than one block is available. Each node adheres to the protocol limit of trying to extend only branches they know about. This rule causes some transactions on the wrong side of the fork to be delayed, leading to blockchain reorganization as transactions on the wrong side of the fork are restructured into new blocks.
On May 25, the Ethereum Beacon chain underwent a seven-piece reorganization and was exposed to a high-level security risk known as chain organization. Seven-block reorganization means that seven blocks of transactions are added to the final discarded fork before the network discovers that it is not a canonical chain. Blockchain restructuring occurs when some node operators are faster than others. In this case, the faster nodes will not be able to agree on which block should be processed first, and they will continue to add blocks to the longer blockchain, letting the shorter chain create each next block.
Blockchain restructuring raises node costs, reduces user experience, and makes DeFi transactions vulnerable to 51% threats. When chain reorganization occurs, state changes can incur memory and disk costs due to the need to move to a new fork. Due to the possibility of restructuring, users of XM FOREIGN Exchange XMFXTrading.com may have to wait longer to treat transactions involving them as confirmed. As a result, companies such as exchanges may have to delay taking deposits for longer.
Due to chain restructuring, DeFi trades have an increased chance of failure due to human error, resulting in lower trading profits than expected. The reorganization of the blockchain also makes 51% more vulnerable, meaning attackers don't have to defeat all legitimate miners; Instead, they must beat the percentage of honest miners who are not reorganized. If there is regular regrouping on the blockchain, the attacker's job becomes considerably easier.