Overview
A reorganization is a chain reorganization where a competing branch replaces the current canonical chain. It can happen after a fork or an attack. Reorgs revert transactions in the removed branch.
How It Works
When a longer or higher-weight chain appears, nodes switch to it, discarding the previous tip. Transactions in the discarded blocks are re-included or dropped. Confirmations reduce reorg risk.
Why It Matters
Reorgs affect settlement security and can enable double spends. Deep reorgs are costly but possible. Understanding them is key to finality and exchange risk.
Related Concepts
Reorgs relate to Fork Choice Rules, Finality, and Double Spends. They are a risk in early transaction settlement.