What Is an Uncle Block (Ommer Block)?
The concept of an uncle block, also known as an ommer block, is primarily relevant within the Ethereum mining ecosystem.
It arises due to the specific design of the Ethereum ledger, which allows only one block to be added at a given time.
Some users in the blockchain community also refer to these blocks as stale blocks.
Data Validation
Mining is open to all users in public blockchains like Bitcoin or Ethereum.
Therefore, a robust mechanism is necessary to validate input data. Within the Ethereum blockchain, blocks are individually recorded on the ledger.
In the event of simultaneous block submissions, only one block is accepted, while the other is discarded.
This discarded block is known as the uncle block and plays a crucial role in preventing data manipulation within the blockchain.
To understand why Ethereum utilizes a system that produces uncle blocks, we must delve into how its data structure is organized.
Many blockchains employ the Merkle Tree concept, where data blocks are linked to each other through ancestral relations, including parents, children, siblings, and even uncle blocks.
Rewarding Miners for Uncle Blocks
It’s important to note that although the Ethereum system rejects uncle blocks, miners responsible for these blocks are still rewarded for their efforts.
According to the proof-of-work consensus mechanism, the blockchain ensures fairness by providing uncle block miners with a specific percentage of the block reward, along with transaction fees.
This approach creates a more equitable environment for miners, preventing any single party from benefiting at the expense of others.
However, the reward for mining an uncle block is lower than a completed block’s.
When a cryptocurrency transitions from a proof-of-work to a proof-of-stake system, the reward structure for uncle blocks is also affected.
In such cases, uncle block miners receive only transaction fees and not a percentage of the block reward.