Mastering Blockchain Concepts: The Untold Story of Ommer Blocks

Dive deep into the fascinating world of ommer blocks, their function, history, and how they played a vital role in blockchain technology before the advent of proof-of-stake.

In proof-of-work blockchains, ommer blocks were created concurrently with another block but were not added to the main ledger. These elusive blocks, known as ommer blocks in Ethereum, are often discarded in favor of another accepted block. In the Ethereum blockchain, an ommer block could also be referenced as an uncle or orphan block, which describes familial relationships to explain block positions within the blockchain.

With Ethereum’s shift to the proof-of-stake mechanism in 2022, ommer blocks ceased to exist. However, blockchains utilizing proof-of-work still generate these ancillary blocks.

Key Takeaways

  • Ommer blocks in Ethereum were produced when two blocks were validated at nearly the same time, but only one could be added to the blockchain ledger.
  • Similar to Bitcoin’s orphan blocks, ommers had unique integrations in the Ethereum system.
  • Ethereum rewarded the creation of ommer blocks via transaction fees for the validator’s work.
  • After the DAO hack in 2016, Ethereum Classic forked off and continues to generate uncle blocks.

Understanding Ommer Blocks

In a public blockchain such as Ethereum or Bitcoin, it’s crucial to have a consensus method to ensure data integrity and verification. Therefore, the data structure known as a Merkle tree is utilized to establish ancestral relationships among blocks, fostering an unchangeable and verified blockchain ledger.

A Merkle tree embeds ancestral data within new blocks. It’s like the passing of DNA; information from a former block is carried over into the subsequent one, forming a family-tree-esque graphical representation with parent, child, and sibling blocks.

A Family Tree Example

Visualize an inaugural block, Block A. The ensuing block derived from Block A is its child and includes data from Block A along with additional new data, termed Block B a. This child inherits its parent’s information, creating a sequence of linkages forming the blockchain.

Envision two blocks validated simultaneously from B a; these are the sibling blocks, C ab and C ab2, derived from the same parent, Block B. The network selects Block C ab to be added officially to the blockchain. Conversely, Block C ab2 emerges as an ommer block—recognized but not added or validated.

Special Considerations

Such orphaned blocks were unintended mining process outcomes. However, Ethereum rewarded miners of ommer blocks for several strategic reasons:

  • Encouraging the emergence of more ommer blocks to expedite short block times and enhance network speed.
  • Reducing reward centralization toward massive mining pools and advancing decentralization, which allowed individual miners better chances at rewards.
  • Strengthening network security by engaging miners further with ommer blocks.

Under Ethereum’s previous consensus mechanism, Casper the Friendly GHOST (Greedy Heaviest Observed SubTree), ommer blocks were deliberately integrated. Validators chose validated block inclusions during blockchain forks.

Following Ethereum’s shift from proof-of-work to proof-of-stake in 2022, ommer blocks became obsolete due to the altered block production protocol. Nonetheless, Ethereum Classic, a product of the 2016 DAO hack fork, persists in producing ommer (or uncle) blocks.

Other Insights

What Was an Ommer (Uncle) Block?

Known initially as uncle blocks, developers opted for the gender-neutral term ‘ommer.’ Despite the Ethereum community adopting ommer, these blocks are redundant under proof-of-stake.

What Is Ethereum’s Ommer (Uncle) Rate?

Previously called the uncle rate, the ommer rate was the frequency at which such blocks emerged, reflecting fluctuating transactional volume dynamics. This rate is irrelevant on the primary Ethereum blockchain post-transition.

What Was Ethereum’s Ommer (Uncle) Reward?

Earlier, the proof-of-work method granted rewards comprising a minor fraction of the block reward, supplemented by transaction fees, to the creators of ommer blocks. Following the transition to proof-of-stake in 2022, ommer blocks are no longer produced.

The Bottom Line

Ommer blocks represented extraneous yet indispensable elements created during Ethereum’s proof-of-work mining era. While not integral to the main ledger, these blocks were critical in Ethereum’s network infrastructure by providing additional layers of processing. “The Merge” in 2022 stood as a landmark transition, obviating the need for mining and, subsequently, the creation of ommer blocks.

Related Terms: blockchain, proof-of-work, proof-of-stake, mining, uncle blocks, Ethereum, cryptocurrency

References

  1. EthereumClassic.org. “Ethereum Classic Course: 8. Ethereum Classic’s Monetary Policy”.
  2. Ethereum.org. “Block Proposal”.
  3. Ethereum.org. “Proof-of-Work”.

Get ready to put your knowledge to the test with this intriguing quiz!

--- primaryColor: 'rgb(121, 82, 179)' secondaryColor: '#DDDDDD' textColor: black shuffle_questions: true --- ## What is an "Uncle Block" in the context of cryptocurrency? - [ ] A block that refers to a smart contract - [ ] A block mined on a Bitcoin chain - [x] A block that’s mined but not included in the main blockchain - [ ] A block that contains an additional security feature ## In which cryptocurrency is the concept of "Uncle Blocks" primarily used? - [ ] Bitcoin - [x] Ethereum - [ ] Litecoin - [ ] Ripple ## How does an "Uncle Block" benefit the network it is part of? - [ ] Increases transaction fees - [x] Increases the security and stability of the blockchain - [ ] Decreases the block reward - [ ] Lowers mining difficulty ## Why are "Uncle Blocks" rewarded in Ethereum’s consensus mechanism? - [ ] To discourage new miners - [x] To make mining more inclusive and secure by acknowledging near-successful blocks - [ ] To decrease block creation time - [ ] To centralize blockchain governance ## Which other term is equivalent to "Uncle Block" in cryptocurrency terminology? - [ ] Golden block - [ ] Merkle block - [ ] Orphan block - [x] Unc Block ## What action do miners take with an "Uncle Block"? - [x] They submit it alongside the main block to receive a smaller reward - [ ] They discard it as it has no value - [ ] They merge it with the next main block - [ ] They use it to verify another transaction outside the blockchain ## What happens to transactions contained in an "Uncle Block"? - [ ] They are reversed - [x] They can be included in new blocks - [ ] They are orphaned permanently - [ ] They generate new uncle blocks ## How does the inclusion of "Uncle Blocks" help in reducing mining centralization? - [ ] By increasing the need for specialized equipment - [ ] By requiring higher computational energy - [x] By allowing miners with slightly lagging network conditions to earn rewards - [ ] By only rewarding non-uncle blocks ## What is one of the potential risks associated with "Uncle Blocks"? - [ ] Higher vulnerabilities to 51% attacks - [ ] Increased blockchain scalability - [ ] Lower network reliability - [x] Possible propagation of invalid elements ## How does Ethereum’s reward system treat "Uncle Blocks" in comparison to the main blocks? - [ ] Uncle blocks receive the same reward as main blocks - [ ] Uncle blocks are penalized and receive no reward - [x] Uncle blocks receive a smaller reward than main blocks - [ ] Uncle blocks must be rebroadcasted to gain rewards