Definition ∞ Short term reorganization risk refers to the possibility that recently confirmed blocks on a blockchain might be reverted or replaced by an alternative chain within a brief period. This can occur due to network latency, temporary forks, or malicious attacks, leading to uncertainty about transaction finality. While usually resolved quickly, it can disrupt operations and create temporary double-spending opportunities. This risk is inherent in probabilistic finality systems.
Context ∞ Short term reorganization risk is a technical consideration often discussed in news concerning blockchain security, especially for networks with probabilistic finality like Bitcoin and early Ethereum. While generally low for established chains, it is a factor that decentralized applications and exchanges must account for when determining transaction confirmation thresholds. Ongoing protocol upgrades aim to mitigate this risk.
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