How Does a Decrease in Network Hash Rate Affect the Difficulty?
A decrease in the total network hash rate means that blocks are being found slower than the target time. When the difficulty adjustment period arrives, the protocol will algorithmically decrease the mining difficulty.
This makes it easier for the remaining miners to find a valid block hash, thus restoring the average block discovery time to the intended schedule. A difficulty decrease typically increases the profitability for the remaining miners.
Glossar
Difficulty Decrease
Adjustment ⎊ Difficulty Decrease is the protocol adjustment mechanism designed to lower the computational hurdle required for a miner to successfully find a valid block hash when network hash rate temporarily declines.
Network Hash Rate
Security ⎊ Network hash rate represents the collective computational power dedicated to a proof-of-work blockchain, directly influencing the cost and feasibility of malicious attacks.
Difficulty Adjustment Period
Function ⎊ Difficulty Adjustment Period defines the fixed interval, measured in blocks or time, after which a Proof of Work cryptocurrency protocol automatically recalculates and applies a new mining difficulty target.
Network Hash
Computation ⎊ Network hash, within cryptocurrency contexts, represents the quantifiable difficulty of mining a block, directly influencing block creation time and security parameters.
Total Network Hash Rate
Hash ⎊ The total network hash rate represents the cumulative computational power dedicated to validating transactions and securing a proof-of-work cryptocurrency network, such as Bitcoin.
Block Discovery Time
Measurement ⎊ Block Discovery Time refers to the average interval required for a new, valid block to be successfully mined and appended to the longest chain, a crucial metric for blockchain performance.