How Does a ‘Difficulty Adjustment’ Maintain a Consistent Block Time?

The difficulty adjustment is a mechanism in Proof-of-Work blockchains that periodically changes the mining difficulty target. If the average time to mine a block has been faster than the protocol's target time (e.g.

10 minutes for Bitcoin), the difficulty increases. If it has been slower, the difficulty decreases.

This ensures that regardless of fluctuations in the total network hashrate, the block generation rate remains relatively stable.

What Is the ‘Cost of Carry’ in Futures Pricing?
What Is the Difference between Hashrate and Mining Difficulty as Underlying Assets for a Derivative?
How Does the Difficulty Adjustment Mechanism Protect the Network from Rapid Hashrate Fluctuations?
How Is the Profitability of Cryptocurrency Mining Related to Network Hashrate?
What Is the Concept of “Difficulty Adjustment” and How Does It Relate to Sudden Hashrate Spikes?
What Is a “Hash Rate” and How Does It Affect the Difficulty Target?
How Does the pool’S Target Difficulty for Shares Compare to the Network’s Target Difficulty?
Explain the ‘Put-Call Parity’ Theorem.

Glossar