How Does a Difficulty Adjustment Protect the Bitcoin Network from Sudden Influxes of Mining Power?
The difficulty adjustment is a self-regulating feature that occurs roughly every two weeks, or 2,016 blocks. If a sudden influx of mining power (hash rate) causes blocks to be found faster than the 10-minute target, the network automatically increases the difficulty.
This increase ensures that the block creation rate slows back down to the target average. It prevents rapid inflation from an oversupply of new coins and maintains the network's intended security and monetary schedule.
Glossar
Mining Power
Capacity ⎊ Mining Power represents the total aggregated computational effort, measured in hashes per second, dedicated by all active participants to secure a specific proof-of-work blockchain at any given moment.
Bitcoin Network
Network ⎊ Bitcoin Network refers to the distributed, peer-to-peer system that processes and validates all transactions using cryptographic principles and a shared ledger maintained by decentralized participants.
Bitcoin Difficulty Adjustment
Adjustment ⎊ The Bitcoin Difficulty Adjustment is a core mechanism within the Bitcoin protocol designed to maintain a consistent block generation rate, nominally 10 minutes, irrespective of fluctuations in network hashrate.
Difficulty Adjustment
Mechanism ⎊ Difficulty adjustment is a crucial mechanism in proof-of-work PoW blockchain networks, particularly Bitcoin, that automatically recalibrates the computational effort required to mine a new block.