How Does a Miner Calculate the “Target” Value for a Valid Block Hash?
The target value is derived from the "bits" field in the block header, which is a compressed representation of the target. The miner must find a nonce such that the SHA-256 hash of the block header is numerically less than or equal to this target value.
The target is recalculated every 2016 blocks based on the previous mining speed to adjust the difficulty.
Glossar
Block Header
Genesis ⎊ A block header, fundamentally, encapsulates metadata pertaining to a specific block within a blockchain; it serves as the block’s identifying signature and is critical for maintaining chain integrity.
Target Value
Objective ⎊ Within cryptocurrency derivatives and financial engineering, the Target Value represents the predetermined price level or outcome against which the performance of a derivative contract is assessed.
Target
Precision ⎊ A target, within cryptocurrency derivatives and financial markets, denotes a predetermined price level or state serving as a focal point for trading strategies and risk management protocols.
Valid Block
Confirmation ⎊ A valid block, within a blockchain context, represents a data package cryptographically appended to the chain following consensus protocol stipulations, signifying transaction finality and state updates.