How Does an Increase in Hash Rate Affect the Difficulty Adjustment?

An increase in the network's hash rate signifies that more computational power is being used to mine blocks. This causes blocks to be found faster than the network's intended block time, such as Bitcoin's 10-minute target.

To restore this timing, the protocol automatically increases the mining difficulty. This self-regulating mechanism ensures a consistent and predictable issuance of new coins and enhances network security.