How Does an Increase in Network Hash Rate Affect Mining Difficulty?
Mining difficulty is a measure of how hard it is to find a hash below the target. It is algorithmically adjusted to ensure that the average time between finding new blocks remains relatively constant, typically 10 minutes for Bitcoin.
When the total network hash rate increases, blocks are found faster than the target time. The protocol's difficulty adjustment mechanism then increases the difficulty to slow down block discovery, maintaining the intended issuance schedule.
Glossar
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.
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.
Network Hash
Computation ⎊ Network hash, within cryptocurrency contexts, represents the quantifiable difficulty of mining a block, directly influencing block creation time and security parameters.
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.