How Does the Concept of Difficulty Adjustment Relate to Dynamic Pricing in Financial Markets?

The difficulty adjustment is similar to dynamic pricing in financial markets, where the cost of a service or product changes based on demand or capacity. In mining, the "cost" (difficulty) of finding a block is dynamically adjusted based on the "demand" (hash rate).

This mechanism ensures the network's capacity (block time) remains constant. In financial markets, fees or spreads might widen during high volatility or low liquidity, dynamically pricing the risk.