How Does the Difficulty Adjustment Mechanism Contribute to Bitcoin’s Scarcity?
The difficulty adjustment mechanism ensures that new Bitcoin is issued at a predictable and consistent rate, regardless of the amount of mining power on the network. By maintaining the 10-minute block interval, it strictly enforces the pre-programmed supply schedule, including the halvings, which is the foundation of Bitcoin's scarcity.
Glossar
Difficulty Adjustment Mechanism
Algorithm ⎊ Difficulty Adjustment Mechanisms represent a core tenet of blockchain protocol design, dynamically modulating mining or validation difficulty to maintain consistent block times despite fluctuating 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.