How Does the ‘Difficulty Adjustment’ Mechanism Function in PoW?

The difficulty adjustment mechanism automatically changes the complexity of the Proof-of-Work (PoW) puzzle to maintain a consistent block creation time. If the total hash rate increases, the network makes the puzzle harder (increases difficulty).

If the hash rate decreases, the puzzle becomes easier. This ensures a predictable supply schedule and prevents rapid block creation, maintaining the network's intended pace and security.