Skip to main content

How Does the ‘Difficulty Adjustment’ Mechanism Work?

The difficulty adjustment mechanism automatically changes the mining difficulty of a cryptocurrency network, like Bitcoin, to ensure that the average time between blocks remains constant (e.g. 10 minutes for Bitcoin).

It adjusts approximately every two weeks (2016 blocks). If more computing power joins the network, difficulty increases; if power leaves, it decreases.

What Is the “Retarget Period” in the Bitcoin Difficulty Adjustment Mechanism?
Define “Implied Volatility” and Its Role in Option Pricing
How Does Mining Difficulty Adjust Based on the SHA-256 Hashing Rate?
How Does the Concept of Difficulty Adjustment Relate to Dynamic Pricing in Financial Markets?