How Does the ‘Mining Difficulty’ Adjust in PoW?
Mining difficulty is an automatically adjusted parameter that determines how hard it is to find a valid block hash. It is periodically adjusted by the protocol to ensure that the average block production time remains constant, regardless of the total computational power (hash rate) of the network.
This keeps the block issuance rate predictable.
Glossar
Computational Power
Algorithm ⎊ Computational power, within cryptocurrency, options trading, and financial derivatives, fundamentally represents the processing capacity dedicated to executing complex calculations essential for network operation and trade execution.
Block Production Time
Determinism ⎊ Block Production Time, within distributed ledger technology, represents the predictable interval at which new blocks are added to a blockchain, fundamentally influencing transaction confirmation speeds and network throughput.
Block Issuance Rate
Issuance ⎊ The Block Issuance Rate quantifies the speed at which new units of a cryptocurrency are generated and distributed to network participants, fundamentally defining the asset's supply inflation schedule.