How Does the Pool Difficulty Setting Relate to the Network Difficulty?
The pool difficulty is set significantly lower than the network difficulty. The network difficulty determines the threshold for a valid block, which is extremely high.
The pool difficulty is a lower, internal threshold that allows miners to submit shares frequently to prove their work. The pool aggregates these low-difficulty shares until a single share meets the network's high difficulty.
Glossar
Pool Difficulty Setting
Calibration ⎊ Pool difficulty setting represents a dynamic adjustment mechanism integral to proof-of-work cryptocurrency mining, influencing the computational effort required to generate new blocks.
Difficulty Setting
Challenge ⎊ In cryptocurrency derivatives, options trading, and financial derivatives generally, Difficulty Setting denotes a configurable parameter influencing the probabilistic nature of outcomes, particularly within mechanisms designed to manage risk or incentivize specific behaviors.
Network Difficulty
Algorithm ⎊ The network difficulty, fundamentally, represents a dynamically adjusted parameter within blockchain systems, primarily designed to maintain a consistent block generation rate irrespective of computational power fluctuations.
Difficulty
Measurement ⎊ Difficulty, in the blockchain context, quantifies the computational effort required to find a valid hash for a new block, dynamically adjusting to maintain a target block generation time.
Pool Difficulty
Hashrate ⎊ This metric reflects the aggregate computational power directed towards solving the cryptographic challenge within a mining pool, directly influencing the probability of finding the next block.