How Does the Pool’s Target Difficulty for Shares Compare to the Network’s Target Difficulty?
The pool's target difficulty for shares is significantly lower than the network's target difficulty. The network's difficulty is set by the blockchain protocol to ensure a consistent block time (e.g. every 10 minutes for Bitcoin).
The pool's target difficulty is set low enough so that individual miners can find and submit shares frequently, providing a steady stream of measurable work. This allows the pool to accurately track each miner's contribution.
Glossar
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.
Share Difficulty
Metric ⎊ This parameter quantifies the computational effort required for a single successful hash submission to be accepted by the network consensus mechanism.
Target Difficulty
Definition ⎊ Target Difficulty is the specific numerical threshold set by the protocol that a newly mined block's hash must meet or exceed to be accepted by the network consensus mechanism.
Shares
Equity ⎊ The term "Shares," within the context of cryptocurrency derivatives and financial engineering, fundamentally denotes a proportional ownership stake, mirroring its traditional equity counterpart.
Consistent Block Time
Consistency ⎊ The adherence to a predetermined average time interval between new block creations is fundamental for network predictability.
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.