How Is Mining Difficulty Dynamically Adjusted in a Typical Proof-of-Work System?

Mining difficulty is automatically adjusted by the protocol to maintain a relatively consistent block time, regardless of changes in the total network hash rate. For Bitcoin, this adjustment happens every 2016 blocks (roughly every two weeks).

If blocks were found too quickly, the difficulty increases; if they were found too slowly, the difficulty decreases. This ensures a steady supply rate and predictable inflation schedule.