How Is the “Target Hash” Calculated from the Difficulty Setting?
The target hash is a 256-bit number that represents the maximum value a block's hash can have to be considered valid. The network's difficulty setting is used to calculate this target hash.
The difficulty is an easier-to-read representation of how far below the maximum possible hash value the current target is. A higher difficulty corresponds to a lower target hash, meaning miners must find a hash with more leading zeros, making the process computationally harder.
Glossar
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.
Target Hash
Derivation ⎊ A Target Hash, within cryptocurrency and derivatives, represents a cryptographic commitment to a future state, often a block header or transaction data, utilized in off-chain scaling solutions and privacy protocols.
Target
Precision ⎊ A target, within cryptocurrency derivatives and financial markets, denotes a predetermined price level or state serving as a focal point for trading strategies and risk management protocols.