In Options Trading, How Does Transaction Speed Relate to PoW Difficulty?
Transaction speed, often measured by confirmation time, is indirectly related to PoW difficulty. While difficulty is adjusted to maintain a target block time, higher difficulty means more computational power is being expended to find the block.
If the difficulty adjustment is slow, a sudden drop in hash rate can slow down block creation, delaying transaction confirmation. This uncertainty in speed is detrimental to high-speed options trading strategies.