What Is “Mining Difficulty” and How Does It Affect Energy Consumption?

Mining difficulty is a measure of how hard it is to find a valid hash for a new block in a Proof-of-Work (PoW) system. This difficulty level adjusts automatically based on the total computational power (hash rate) of the network to ensure that blocks are found at a stable, predictable rate.

As more miners join and the hash rate increases, the difficulty rises, requiring even more computational effort and thus more energy to mine a block. This self-regulating mechanism is crucial for security but directly links network growth to increased energy consumption.