What Is the ‘Difficulty Adjustment Algorithm’ and Why Is It Necessary?
The difficulty adjustment algorithm is a programmed mechanism that periodically recalibrates the mining difficulty. It measures the time taken to find the last set of blocks (e.g.
2016 blocks for Bitcoin) and adjusts the difficulty up or down to ensure the average block time remains close to the target (e.g. 10 minutes).
It is necessary to maintain a predictable, stable coin issuance rate regardless of fluctuations in the total network hash rate.
