What Is the Mathematical Relationship between Network Hash Rate and Network Difficulty?
Network difficulty is mathematically adjusted to ensure that the average time between finding new blocks remains constant, typically around 10 minutes for Bitcoin. When the total network hash rate increases, the difficulty must also increase proportionally to maintain the target block time.
Conversely, if the hash rate drops, the difficulty decreases. This adjustment mechanism stabilizes the block issuance schedule.
Glossar
Network Difficulty
Challenge ⎊ The inherent difficulty adjustment mechanism within blockchain networks, particularly those employing Proof-of-Work consensus, represents a crucial element in maintaining network stability and security.
Network Hash Rate
Security ⎊ Network hash rate represents the computational power dedicated to a proof-of-work blockchain, directly influencing the cost and feasibility of malicious attacks.
Hash Rate
Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.
Mathematical Relationship
Principle ⎊ Mathematical Relationship defines the fundamental, quantifiable equation linking two or more variables within a financial model or cryptographic process, such as the relationship between option premium and time decay or between difficulty and target.
Total Network Hash Rate
Security ⎊ ⎊ Total Network Hash Rate represents the collective computational power dedicated to a proof-of-work blockchain, directly influencing the cost of attacking the network.