What Is the Relationship between Network Hash Rate and Mining Difficulty Adjustments?
The network hash rate is the total computational power dedicated to mining. Mining difficulty is a value that determines how hard it is to find a valid block.
Most Proof-of-Work protocols, like Bitcoin, are programmed to automatically adjust the difficulty upward when the network hash rate increases, and downward when it decreases. This ensures that the average time between blocks remains constant, typically around 10 minutes for Bitcoin, maintaining predictable issuance.
Glossar
Hash Rate
Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.
Computational Power
Capacity ⎊ The computational power, within the context of cryptocurrency derivatives and options trading, fundamentally represents the aggregate processing capability available to execute complex calculations and simulations.
Network Hash Rate
Security ⎊ Network hash rate represents the collective computational power dedicated to a proof-of-work blockchain, directly influencing the cost and feasibility of malicious attacks.
Target Block Time
Block ⎊ The target block time, within cryptocurrency contexts, represents the anticipated duration between successive blocks added to a blockchain.
Network Hash
Computation ⎊ Network hash, within cryptocurrency contexts, represents the quantifiable difficulty of mining a block, directly influencing block creation time and security parameters.