What Role Does the Difficulty Adjustment Algorithm Play in Network Security?

The difficulty adjustment algorithm is crucial for network security by maintaining a predictable block generation rate, regardless of fluctuations in hashrate. If the hashrate drops suddenly, the algorithm lowers the difficulty, preventing block times from becoming excessively long and keeping the chain operational.

Conversely, if hashrate spikes (e.g. from an attacker), the difficulty increases, making it more expensive to continue the attack. It ensures the economic cost of mining remains high enough to deter malicious actors from easily accumulating 51 percent control.

What Is the Difference between a 51 Percent Attack and a Sybil Attack?
How Is the Cost of a 51 Percent Attack Estimated for a PoW Network?
How Does a Cryptocurrency’s Difficulty Adjustment Algorithm Function?
How Does the Cost of a 51 Percent Attack Relate to the Network’s Market Capitalization?
What Is a “Selfish Mining” Attack and How Does It Relate to 51 Percent Control?
What Is a ’51 Percent Attack’ and How Do Consensus Models like PoA Try to Prevent It?
Do Proof-of-Stake (PoS) Systems Face an Equivalent to a 51 Percent Attack?
How Does the Difficulty Adjustment Mechanism Affect the Cost of a 51% Attack?

Glossar