What Specific Formula Is Used to Calculate the Bitcoin Mining Difficulty Adjustment?
The Bitcoin difficulty adjustment is calculated by taking the expected time for 2016 blocks (two weeks) and dividing it by the actual time it took to mine the previous 2016 blocks. This ratio is then multiplied by the current difficulty level.
The formula is: New Difficulty = Current Difficulty (Target Time of 2016 Blocks / Actual Time of 2016 Blocks). This ensures a self-regulating network.
Glossar
2016 Blocks
Genesis ⎊ ⎊ The concept of ‘2016 Blocks’ originates from the Bitcoin blockchain, specifically referencing the block height at which the Segregated Witness (SegWit) soft fork activated ⎊ block 479,888 ⎊ occurring around October 28, 2017, though the term retrospectively applies to the blocks leading up to this pivotal moment.
Difficulty Adjustment
Mechanism ⎊ Difficulty adjustment is a crucial mechanism in proof-of-work PoW blockchain networks, particularly Bitcoin, that automatically recalibrates the computational effort required to mine a new block.
Difficulty Adjustment Formula
Algorithm ⎊ The Difficulty Adjustment Formula (DAF) within cryptocurrency networks, particularly proof-of-work systems, represents a dynamic mechanism designed to maintain a consistent block generation rate irrespective of fluctuating computational power.
Bitcoin Difficulty Adjustment
Adjustment ⎊ The Bitcoin Difficulty Adjustment is a core mechanism within the Bitcoin protocol designed to maintain a consistent block generation rate, nominally 10 minutes, irrespective of fluctuations in network hashrate.
Bitcoin Mining Difficulty
Adjustment ⎊ Bitcoin mining difficulty represents a dynamic recalibration of the computational effort required to validate transactions and create new blocks on the blockchain, adjusting approximately every two weeks or 2016 blocks.