What Would Happen If the Difficulty Did Not Adjust?
If the difficulty did not adjust, the block time would become erratic. If the hashrate increased, blocks would be found much faster than the 10-minute target.
If the hashrate decreased significantly, blocks would be found much slower, potentially halting transaction processing and network functionality.
Glossar
Block Time
Epoch ⎊ Within cryptocurrency and decentralized finance, epoch refers to a discrete time interval during which specific operations or consensus mechanisms are executed.
Transaction Processing
Ledger ⎊ The core of transaction processing within cryptocurrency, options, and derivatives hinges on the immutable record-keeping provided by a distributed or centralized ledger.
Faster Block Times
Finality ⎊ Faster Block Times refer to a protocol design characteristic where the average interval between the discovery and validation of new blocks is significantly reduced, often to seconds rather than minutes.
Altcoins
Volatility ⎊ Altcoins, representing cryptocurrencies alternative to Bitcoin, introduce heightened volatility profiles impacting derivative pricing and risk management strategies.
Hashrate
Definition ⎊ Hashrate represents the total computational power per second that a miner or the entire network dedicates to solving cryptographic puzzles in a Proof of Work blockchain.
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.