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Definition DifficultyDifficulty adjustmentRetargetDifficulty retargeting

Mining Difficulty

A number the network raises or lowers so blocks keep arriving at the intended average pace, whatever mining power joins or leaves.

Difficulty determines how low a block hash must be to count as valid, so doubling it halves the chance that any given guess wins. Bitcoin recalculates it every 2016 blocks by comparing how long those blocks actually took with the two-week target, with the change capped at a factor of four in either direction; other networks retarget every block using a moving average. Without this feedback loop, growing mining capacity would shorten block times and accelerate issuance, and a sudden loss of capacity would stall the chain permanently. In practice a large drop in hash rate makes blocks slower until the next adjustment lowers the requirement, which is exactly what happened when a large share of Bitcoin mining relocated between regions in 2021.

In practice

After a sharp fall in hash rate, Bitcoin blocks arrive slower than the ten-minute target until the next retarget reduces difficulty and restores the pace.

The common misunderstanding

Difficulty does not set transaction fees or make sending harder; it only controls how hard it is to find a valid block.

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The figure this maps to

Mining Difficulty

A number that sets how hard it is to find a valid block on a proof-of-work chain.

Limits: Difficulty is a lagging response to hash rate rather than an independent signal: it changes only at scheduled adjustments and therefore reports conditions that have already passed, which makes it unsuitable for detecting a change in mining activity quickly. The absolute value is meaningless across…

02

Related terms

Block Time The average time between blocks on a network, which sets how often new transactions get their first…
Halving A scheduled event in some proof-of-work networks where the new coins paid to miners for each block…
Hash Rate How many guesses per second the machines securing a proof-of-work network are making, measured in…
Mining The process of competing to add the next block in a proof-of-work network, done by machines that…
Proof of Work A system where computers compete to solve a hard guessing puzzle, and the winner adds the next…
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