Definition ∞ Mining Difficulty is a measure of how hard it is to find a hash below a given target, a requirement for adding a new block to a Proof-of-Work blockchain. This parameter adjusts periodically to maintain a consistent block production rate, regardless of the total computational power on the network. A higher difficulty means miners must perform more computations on average to solve a block, requiring greater energy and processing power. It serves as a fundamental mechanism for network security and predictable issuance schedules.
Context ∞ News reports frequently mention Mining Difficulty adjustments, particularly for Bitcoin, as they significantly impact miner profitability and network security. An increase in difficulty often follows a rise in the network’s hash rate, reflecting greater competition among miners. Conversely, a decrease can signal miners leaving the network due to reduced profitability or other operational challenges. These adjustments are critical for maintaining the stability and long-term viability of Proof-of-Work cryptocurrency systems.
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