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Real-Time Difficulty Adjustment

Definition

Real-time difficulty adjustment is a mechanism in some blockchain protocols that automatically changes the computational effort required to mine a new block. This adjustment occurs dynamically, often after each block or a small number of blocks, to maintain a consistent block production rate despite fluctuations in network hash power. It ensures the network remains secure and functional by preventing a single entity from dominating block creation or slowing down transaction processing. This adaptive feature is vital for the stability and predictability of proof-of-work blockchains.