Definition ∞ Time-varying difficulty refers to the characteristic of certain blockchain protocols where the computational difficulty for mining new blocks adjusts dynamically over time. This adjustment mechanism is designed to maintain a consistent block production rate, regardless of changes in the total computational power contributed by miners. The difficulty increases when blocks are found too quickly and decreases when they are found too slowly. This ensures a stable and predictable schedule for new block creation.
Context ∞ Time-varying difficulty is a standard feature in Proof-of-Work blockchains, ensuring network stability and predictable token issuance. News often mentions these adjustments, particularly for Bitcoin, as they reflect changes in mining activity and market conditions. This mechanism is crucial for the long-term operational health of these networks, preventing both rapid inflation and network stagnation. Its proper functioning is essential for the economic model and security of many cryptocurrencies.
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