Bitcoin Mining Difficulty
Blockchain 101 from the ASSEMBLE Protocol
The ASSEMBLE Protocol is a blockchain-based global point integration platform that exploits ASM utility tokens, whilst establishing a business ecosystem that can integrate, utilize existing points and miles with point providers, consumers and retailers.
Welcome back, readers! As we’re sure you’re aware, Bitcoin is based on the PoW concept, which basically means bitcoins can be entered into circulation through a mining process. In fact, Bitcoin mining is painstaking, costly, and only occasionally rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because miners are rewarded for their work with crypto tokens. Let’s learn more about it through this post.
What is Bitcoin Mining Difficulty?
“Difficulty” is a measure of how difficult it is to mine a Bitcoin block. A high level of difficulty means it is difficult to solve the password, and a low level of difficulty means it is relatively easy to solve the password. The higher the difficulty level, the more secure the network.
Bitcoin Mining Algorithm
Bitcoin creator Satoshi Nakamoto designed his blockchain to adjust the difficulty every 2,016 blocks so that the average time between each block is 10 minutes. This means the difficulty level is usually adjusted once every 14 days.
If the bitcoin hash rate decreases, it reduces the difficulty and the block creation time increases. On the other hand, as the hash rate increases, it increases the difficulty of mining and delays the creation of blocks.
Issue
Increasing the difficulty of mining means that it will be more difficult to mine cryptocurrency with the same mining capacity as now. Furthermore, higher mining difficulties require faster mining equipment to create the same blocks as before. That means private miners will have to spend a lot of money on electricity, or a lot of money on mining machines that need to be continually upgraded.
This is a big deal in the blockchain community and a lot of solutions have been thrown out. We hope this article was helpful for you! Maybe you know a little bit more about blockchain that you didn’t know before. Stay tuned for more educational articles and information about ASSEMBLE!
