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Definition · Mining

What is Difficulty?

The parameter setting how hard it is to find a valid block, adjusted every 2,016 blocks to keep the average interval near ten minutes.

Every 2,016 blocks the network compares how long that span actually took against the two weeks it should have taken and adjusts proportionally, within limits. More hardware means faster blocks means higher difficulty; hardware leaving means slower blocks and a downward adjustment.

It is a thermostat, and a well-designed one: it keeps issuance on schedule regardless of how much or how little mining capacity exists.

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This definition is part of the Bitcoin Logical glossary. For the fuller explanation, start with Learn, or see the live numbers on The Bitcoin Signal.