The Bitcoin network has witnessed the 8.16% difficulty level increase earlier today due to shortened block generation times.
The Bitcoin network is possibly the largest among all cryptocurrencies. Based on the Proof of Work consensus algorithm, the amount of processing power involved in mining Bitcoin is enormous, equivalent to a bunch of supercomputers. The total hashing power of the Bitcoin network continues to grow as more specialized mining hardware continues to be added.
Every player in the mining community wants to have a bigger chunk of rewards for themselves, which has increased competitiveness. Logically, the use of much more powerful hardware will make it possible to decipher the cryptographic puzzle much faster to discover new blocks. But, the developers of Bitcoin saw it coming a long time ago. In order to prevent miners from exploiting the network with powerful machines and to ensure a constant supply of Bitcoin, a regulation of the level of difficulty is built into the system.
The difficulty levels Bitcoin mining operations tend to adjust after each block in 2016. Difficulty adjustment will depend on network performance, taking into account the availability of hashing power and the average time taken to discover new ones. blocks. If the block generation time is faster than 6 new blocks per hour, the difficulty will increase. Likewise, if the block discovery time is more than 10 minutes, due to increased difficulty, it will be reduced to ensure a constant generation rate.
The promising price trend that Bitcoin has shown in recent months has encouraged many players to start new mining operations and expand the capacity of existing ones. The increase in network hash power is reflected in the history of difficulties. The latest 8.16% change follows earlier changes of 10.68% and 1.76% on November 18 and December 2, respectively.
The current difficulty level of the Bitcoin network stands at 310,153,855,703 against a total hash rate of 2,220,167,778 GH / s. If recent developments in the cryptocurrency mining industry are any indication, then the difficulty level will continue to climb. The increase in mining activity among Venezuelans and upcoming data centers, including the huge one built by Bitmain, will play a big role in changing difficulty levels.
Â Ref: Bitcoin Wisdom | Qntra | Image:Â MiningLifeOnline