Difficulty factors
There are several factors that affect mining difficulty:
- For some cryptocurrencies, there is a global block difficulty that the system sets by default. Blocks need to have hash power that is lower than the target set by the system.
- Second, it is possible for a mining pool to use what is known as a “shared difficulty” setting for mining a specific cryptocurrency. Smaller share difficulty provides more accurate stats and payouts in the short-term and bigger share difficulty, while also showing accurate results, does so in the longer-term.
- Third, mining difficulty depends on how many people are actively mining on the cryptocurrency network at any given time.
Read More: https://paybis.com/blog/glossary/what-is-mining-difficulty/
Bitcoin example
For example, the Bitcoin mining network has a global block difficulty. It’s mining difficulty automatically adjusts every 2,016 blocks on the bitcoin network. As the difficulty increases, miners will need better machines to accommodate the difficulty.
