Introduction: Why is Mining Difficulty Crucial?
In the cryptocurrency ecosystem, mining difficulty in blockchain is far more than just a technical number — it is the core regulator that maintains the stable operation of the entire network. Whether it is Bitcoin (BTC, current price $88.56K, 24-hour increase +1.18%) or Litecoin (LTC, current price $77.31), fluctuations in mining difficulty directly impact miner earnings, network security, and price trends.
This article delves into the operational mechanisms of mining difficulty, influencing factors, and its chain reaction on the market.
The Essence of Mining Difficulty: An Adaptive Network's Intelligent Balance
Mining difficulty is not a fixed value but a dynamically adjusted parameter. Miners use computational power to solve complex cryptographic puzzles (Proof-of-Work), verify transactions, and generate new blocks.