What is the mining difficulty?

Simply put, mining is the result of many people competing to solve a mathematical problem in order to compete for the authority to record the next block and obtain rewards. Whoever has the highest computing power (performance) of the mining machine (computer) has a higher chance of obtaining the reward by calculating the result first. However, since the birth of Bitcoin, the computing power of mining machines (computers) has increased thousands of times, but the number of coins obtained from mining has not increased, except for the halving rule of cryptocurrency rewards every 4 years (or other time periods). , another factor is the role of mining difficulty.

Mining difficulty refers to the difficulty of solving mathematical results each time. Due to the increasing number of miners, in order to ensure the rationality of competition, it is necessary to adjust the difficulty of mathematical solution. As the number of miners increases, the difficulty will dynamically increase according to certain rules. However, if miners are all swarming to mine a certain digital currency, the difficulty of solving it will be very high. However, the computing power of the mining machines held by the miners is fixed. If Ruyi wants to obtain the same amount of rewards, it will be more difficult to mine than usual. This is the so-called mining difficulty.

Generally speaking, in order to ensure mining profits, miners will pay special attention to the mining difficulty of cryptocurrencies. If the mining difficulty of a certain coin is high, it will switch to mining a relatively low-difficulty cryptocurrency. Therefore, mining difficulty is a very important parameter for miners.