August 30th, 2021 | Updated on March 5th, 2022
Difficulty is a parameter that bitcoin and other cryptocurrencies use to keep the average time between blocks steady as the network’s hash power changes. Bitcoin and other cryptocurrencies that use proof-of-work blockchains are maintained through a process called mining.
In this system, miners – computers running the cryptocurrency’s software client – compete to find a new block, adding the most recent batch of transaction data to the chain. They receive fees and (in some cases) a reward of new tokens in return.