With Bitcoin the difficulty is adjusted every 2016 blocks, and with a block time of nearly ten minutes this can take nearly two weeks to readjust. Other crypto currencies have developed methods to peg their difficulties or adjust them dynamically to retain stability when, for example, multipools come into play.
Multipools, such as GHash.io’s, can hugely increase the amount of network hashing power for one particular crypto currency and dramatically decrease the block time when set to solve the particular proof of work.
Solutions to this come in the form of non standard difficulty readjustment algorithms.
The Kimoto Gravity Well was invented to halt the negative effects of multipools on various crypto currencies by adjusting the difficulty every block. However this just led to jumping on and jumping off by the multi pools.
Digishield was another invention originally used by the crypto currency digibyte – with the goal of trying to stabilise crypto currencies after large multipool hashing increases.
Another common difficulty readjustment algorithm is the Dark Gravity Wave, as originally used in Darkcoin, which combines multiple exponential and simple moving averages to smooth difficulty readjustments and mitigate against exploits in the Kimoto Gravity Well.
As for Bitcoin, the ability for multipools to play a difference in the difficulty readjustment is rather limited due to the size of its network hashing power – which if we say is at 60 Peta hash – would require an investment of nearly $3million dollars to increase by just 10%. Bitcoin is very much safe from difficulty readjustments being taken advantage of by multipool miners.
- What is a Bitcoin Fork?
- How does a hashing algorithm work?
- Bitcoin Transactions – Scriptsig and Scriptpubkey – locking and unlocking a transaction?
- How does the Bitcoin Network actually work?
- What are Coloured Coins and Meta Coins?
- What is the Block Size Limit
- What are Bitcoin Futures, Options and CFD’s?
- An Overview of Optimism's (OP) History Sponsored
- How to Become a Crypto Liquidity Provider
- How a Data Breach Could Cost You Your Crypto Wallet
- Best VPN for Crypto Trading: What to Look For
- Using VPNs and Password Managers to Secure Your NFTs
- B2Broker Introduces cTrader as a White Label Platform
- CryptoCompare Lists Potential Ethereum Hard Fork Tokens
- Crypto Spot Trading Volumes Reach 20-Month Low
- Binance Leads YTD Crypto Exchange Volumes as Competition Heats Up
- Total Value Locked in DeFi Protocols Plunged 65.7% in Q2
This website is only provided for your general information and is not intended to be relied upon by you in making any investment decisions. You should always combine multiple sources of information and analysis before making an investment and seek independent expert financial advice.
Where we list or describe different products and services, we try to give you the information you need to help you compare them and choose the right product or service for you. We may also have tips and more information to help you compare providers.
Some providers pay us for advertisements or promotions on our website or in emails we may send you. Any commercial agreement we have in place with a provider does not affect how we describe them or their products and services. Sponsored companies are clearly labelled.