Adaptive Difficulty Adjustment in cryptocurrency refers to the ability of a blockchain network to automatically adjust the difficulty of solving cryptographic puzzles required to validate transactions and add new blocks to the chain. This adjustment is necessary to maintain a consistent rate of block creation, ensuring that transactions are processed efficiently and securely.
The difficulty level is typically adjusted based on the total computing power of the network. If there is a significant increase in the number of miners or in their computational power, the difficulty will increase to ensure that blocks are not added too quickly. Conversely, if there is a decrease in mining activity, the difficulty will decrease to prevent blocks from taking too long to be added.
By adapting the difficulty level, the network can maintain a steady pace of block creation, regardless of fluctuations in mining activity. This helps to ensure the security and stability of the blockchain network, making it resistant to attacks and providing a reliable platform for transactions.
