If it influences difficulty, and is based on how long previous blocks took to uncover, then how is this orchestrated through the network - how does everyone agree how long a block took?
The blocks are timestamped. 
Topic: how does difficulty work exactly? - page 2. (Read 4508 times)
From what I understand:
Given the same hashrate, doubling the difficulty means doubling the time. Therefore, you can say that difficulty scales linearly with time.
My assumption is based on the formula
Example:
The current difficulty is ~2.7 million (http://bitcoincharts.com/ shows the difficulty number in the topmost dash). If the difficulty doubled to 5.4 million and the network hashrate remained the same, then the expected time to solve a block would double (the expected number of blocks solved per unit time would be halved).
(edited for clarity)
Given the same hashrate, doubling the difficulty means doubling the time. Therefore, you can say that difficulty scales linearly with time.
My assumption is based on the formula
Code:
time = difficulty * 2^32 / hashrate
listed on (https://en.bitcoin.it/wiki/Difficulty)Example:
The current difficulty is ~2.7 million (http://bitcoincharts.com/ shows the difficulty number in the topmost dash). If the difficulty doubled to 5.4 million and the network hashrate remained the same, then the expected time to solve a block would double (the expected number of blocks solved per unit time would be halved).
(edited for clarity)
I have read that, and still don't fully get what difficulty is. It is described as the difficulty in processing the next block - it which case it is just a measure. But it is also described as a mechanism for ensuring that blocks are not uncovered to quickly - in which case it influences difficulty rather than measures it.
If it influences difficulty, and is based on how long previous blocks took to uncover, then how is this orchestrated through the network - how does everyone agree how long a block took?
If it influences difficulty, and is based on how long previous blocks took to uncover, then how is this orchestrated through the network - how does everyone agree how long a block took?
i need to explain how difficulty works exactly. How does it calculate what the next difficulty will be and under what circumstances does it lower etc.
https://en.bitcoin.it/wiki/Difficulty
i need to explain how difficulty works exactly. How does it calculate what the next difficulty will be and under what circumstances does it lower etc.
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