Base Difficulty Adjustment Engineering Design on NENGHere is good Q&A in discord on this issue:
SefiaToday at 7:19 AM
Thanks
May I know what are the pros and cons to have a daily difficulty adjustment vs a 2 week difficulty adjustment since bitcoin is 2016 block (which is 2 weeks) vs if lets say 144 blocks (daily)
honglu69Today at 1:10 PM
@Sefia This is very good question. This is really about engineering design of NENG on base difficulty adjustment period. Nengcoin continues tradition of bitcoin/litecoin/dogecoin on this issue. In general, the faster the block time, the quicker you want difficulty adjustment, the slower the block time, you want longer period for difficulty adjustment.
Here are current some stats on bitcoin/litecoin/dogecoin:
bitcoin adjust base difficulty every 2 weeks and litecoin adjust every 4 days. Dogecoin adjust base difficulty every 1 day.
Nengcoin is closer to dogecoin, therefore adjust base difficulty for 1 day target or every 1440 blocks. In reality, the NENG block average time was 2x faster than desired targeted time. So in average in real life, NENG really adjusted difficulty every half day historically.
Another consideration of this is for good ASIC miners retention issue. randomSpike has collateral damage for good ASIC miners when a spike block is mined in that for 1 day or 2, 100% of block rewards go to CPU miners and this poses a huge risk to good ASIC miners who provide security and protection on the NENG blockchain. I would say good ASIC miners are those rigs that mine NENG 24 hours a day, 7 days a week providing security for block fee payment in exchange. If the difficulty adjustment period is too long, then this spike penalty would be too high to piss off those good ASIC miners. That would not be good. Good ASIC miners can continue mining NENG even if 1 day or 2 days is nothing after spike, some days after reset will be huge reward, some days on spike block mined is nothing, they tend to average out. This consideration also means that block adjustment period can not be too long in order to entice those good ASIC miners not to leave NENG mining.
