Difficulty Adjustment Algorithm


Bitcoin’s difficulty adjustment algorithm is executed only once every 2016 blocks or about every two weeks. While this is not ideal it works sufficiently well for Bitcoin where the hashing power experiences only minor fluctuations relative to the total hashing power. With Argentum NT a sudden increase in hashing power could cause a high block rate leading to a much higher coin inflation than intended if the difficulty adjustment algorithm was not altered. Using the original Bitcoin difficulty adjustment algorithm, a sudden drop in hashing power – on the other hand - would prolong the time required to mine a new block by factors. Consequently, it is crucial to select an algorithm that adjusts the mining difficulty with respect to the changing hashing power. Argentum NT uses the T3 difficulty adjustment algorithm in C++ on top of Argentum NT Core to offer the solution to this problem.