Ethereum: a deep dive in the calculation of the difficulty
As one of the most used blockchain platforms, Ethereum relies strongly on its complex algorithms to ensure the safety and stability of its network. One crucial aspect of this is the calculation of difficulty – a process that determines the frequency to which new blocks are created, which in turn affects the scalability and performance of the network. In this article, we decompose how the calculation of the difficulty works in simple English.
What is the difficulty?
The difficulty refers to the time necessary for a minor to resolve a complex mathematical puzzle (known as “hash”) which proves the legitimacy of a new block on Ethereum blockchain. This process is called proof of work (POW). The more difficult the puzzle is, the more minors need to break it.
The work processes
To understand the calculation of the difficulty, let’s look at the basic steps:
- MUNER : A minor creates a block of new transactions (a “block”) and adds them to the blockchain.
- hash function : The minor uses a complex algorithm called SHA-256 (secure chopping algorithm 256) to generate a unique digital footprint for each block. This chopping function takes a large input (the content of the block) and produces a fixed size output (hash).
- Target of difficulty : The minor aims to find a chopping which responds to the target of difficulty of the network. In other words, they must solve the puzzle to prove that the new block is valid.
- A common method is to use several “assumptions” (different solutions) until one of them reaches the target difficulty level.
Difficulty target formula
The target of difficulty is calculated using a complex formula which takes into account several factors, in particular:
* Block height : the number of blocks already added to the blockchain.
* Network hash power : the collective hash power of all Ethereum minors. This represents the total calculation capacity of the network.
* Time since the creation of blocks
: how long has passed since the creation of a new block.
The formula is as follows:
`Difficulty = (height of the block / time since the creation of blocks) ^ Power of chopping of the network ‘
How does the difficulty affect the network?
A higher difficulty target requires more power and calculation energy to solve the puzzle. This, in turn, increases the rate of blocking blocks and adds to the congestion of the network. Here is why:
* Creation of slower blocks
: as the difficulty increases, it takes more time to minors to create new blocks.
* Increase in congestion : with more calculation resources dedicated to the resolution of puzzles, the network becomes congestioned and slower.
* higher energy needs : higher difficulty targets require more energy to supply operating equipment, which can cause higher electricity costs.
Conclusion
In simple terms, difficulty calculating Ethereum is a complex process that involves solving complex mathematical puzzles (proof of work) to create new blocks. The power and collective power of the network network since the creation of blocks are used to determine the frequency in which new blocks are created. A target of high difficulty requires more power and calculation energy, which can lead to slower block creation and increased congestion.
Although it may seem intimidating, the Ethereum community has developed various techniques to optimize their solution space and improve the global network efficiency. While the network continues to grow and evolve, the importance of a precise calculation of difficulty will only become crucial to ensure the safety and stability of the entire system.