Difficulty

What is "Difficulty"?

Difficulty is the current estimate of the number of hashes required to find a new block on the Bitcoin network. In Bitcoin, difficulty is traditionally expressed as a relative value versus the genesis block, for which approximately 2³² hashes were required. In this metric, the value is presented in absolute terms - as the number of hashes.

Why is "Difficulty" important?

Difficulty reflects the amount of computational work required to find a block and therefore characterizes the level of competition among miners. Increasing difficulty typically accompanies a higher network hash rate, while decreasing difficulty can indicate reduced computational power. The metric enables analysis of mining dynamics and the cost level of block production.

Data source

Metrics displayed across crypto fundamentals are powered by third-party data providers, which may include Glassnode, Coinmetrics, LunarCrush, and DefiLlama. The specific provider or combination of providers behind any given metric may vary.