A protocol feature that automatically alters how hard it is to mine a block based on current network power.
A protocol feature that automatically alters how hard it is to mine a block based on current network power. Bitcoin's difficulty adjustment guarantees constant, predictable block times, which allows Lygos Finance to accurately structure the time-locked aspects of its non-custodial DLC lending contracts.
The Bitcoin network aims to produce a new block exactly every 10 minutes. If more miners join and the hash rate increases, the protocol automatically increases the mining difficulty every 2,016 blocks (roughly two weeks) to maintain this cadence. This self-regulating mechanism ensures a predictable and steady monetary issuance schedule.
Bitcoin's difficulty adjustment guarantees constant, predictable block times, which allows Lygos Finance to accurately structure the time-locked aspects of its non-custodial DLC lending contracts.
Understanding Difficulty Adjustment helps you evaluate how different platforms handle your Bitcoin. Not all custody models are equal, and the technical details determine whether your BTC is truly safe.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.