Difficulty
By CoinGecko | Updated on Mar 03, 2020
In the context of Bitcoin's proof-of-work system, the difficulty is a relative measure on how difficult it is to correctly guess a new block though the mathematical equation performed. In Bitcoin, the difficulty is adjusted periodically based on the amount of hashing power (computing power) on the network.
Related Terms
Dutch Auction
A Dutch Auction, also know as an "inverted" auction, starts off with high asking price that decays over time until a pre-determined floor price.
Utility Token
cryptocurrency tokens with specific utilities on a network besides being used as medium of exchange and investment vehicle.
Lightning Network
It is the "second layer" or an off-chain of payment protocol that operates on top of a blockchain. Payments on this network do not need block confirmation and it will be instant.
Bots
Refers to software or programmes that automatically trade based on preset behaviours.
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