Blockchain/Bitcoin for beginners 9: Bitcoin difficulty, target, BITS – all you need to know

Blockchain/Bitcoin for beginners 9: Bitcoin difficulty, target, BITS – all you need to know



In this video I break the somewhat confusing and mysterious question of how exactly the block difficulty is defined, represented and updated.

There is a simplification/misconception that the requirement is just to find a hash with a required number of leading zeros in hex. This is not the case, it’s a little more intricate than that….

I show some examples of real blocks – in particular focusing on the genesis block, and how import it is for initializing the difficulty of mining a block.

I clarify the relationship between BITS (in the block header) difficulty, and the actual 256 hash target.

Links
Blockchain explorer
https://www.smartbit.com.au/

Difficult history chart

Bitcoin Difficulty Chart

Hex converter
http://www.binaryhexconverter.com/hex-to-decimal-converter

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